Why Inovio Pharmaceuticals Stock Is PlungingPosted by IEC International on July 18th, 2019 Inovio Pharmaceuticals the clinical stage vaccine company has seen a very unsteady run at the moment, seeing a dip of as much as 13.3% in pre-market trading today, but the question is what has sent investors running for the hills? After the end of trading on Tuesday, Inovio made the announcement that the companies cost cutting initiatives that centers in the acceleration of the development of their most advanced HPV clinical assets, along with a number of other high importance candidates. The biotech giant have as a result decided to halt their early stage trials for their advanced bladder cancer candidate, and cut the workforce on the project by almost 30%. These moves by the company are set to slash the company’s burn rate by over 25% over the course of the next year. Now most commonly in biotech investors, when a company decides to cut costs and focus on later stage clinical candidates investors rejoice, however in the case of Inovio the company has a history of changing the direction and financial spread of their company, with little to show for it. In fact, Inovio has been part of the biotech industry for nearly 2 decades, and at this point has zero commercial stage products. Investors are probably concerned that the latest change made by the company will turn out to be yet another dead end. Sarah Miller – IEC International Like it? Share it!More by this author |