FinancialContent is the trusted provider of stock market information to the media industry.
Inovio Pharmaceuticals Reports 2012 First Quarter Financial Results

BLUE BELL, Pa., May 9, 2012 /PRNewswire/ -- Inovio Pharmaceuticals, Inc. (NYSE AMEX: INO) today reported financial results for the quarter ended March 31, 2012.

Total revenue was $1.7 million for the three months ended March 31, 2012, compared to $3.1 million for the same period in 2011. Total operating expenses were $5.9 million compared to $7.5 million. The net loss attributable to common stockholders was $8.3 million, or $0.06 per share, compared to $2.4 million, or $0.02 per share.

Revenue

The decrease in revenue for the comparable periods was primarily due to timing of work performed under the company's contract with the National Institute of Allergy and Infectious Diseases (NIAID). This contract revenue amounted to $1.5 million versus $2.7 million, respectively. This NIAID contract, which exceeds $23 million over five years (plus two additional option years), is facilitating Inovio's development of a universal, preventive HIV DNA vaccine, PENNVAX®-GP.

Operating Expenses

Research and development expenses for Q1 2012 were $4.0 million compared to $4.4 million for Q1 2011. General and administrative expenses were $2.5 million versus $3.3 million, respectively.

Net Loss Attributable to Common Stockholders

The $5.9 million increase in net loss for the comparable periods resulted primarily from a significant (non-cash) change in fair value of common stock warrants, based on a required quarterly mark to market adjustment to reflect changes in the Company's stock price, and decrease in grant revenue.

Capital Resources

As of March 31, 2012, cash and cash equivalents plus short-term investments in certificates of deposit, mutual funds, and municipal bonds were $25.0 million compared with $30.3 million as of December 31, 2011.

Based on management's projections and analysis, the Company believes that cash and cash equivalents are sufficient to meet its planned working capital requirements into the third quarter of 2013.

Inovio's balance sheet and statement of operations is provided below. Form 10-Q providing the complete 2012 first quarter financial report can be found at: http://ir.inovio.com/secfilings.

Corporate Update

Clinical Development

During the first quarter Inovio reported significant vaccine-specific T-cell responses from its HIV-001 open label, phase I study, which enrolled 12 adult HIV-positive volunteers to assess safety and levels of immune responses generated by Inovio's PENNVAX®-B vaccine delivered with its CELLECTRA® electroporation device. The results affirmed best-in-class immune responses reported last year from Inovio's HVTN-080 phase I study of PENNVAX-B in healthy volunteers.

Enrollment is ongoing in Inovio's phase II clinical study of VGX-3100 for cervical dysplasia. Data is expected in the second half of 2013. The company's collaborators, the University of Southampton and ChronTech Pharma AB, continue their enrollment of patients in phase II studies of DNA vaccines for leukemia and hepatitis C virus, respectively, with interim data anticipated in the second half of 2012.

We expect to report data from two phase I influenza studies, one for our synthetic vaccine focused on H5N1 influenza, the other for our synthetic universal vaccine targeting H5N1 and H1N1, in the second quarter.

Preclinical Development

During the quarter we announced data from multiple research and preclinical programs.

Synthetic vaccines for influenza Type A H3N2 and Type B achieved protective antibody responses in immunized animals against multiple unmatched strains from the years 2000 through 2012, progressing our universal influenza vaccine strategy.

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.

Inovio's SynCon® therapeutic vaccine for human papillomavirus (HPV) types 6 and 11, associated with head & neck cancers and genital warts, induced strong antigen-specific CD8+ T cells in mice, mirroring robust T-cell responses induced by VGX-3100 in earlier mice studies.

Corporate & Business Development

Inovio received a patent covering its synthetic consensus influenza H1 antigen, which relates to our H1N1 influenza constructs and INO-3510 universal influenza vaccine.

Inovio was awarded a U.S. Department of Defense Small Business Innovation Research Grant to advance a low-cost, non-invasive surface electroporation delivery device and test its utility in combination with Inovio synthetic vaccines against viruses with bioterrorism potential.

Niranjan Y. Sardesai, Ph.D., was promoted to Chief Operating Officer and is now responsible for corporate and business development in addition to overseeing research and development.

Dr. Anthony Ford-Hutchinson, recently retired from his role as Senior Vice President, Vaccines Research and Development at Merck, joined Inovio's Scientific Advisory Board.

Dr. Adel Mahmoud was appointed to Inovio's Board of Directors. He is a professor at Princeton University, was President, Merck Vaccines, from 1999 to 2005, and also served as Merck's Chief Medical Advisor for Vaccines and Infectious Diseases.

Inovio has an expanding dialog with vaccine and biotechnology companies as well as non-governmental and government agencies with the goal of securing non-dilutive funding for its vaccine programs and potentially new collaborations and partnerships to advance the development and commercialization of its SynCon® vaccine platform and specific SynCon vaccines.

About Inovio Pharmaceuticals, Inc.

Inovio is revolutionizing vaccines to prevent and treat today's cancers and challenging infectious diseases. Its SynCon® vaccines are designed to provide universal cross-strain protection against known as well as newly emergent unmatched strains of pathogens such as influenza. These synthetic vaccines, in combination with Inovio's proprietary electroporation delivery, have been shown in humans to generate best-in-class immune responses with a favorable safety profile. Inovio's clinical programs include phase II studies for cervical dysplasia, leukemia and hepatitis C virus and phase I studies for influenza and HIV. Partners and collaborators include the University of Pennsylvania, Merck, ChronTech, National Cancer Institute, U.S. Military HIV Research Program, NIH, HIV Vaccines Trial Network, University of Southampton, US Dept. of Homeland Security and PATH Malaria Vaccine Initiative. More information is available at www.inovio.com.

This press release contains certain forward-looking statements relating to our business, including our plans to develop electroporation-based drug and gene delivery technologies and DNA vaccines and our capital resources. Actual events or results may differ from the expectations set forth herein as a result of a number of factors, including uncertainties inherent in pre-clinical studies, clinical trials and product development programs (including, but not limited to, the fact that pre-clinical and clinical results referenced in this release may not be indicative of results achievable in other trials or for other indications, that the studies or trials may not be successful or achieve the results desired, that pre-clinical studies and clinical trials may not commence or be completed in the time periods anticipated, that results from one study may not necessarily be reflected or supported by the results of other similar studies and that results from an animal study may not be indicative of results achievable in human studies), the availability of funding to support continuing research and studies in an effort to prove safety and efficacy of electroporation technology as a delivery mechanism or develop viable DNA vaccines, the adequacy of our capital resources, the availability or potential availability of alternative therapies or treatments for the conditions targeted by the company or its collaborators, including alternatives that may be more efficacious or cost-effective than any therapy or treatment that the company and its collaborators hope to develop, evaluation of potential opportunities, issues involving product liability, issues involving patents and whether they or licenses to them will provide the company with meaningful protection from others using the covered technologies, whether such proprietary rights are enforceable or defensible or infringe or allegedly infringe on rights of others or can withstand claims of invalidity and whether the company can finance or devote other significant resources that may be necessary to prosecute, protect or defend them, the level of corporate expenditures, assessments of the company's technology by potential corporate or other partners or collaborators, capital market conditions, the impact of government healthcare proposals and other factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2011, our Form 10-Q for the quarter ended March 31, 2012, and other regulatory filings from time to time. There can be no assurance that any product in Inovio's pipeline will be successfully developed or manufactured, that final results of clinical studies will be supportive of regulatory approvals required to market licensed products, or that any of the forward-looking information provided herein will be proven accurate. 

 

INOVIO PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS



March 31,
2012

December 31,
2011


(Unaudited)


ASSETS



Current assets:



Cash and cash equivalents

$       11,128,895

$       17,350,116

Short-term investments

13,730,072

12,863,420

Accounts receivable

876,730

467,909

Accounts receivable from affiliated entity

39,066

38,406

Prepaid expenses and other current assets

760,733

746,049

Prepaid expenses and other current assets from affiliated entity

400,890

441,186




Total current assets

26,936,386

31,907,086

Restricted cash

100,146

100,059

Fixed assets, net

355,302

295,785

Intangible assets, net

8,849,869

9,310,485

Goodwill

10,113,371

10,113,371

Investment in affiliated entity

8,509,969

9,071,513

Investment in common stock warrants

294,000

100,000

Other assets

191,913

208,262




Total assets

$       55,350,956

$       61,106,561




LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities:



Accounts payable and accrued expenses

$          3,316,787

$          4,318,942

Accounts payable and accrued expenses due to affiliated entity

82,158

20,344

Accrued clinical trial expenses

773,769

1,059,372

Common stock warrants

8,417,492

5,176,319

Deferred revenue

48,739

79,502

Deferred revenue from affiliated entity

376,042

388,542




Total current liabilities

13,014,987

11,043,021

Deferred revenue, net of current portion

79,046

80,450

Deferred revenue from affiliated entity, net of current portion

1,867,944

1,961,694

Deferred rent

80,660

80,875

Deferred tax liabilities

78,859

78,859




Total liabilities

15,121,496

13,244,899

Stockholders' equity:



Inovio Pharmaceuticals, Inc. stockholders' equity:



Common stock

134,968

134,968

Additional paid-in capital

257,838,611

257,235,707

Accumulated deficit

(218,346,123)

(210,091,174)

Accumulated other comprehensive income

65,006

35,393




Total Inovio Pharmaceuticals, Inc. stockholders' equity              

39,692,462

47,314,894

Non-controlling interest

536,998

546,768




Total stockholders' equity

40,229,460

47,861,662




Total liabilities and stockholders' equity

$       55,350,956

$       61,106,561









 

INOVIO PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)



Three Months Ended
March 31,


2012

2011

Revenues:



License fee and milestone revenue

$          24,838

$          26,368

License fee and milestone revenue from affiliated entity         

106,250

93,750

Grants and miscellaneous revenue               

1,562,033

2,985,147




Total revenues   

1,693,121

3,105,265

Operating expenses:



Research and development             

4,042,579

4,421,799

General and administrative              

2,488,088

3,319,232

Gain on sale of assets

(651,000)

(250,000)




Total operating expenses               

5,879,667

7,491,031




Loss from operations      

(4,186,546)

(4,385,766)

Other income (expense):



Interest and other income, net

31,544

1,855

Change in fair value of common stock warrants         

(3,548,173)

2,331,868

Loss on investment in affiliated entity            

(561,544 )

(370,011)

Net loss               

(8,264,719)

(2,422,054)

Net loss attributable to non-controlling interest            

9,770

9,441

Net loss attributable to Inovio Pharmaceuticals, Inc.              

$  (8,254,949)

$   (2,412,613)




Loss per common share — basic and diluted:



Net loss per share attributable to Inovio Pharmaceuticals, Inc. stockholders

$             (0.06)

$             (0.02)




Weighted average number of common shares outstanding — basic and diluted           

134,968,394

120,922,577

 

CONTACTS:
Investors: Bernie Hertel, Inovio Pharmaceuticals, 858-410-3101
Media: Jeff Richardson, Richardson & Associates, 805-491-8313

SOURCE Inovio Pharmaceuticals, Inc.

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here
   
Financial Widgets

Display market data, financial news or stock quotes - Learn More

Advertising Network

Advertise on FinancialContent's huge network - Learn More

Web Services

Power your internet and wireless applications - Learn More