Inovio Pharmaceuticals investors can breathe a little easier this week after the U.S. Food and Drug Administration lifted a partial clinical hold on the planned phase 2 study of the company’s investigational coronavirus vaccine. The biotech can now move forward with that part of the trial. Adding to the good news, Inovio said the U.S. Department of Defense will fund the phase 2 and phase 3 trials. Inovio shares, down 34% since the announcement of the partial hold in late September, jumped nearly 15% in one trading session.
So does this mean Inovio is back as one of the main players in the coronavirus race? Well, it’s clear the hold set the company behind from a timeline perspective. But rapidity isn’t everything in this race. Let’s take a closer look at where Inovio stands right now.
An early leader
First, a glimpse into the past. Inovio was an early leader in the vaccine race. The company caught the world’s attention after saying it had created its investigational vaccine in three hours after receiving the genetic sequence of the coronavirus. Inovio moved into human trials in April, only a month behind leader Moderna .
But since then, the path has not been smooth. Investors were disappointed after Inovio’s phase 1 data reports lacked details on neutralizing antibody levels. These are the antibodies known for blocking infection.
Other challenges included a lack of funding from Operation Warp Speed, the government’s effort to shepherd the most promising vaccines to market, and lower production capacity than its peers. While rivals promise an annual capacity of 500 million vaccine doses or more, Inovio’s capacity is about 100 million doses.
