NASDAQ$INO

Inovio Pharmaceuticals Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced second quarter 2023 financial results and provided a strategic update.

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

Headline financials

Total Revenue

$226K

Previous: $784K-71.2%
EPS (adj)

-$1.56

Previous: -$5.52+71.7%
Capital Expenditures

-$321K

Previous: -$717K+55.3%
Free Cash Flow

-$35.9M

Previous: -$109M+67.2%
Net Income

-$35.5M

Previous: -$108M+67.2%
Operating Income

-$37M

Previous: -$104M+64.4%
Gross Profit

$2.17M

Previous: $858K+152.8%
Cash & Equivalents

$52.7M

Previous: $41.1M+28.2%
Total Assets

$233M

Previous: $459M-49.3%
Stock-Based Comp

$2.92M

Previous: $8.34M-65.0%

Revenue & EPS history

Inovio · Revenue · Quarterly

$226K

Q2 2023-71.2%vs Q2 2022
Beat estimate in 5 of 13 quarters(38%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Cash projections do not include any funds that may be raised through the Company’s existing at-the-market program or other capital-raising activities.
  • Uncertainties inherent in pre-clinical studies, clinical trials, product development programs and commercialization activities and outcomes

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-1.6%

Avg return

Earnings day

-0.6%

Avg return

5 days after

-5.5%

Avg return

30 days after

39%

25 / 64 earnings

Positive

+21.6%

Q4 2014

Best reaction

-27.8%

Q2 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.3%-13.5%
Q4 2025-1.2%-1.2%-36.9%
Q3 2025-7.1%-4.7%-0.9%
Q1 2025-1.6%+7.8%+4.2%
Q4 2024-6.7%-10.5%-17.1%
Q3 2024-13.9%-18.6%-53.1%
Q2 2024-1.7%-8.1%-26.9%
Q1 2024+7.2%+12.7%-11.0%
Q4 2023-6.7%+24.4%+21.9%
Q3 2023-7.9%+0.0%+0.0%
Q2 2023+9.5%+9.5%+7.1%
Q1 2023-7.1%-8.3%-38.1%
Q4 2022+3.2%-4.0%-34.9%
Q3 2022+1.4%+9.3%-14.4%
Q2 2022+10.2%+11.4%-8.5%
Q1 2022-23.6%-16.0%-30.4%
Q4 2021-5.9%-4.0%+10.8%
Q3 2021+5.6%+9.1%-7.0%
Q2 2021-5.9%+1.3%-9.2%
Q1 2021-5.3%-4.4%+46.4%
Q4 2020-9.7%-17.2%-16.4%
Q3 2020+9.3%+6.6%+8.5%
Q2 2020-27.7%-26.9%-49.2%
Q1 2020+18.8%+23.7%+23.3%
Q4 2019-14.0%-12.3%-3.0%
Q3 2019-5.7%-4.1%+10.6%
Q2 2019-1.6%-6.3%-15.8%
Q1 2019-4.4%-9.2%-37.2%
Q4 2018+3.7%+0.0%+15.9%
Q3 2018+1.1%-7.5%-1.3%
Q2 2018+14.3%+13.8%+35.5%
Q1 2018-6.2%+1.1%-5.1%
Q4 2017+6.6%+12.6%+11.5%
Q3 2017-16.6%-14.3%-15.3%
Q2 2017-0.2%-1.4%+7.8%
Q1 2017+5.8%+15.2%+27.0%
Q4 2016-6.1%-7.7%-7.9%
Q3 2016+18.7%+26.8%+8.7%
Q2 2016-8.1%-9.1%-8.1%
Q1 2016+4.7%
Q4 2015-4.9%
Q3 2015+3.1%
Q2 2015+20.5%
Q1 2015+1.1%
Q4 2014+21.6%
Q3 2014+0.6%
Q2 2014-12.9%
Q1 2014+2.8%
Q4 2013-2.0%
Q3 2013-1.1%
Q2 2013-27.8%
Q1 2013+1.6%
Q4 2012-1.9%
Q3 2012-7.6%
Q2 2012+1.9%
Q1 2012-2.0%
Q4 2011-6.5%
Q3 2011-4.8%
Q2 2011+1.7%
Q1 2011+0.0%
Q4 2010-1.8%
Q3 2010+5.9%
Q2 2010-1.1%
Q1 2010-7.5%

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