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Inovio (INO) Stock Rises on Encouraging HIV Vaccine Data

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Inovio Pharmaceuticals Inc. (INO - Free Report) shares have rallied 12% since the company announced that its HIV vaccine evoked almost 100% immune response rates in a clinical study

PENNVAX-GP is a combination of four HIV antigens designed to cover multiple global HIV strains. The combination is able to generate both a T cell (cellular) immune response as well as an antibody (humoral) immune response to both potentially prevent and treat HIV.

Inovio’s share price has outperformed the Zacks categorized Medical - Biomedical and Genetics industry in the past one year. The stock increased 15.2% compared with an increase of 0.5% for the broader industry.

The data presented are from a study conducted collaboratively by Inovio, the HIV Vaccine Trials Network (HVTN) and the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH). The study was designed to evaluate a four-dose regimen of PENNVAX-GP DNA vaccine in combination with a DNA encoded immune activator, IL-12 (INO-9012) in comparison to a placebo in HIV patients. The vaccine is administered by intradermal (ID) or intramuscular (IM) administration.

Data from the study showed a CD4+ or CD8+ cellular immune response to at least one of the vaccine antigens (env A, env C, gag, or pol) in 93% of the evaluable vaccinated participants. Again, 94% evaluated participants demonstrated an env specific antibody response. These responses were not observed in any of the participants treated with a placebo.

Both ID and IM administration of the candidate generated significant results with ID administration achieving cellular response and an HIV env specific antibody response in 96% of evaluated participants. Cellular response was achieved in all the evaluated participants and an env specific antibody response was demonstrated by 90% in IM administration.

The data was presented at the 2017 HVTN Spring Full Group Meeting on May 23 in Washington, D.C.

The government-sponsored study conducted by Inovio and its collaborators was funded through a $25 million NIAID contract awarded in 2009 with an additional grant of $16 million in 2015 for the development of a HIV vaccine. Inovio is focused on developing PENNVAX-GP for both preventive and therapeutic purposes in treatment of HIV.

Data from the press release suggests that HIV has affected 36 million people and another 35 million have died from HIV-related causes to date. HIV is a retrovirus known to cause acquired immunodeficiency syndrome (AIDS), which progressively destroys the immune system and allows cancers and other life-threatening infections to thrive.

Zacks Rank & Stocks to Consider

Inovio Pharma currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include VIVUS, Inc. , sporting a Zacks Rank #1 (Strong Buy), and Aldeyra Therapeutics, Inc. (ALDX - Free Report) and Zoetis Inc. (ZTS - Free Report) , carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

VIVUS’ loss per share estimates narrowed from 50 cents to 39 cents for 2017 over the last 30 days. The company posted positive earnings surprises in all the four trailing quarters, with an average beat of 233.69%.

Aldeyra’ loss per share estimates narrowed from $1.79 to $1.69 cents for 2017 over the last 60 days. The company posted positive earnings surprises in three of the four trailing quarters, with an average beat of 21.91%.

Zoetis’ earnings per share estimates increased from $2.32 to $2.34 for 2017 over the last 30 days. The company posted positive earnings surprises in each of the four trailing quarters, with an average beat of 9.82%.

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