Back in March I wrote about my purchase of shares in Inovio Pharmaceuticals, Inc (INO). Inovio is a clinical stage pharmaceutical company (meaning it’s in the early stages of developing new drug treatments and vaccines). I bought in March after the company raised cash to fund expansion.
Since then the stock underwent a 1 for 4 reverse split (for every 4 shares of stock I owned I got 1 share worth 4 times its original price). The stock had been trading lower for the past few months and I’ve been waiting out what at times was a serious dip in value.
Yesterday though, I finally saw a pop in price thanks to the announcement of a successful step in their drug trials. In official terms, the company announced “successful results from its randomized, double-blind, placebo-controlled phase II trial of VGX-3100 in women with biopsy-proven cervical intraepithelial neoplasia 2/3 (CIN2/3) associated with human papillomavirus (HPV) types 16 or 18.”
In terms my non-med school educated brain can understand, their drug shows effectiveness in treating cervical effects from HPV. This is key because there are not currently treatments for HPV on the market, just vaccines. A successful treatment would be amazing for purely social reasons given the high percentage of the population affected by HPV, plus the very scary diseases some strains can lead to (cervical cancer). But on top of that, it would be a huge money maker for the company, with estimated sales at $540 million.
This positive announcement makes me even more bullish on the company. After the jump from yesterday’s announcement I sold my shares for a 20% profit. Then today I waited for a small dip and bought back in at $12.60.
While I’m pumped about my big gain yesterday, this stock is a long term hold for me. I expect to see the stock rise significantly over next few years as treatments are brought to market.