Quarter Results Summary

release date: May 9, 2012
for quarter ending: March 31, 2012 (first quarter 2012)

Warning: Inovio is a startup mode company. It should be considered a very risky investment, with risks similar to venture capital. Inovio will likely need to raise more capital, diluting current shares, as it is likely years away from profitability.

Inovio did not hold an analyst call. These article is based on their press release.

at the time this was written. However, I initiatied a position on May 21, 2012
Forward-looking statements

Overview: Continues to report significant positive results in early-stage trials of its novel vaccine platform.

Basic data (GAAP):

Revenue was $1.7 million, up 6% sequentially from $1.6 million but down 45% from $3.1 million in the year-earlier quarter.

Net income was negative $8.3 million, down sequentially from negative $5.5 million and also down from year-earlier negative $2.4 million.

EPS (earnings per share, diluted) was negative $0.06, down sequentially from negative $0.05 per share and down from negative $0.02 in the year-earlier quarter.

Guidance:

none

Conference Highlights:

Revenue consisted of $130,000 in license and milestone revenue, plus $1.56 million in grant and miscellaneous revenue.

There were two large, non-cash negative items: in other income a loss of $3.5 million in change in fair value of common stock warrants and a $0.56 million loss on investment in affiliated entity.

Research and development expense was $4.0 million. General and administrative expense was $2.5 million. There was a gain on sale of assets of $0.65 million, resulting in total operating expenses of $5.88 million.

The end-of-quarter cash balance was $25.9 million, down sequentially from $30.3 million, for a $4.4 million cash burn. Believes they have cash to operate through Q3 2013.

Following the successful Phase I study of VGZ-3100 HPV vaccine, patients are being enrolled in a Phase II study for women with cervical dysplasia. Results are expected in the second half of 2013.

PENNVAX-B for HIV using CELLECTRA electroporation Phase I study showed immune T-cell responses.

A Phase II study of VGX-3100 vaccine for cervical dysplasia is enrolling patients, with data expected in the first half of 2013.

ChronTech Pharma AB is enrolling two Phase II trials of DNA vaccines, one for hepatitis C (HCV) and one for leukemia, also with Inovio's electroporation system, with interim data expected in the second half of 2012.

This quarter (Q2) two different Phase I influenza vaccine studies are expected to report data.

A number of preclinical developments continue. "Inovio's new skin electroporation technology significantly enhanced delivery of small interfering RNA (siRNA) molecules to skin and also demonstrated gene knockdown (silencing) in animal studies."

A patent was granted for Inovio's synthetic consensus influenza H1 antigen.

Another Defense Department grant was received to further develop electroporation delivery devices.

Q&A:

none

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