Inovio Pharmaceuticals (NASDAQ: INO) is a DNA vaccine and Immunotherapy company that has been performing well since the beginning of 2020. The huge interest of the buyers in this stock is due to its record time development of a vaccine against the much talked about COVID-19. The most significant growth in its stock performance came after it declared in the last week that researchers in its San Diego facility have come up with a vaccine for Coronavirus within a few hours after it got access to the genetic sequence of the virus that is spreading like bush fire. In a recent interview, CEO J. Joseph Kim has said that the human trials for the vaccine will begin as soon as this summer itself.
The deal with Inovio’s latest finding is that the Coronavirus has already spread across 29 countries and has reported more than 1600 deaths. Also, the global supply chain is badly hit due to the disruption at the production facilities based in China. What’s more threatening is that this virus has an extensive incubation period which offers it the potential to become a seasonal endemic and spread like flu. In such a scenario, a vaccination or antiviral therapy will be a must to fight the battle against this fatal virus and respiratory ailment.
Should the investors take more interest in this stock during the Coronavirus outbreak period? Let’s find out –
At present, the flu vaccine market is worth $2 billion every year. Though Coronavirus will never have such a market, it will garner millions if the right vaccine is commercially launched. Inovio recently jumped 25.7% post the outbreak of the virus in China and its subsequent parts. However, the point to note here is that Inovio has been in the business for the last 40 years but it has never brought about any commercial vaccine into the market as of yet.
However, if you solely wish to invest in a company to make money out of the Coronavirus vaccination, Inovio might just not be the perfect bet. In the last 4 decades, the company hasn’t brought to market a single product of its own which has led to numerous shareholders retiring from their stocks. A negative return on capital of 92.7% is what Inovio has got for its stockholders. Unless they commercially launch a vaccination of their own, it is better to wait and watch their steps well enough before putting money on them. Numerous other pharmaceutical stocks can offer you a better bet for your money.