Stifel analysts cut their price target for Inovio Pharmaceuticals from $24 to $16 on Tuesday, after the company posted a wider-than-expected second-quarter loss and revenue that fell short of estimates, reported MarketWatch.
The numbers and the call "left us (again) with more questions than answers on numerous fronts," said analysts led by Stephen Willey, including regarding the disclosure of timelines for a trial of Inovio's COVID-19 vaccine candidate INO-4800.
The company said it expanded a 40-patient early-stage clinical trial by another 80 participants and that most patients were showing an immunological response to the vaccine, either by achieving binding antibodies, neutralizing antibodies or T cell responses.
"Our hesitancy to attribute any INO-4800-related value in our model persists and our previously reduced discount rate (9%) reflected improved perception [regarding] the likelihood of procuring third-party funding," the analyst note said.
"We believe these lingering questions, coupled with an acceleration of the competitive development landscape (and difficult-to-beat immunogenicity hurdles), forces us to revisit that assumption," the analysts added.
The company reported a second-quarter loss of $128.7 million, compared with a loss of $29.4 million in the year-ago period, while sales rose to about $267,000 from about $136,000. Analysts had forecast revenue of $2.6 million.
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