Aegis Keeps Inovio (INO) at 'Buy'; Hep B Immunotherapy Partnership with Roche Will Continue

Aegis Capital reiterates Inovio Pharma (Nasdaq: INO) at Buy wtih a price target of $19 following news that Roche (OTCBB: RHHBY) terminated their 2013 collaboration, option, and license agreement to co-develop INO-5150, Inovio's DNA immunotherapy targeting prostate cancer, as well as their research collaboration in prostate cancer.

Analyst Ram Selvaraju commented, We believe that Roche's decision was likely based on its own strategic priorities and not on data or scientific reasons of Inovio’s candidate. Inovio indicated that it plans to independently advance INO-5150 into a phase I clinical trial in the first half of 2015. We note that Inovio may seek collaborations with other drug developers on this candidate.

Selvaraju noted that Roche and Inovio will continue partnership in hep B immunotherapy: Investors should be aware that Inovio and Roche will continue to collaborate and co-develop Inovio's DNA immunotherapy (INO-1800) against hepatitis B virus under their existing license agreement. The partnership is on track to move INO-1800 into a phase 1 study in 2015. Preclinical data showed INO-1800 generated strong T-cell and antibody responses that led to the elimination of targeted liver cells in mice without evidence of liver injury. It was the first study to provide evidence that intramuscular immunization can induce killer T-cells that can migrate to the liver and eliminate target cell.

For an analyst ratings summary and ratings history on Inovio Pharmaceuticals click here. For more ratings news on Inovio Pharmaceuticals click here.

Inovio Pharmaceuticals closed at $9.86 yesterday.

You May Also Be Interested In

• Summit Insights Downgrades Silicon Labs (SLAB) to Hold, 'expect its stock to be an inline performer'
• RTX Corp. (RTX) PT Raised to $110 at BofA Securities
• Vital Farms (VITL) PT Raised to $32 at Lake Street Capital Markets