Agora is recommending to sell from the breakthrough letter.
I think I will hang on and pickup some more if we drop.
Dear Breakthrough Technology Alert Reader,
Something may be wrong at Innovio. The company appears to be preparing investors for less than ideal results for its DNA vaccine VGX-3100, which is in phase 2 trials to treat women who have cervical precancerous cells.
Innovio’s stock soared after a 4-1 reverse split Friday and the announcement this week of a new trial for immune therapy to treat neck and head cancers. Then it began tumbling after the company’s CEO gave an interview that seemed to be backpedaling expectations.
We are up more 140% on the stock from the original buy-in price of $3.84 (adjusted for the 4-1 split) based on yesterday’s close. The stock could unwind well below that price if the company indeed has less than stellar results to report on VGX-3100. Results are expected any day now.
I still believe Inovio has a bright future, and I reinforced my opinion two days ago. But too much hinges on VGX-3100, and I believe we have been warned. The company has another phase 2 trial that is stalled for lack of a sponsor, two phase 1 studies for infectious diseases (HIV and influenza) that are not recruiting patients (not a good sign) and one phase 1 study for Hepatitus C that is ongoing but the therapy is designed to be a second-line treatment and Gilead Sciences already has a phenomenal Hep C drug on the market and at least one other company may soon score success with yet another Hep C drug. Inovio’s new head and neck cancer study announced this week also is based on VGX-3100. That therapy has been the bright star of the company and the stock price is built around it.
I believe it would be wise to protect the profits we have. If the company announces good results on VGX-3100 in a few days, we’ll consider jumping back in when the drama dies down.
Recommendation: Sell Inovio (NYSE: INO) immediately.
Stephen Petranek
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