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Inovio's Influenza Vaccine Shows Potential, Shares Rally

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Inovio Pharmaceuticals, Inc.’s (INO - Free Report) shares increased 22.6% after it announced that its universal influenza vaccine has demonstrated protective antibody responses against all major strains of H1N1 influenza viruses from the last 100 years. Although the candidate is in pre-clinical study and response were reported against a particular virus, investors were encouraged by the universal nature of response.

Shares of the company have declined 10.4% in the past year, underperforming the industry’s gain of 8.8% in that period.

Inovio’s synthetic vaccine, a collection of synthetic DNA antigens, has been tested in multiple animal models including mice, guinea pigs and non-human primates. The vaccine also demonstrated 100% protection in the ferret model, the gold standard in animal models for evaluating influenza vaccines.

Globally efforts have been taken to create a universal flu vaccine, which can protect against every strain of influenza viruses. The currently available vaccines work against only three or four strains, which makes it difficult for health officials to effectively treat the disease by predicting the correct strain of virus in a particular season.

Data published in the journal Vaccine demonstrated that Inovio’s ASPIRE technology platform maybe capable of producing a universal flu vaccine, which can be effective amid seasonal vaccine changes, thus providing continued immune protection.

Per CDC estimates, 56,000 died in 2012-13 due to causes related to influenza while WHO estimated that the seasonal flu vaccines presently have a market size of $3.8 billion. Although, the idea is far-fetched, a potential universal flu will certainly help more number of patients and boost the company’s prospects.

The company believes that this novel strategy can be developed further to protect patients against viruses of dengue, RSV and HIV.

BiondVax Pharmaceuticals Ltd.;s pipeline candidate, M-001, is also being developed as a universal flu vaccine. Moreover, Emergent BioSolutions Inc. (EBS - Free Report) is also developing FLU-IGIV, a human polyclonal antibody, in a phase II study to treat influenza A virus infection. We also remind investors that the FDA had approved the line expansion of GlaxoSmithKline plc’s (GSK - Free Report) influenza vaccine, FluarixQuadrivalent, to include infants six months or older earlier this month.

Inovio carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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