Ram Selvaraju, an analyst from H.C. Wainwright, reiterated the Hold rating on Inovio Pharmaceuticals. The associated price target remains the same with $3.00.
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Ram Selvaraju has given his Hold rating due to a combination of factors surrounding Inovio Pharmaceuticals’ recent developments and future prospects. The completion of the Biologics License Application for INO-3107 under the FDA’s accelerated approval program is a positive step, but the acceptance of this application is not expected until the end of 2025, with a potential PDUFA date in mid-2026. Despite the promising designations of Orphan Drug and Breakthrough Therapy for INO-3107, the market entry is still pending, and the treatment’s long-term efficacy data, although favorable, are still emerging.
Additionally, the valuation of Inovio is based on a discounted cash flow analysis, estimating the market value at $191 million, which translates to approximately $3 per share. This valuation considers a 75% probability of approval for INO-3107 in treating recurrent respiratory papillomatosis but also highlights significant risks such as potential failures in clinical trials, regulatory approval, and commercial success. These uncertainties contribute to the Hold rating, suggesting that while there are positive indicators, the risks and timeline for potential market success warrant caution.
In another report released on October 29, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $2.50 price target.