Inovio Pharmaceuticals (INO) Stock Is Bouncing Back

Inovio Pharmaceuticals INO Stock News

Inovio Pharmaceuticals Inc (NASDAQ: INO) has been on a wild ride. Before the company announced that it is working on a coronavirus vaccine, the stock was trading in the $8 to $9 range.

Following the announcement, the stock flew to nearly $19, but then Citron came in. Pointing fingers at what it believed to be a misleading statement about the amount of time it took to develop a DNA-based coronavirus vaccine, the firm slammed INO, sending the stock tumbling. Yesterday, the stock closed at under $6 per share.

However, today, the stock is bouncing back. While Citron pointed fingers, I believe that the firm was wrong, and others seem to be on the same boat. All in all, recent declines may be a huge opportunity. Here’s what’s going on:

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INO Stock Climbed On Coronavirus Claims

In a recent press release, Innovio Pharmaceuticals said that it developed a DNA-based vaccine for the Wuhan coronavirus in just 3 hours after the virus’ DNA sequence was made available. Of course, this made the stock rocket.

After all, the novel coronavirus is no laughing matter. As it quickly spreads around the world, biotech companies and investors alike know that a viable vaccine can be incredibly valuable.

The DNA-based approach seemed to be an even more exciting point for investors. At the end of the day, several companies are working on a vaccine, but only INO is taking this type of approach, giving it a competitive advantage.

Citron Sends Innovio Tumbling

After the stock flew to highs, Citron decided to take hold of the story, and their view was far from positive. In fact, the firm said that the idea that INO developed a vaccine in a matter of 3 hours is ludacris.

In fact, the firm believed that the claims were so ludacris that the SEC should shut down trading on the stock and launch a formal investigation. The firm went on to belittle the work that Innovio Pharmaceuticals is doing and state that the stock has been a serial pumper for years.

The claims made by Citron proved to be overwhelmingly painful. On the day the claims were made, the stock fell more than 30% in value. Yesterday, these declines continued with the stock giving up more than 40% of its value. Nonetheless, this all creates an opportunity in my book.

INO Declines Are An Opportunity

Was Citron right? Did INO really create a coronavirus vaccine in 3 hours after receiving the DNA sequence? I’ve got a bigger question for you… Does any of that even matter?

While I believe that Innovio Pharmaceuticals did create the vaccine as it said it did, the amount of time that it took is really besides the point. What does matter is that Innovio Pharmaceuticals has great experience in the development of DNA-based medicines and vaccines and that they have a vaccine ready to go into trials for COVID-19.

In fact, in a recent timeline published by INO, the company said that Phase 1 trial results are expected by the end of the year. Moreover, 1 million doses of the vaccine are expected to be manufactured by the end of the year for emergeny use. That’s a big statement.

As a result of this statement, INO is among the leaders in the race to develop and bring to market a vaccine that works to fight the novel coronavirus. That’s valuable, and the fact that the stock is trading below where it was when it first made the announcement screams OPPORTUNITY!

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