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Inovio's (INO) Q3 Earnings Impress, Revenues Up Y/Y

Zacks Equity Research
Updated

Inovio Pharmaceuticals, Inc. INO reported third-quarter 2015 earnings of 7 cents per share, which compared favorably with the year-ago loss of 12 cents. The company benefited from higher revenues. The Zacks Consensus Estimate was a loss of 1 cent.
 



In the third quarter, the company reported revenues of $24.2 million, missing the Zacks Consensus Estimate of $29 million but up from $1.8 million in the year-ago period. The in Revenues increased year over year primarily on the back of the Ebola grant received from the Defense Advanced Research Projects Agency (DARPA) and $15.0 million of revenues recognized in the third quarter as upfront payment received from its partnership agreement with MedImmune, the global biologics research and development arm of AstraZeneca AZN.

In Aug 2015, Inovio announced that it has entered into a license and collaboration agreement with MedImmune. As per the terms of the agreement, MedImmune acquired exclusive rights to Inovio's INO-3112 (in a phase I/II study for cervical, head and neck cancers). In exchange, Inovio received an upfront payment of $27.5 million and is entitled to potential milestones payments totaling up to $700 million. AstraZeneca will fund all development costs. Inovio is also entitled to receive royalties (double-digit tiered) on INO-3112 sales.

In the third quarter of 2015, research and development expenses were $16.1 million, up 129.1% from the year-ago quarter due to increased investment in the pipeline. General and administrative expenses increased 38.8% year over year to $4.4 million.

The company expects operating expenses to grow in the future. However, significant development payments from collaborators and funders such as MedImmune, Roche RHHBY and DARPA should help offset this increase in expenses.

Inovio carries a Zack Rank #4 (Sell). A better-ranked stock in the health care sector is Corcept Therapeutics Incorporated CORT, which carries a Zacks Rank #1 (Strong Buy).

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ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report
 
ASTRAZENECA PLC (AZN): Free Stock Analysis Report
 
CORCEPT THERAPT (CORT): Free Stock Analysis Report
 
INOVIO PHARMAC (INO): Free Stock Analysis Report
 
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