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Jun 30, 2023
Inovio Q2 2023 Earnings Report
Announced second quarter 2023 financial results and provided a strategic update.
Key Takeaways
Inovio announced its Q2 2023 financial results, highlighting progress with INO-3107 and a strategic update including pipeline reprioritization and corporate reorganization with a focus on late-stage clinical programs. The company is preparing to initiate a pivotal Phase 3 trial of INO-3107 in adult RRP patients in the first quarter of 2024. INOVIO is stopping investment in VGX-3100 for cervical HSIL for U.S. market. A headcount reduction and reallocation of resources are expected to lower future cash burn and extend cash runway into the third quarter of 2025.
Preparing to initiate pivotal Phase 3 trial of INO-3107 in adult RRP patients in first quarter of 2024; INO-3107 received Orphan Drug Designation from European Commission in second quarter
Scaling resources and headcount to align with strategic focus on INO-3107 and late-stage clinical candidates closest to market and with greatest opportunity to deliver on the promise of DNA medicines for patients
Following biomarker analysis from REVEAL2, INOVIO is stopping investment in VGX-3100 for cervical HSIL for U.S. market; Remains committed to supporting partner ApolloBio’s non-biomarker strategy for Chinese market
$194.9 million in cash, cash equivalents and short-term investments at quarter end; Headcount reduction and reallocation of resources expected to lower future cash burn and extend cash runway into third quarter of 2025
Forward Guidance
INOVIO estimates that cost savings will enable it to fund operations into the third quarter of 2025, with an expected cash burn of approximately $34.0 million for the third quarter of 2023, decreasing incrementally throughout the remainder of 2023 and 2024.
Positive Outlook
- Cost savings from headcount reduction will provide annual savings of approximately $9.9 million.
- Cash runway extended into the third quarter of 2025 due to cost savings.
- Cash burn expected to decrease incrementally throughout the remainder of 2023 and 2024.
- Focus on late-stage candidates with the greatest likelihood of success.
- Existing cash resources are expected to allow the company to achieve important catalysts for key programs.
Challenges Ahead
- Stopping the development of VGX-3100 in cervical HSIL for the U.S. market.
- Workforce reduction of 58 employees, or 30%.
- Cash burn estimate of approximately $34.0 million for the third quarter of 2023.
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