PLYMOUTH MEETING, Pa. - INOVIO Pharmaceuticals, Inc. (NASDAQ:INO), a biotechnology company specializing in DNA medicines for HPV-related diseases, cancer, and infectious diseases, has announced the pricing of a public offering. According to InvestingPro data, while the company maintains a healthy current ratio of 3.88 and holds more cash than debt, it has been rapidly burning through its cash reserves. The company is offering 10 million shares of its common stock and warrants to purchase an additional 10 million shares at a price of $3.00 per share and accompanying warrant, with the warrants exercisable at $3.76 per share. This pricing comes as the stock trades near its 52-week low, having declined over 60% in the past six months. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other US stocks.
The offering is expected to close on December 16, 2024, subject to customary closing conditions. If the offering is successful and the warrants are not exercised, INOVIO anticipates raising gross proceeds of $30 million. The underwriting discounts, commissions, and offering expenses will be borne by INOVIO, and the net proceeds will be used for general corporate purposes.
Oppenheimer & Co. Inc. and Citizens JMP are serving as joint book-running managers, with Stephens Inc. acting as the lead manager for the offering. The securities are being sold pursuant to a shelf registration statement filed with the Securities and Exchange Commission (SEC) on November 9, 2023, and declared effective on January 31, 2024.
Interested parties can access the preliminary prospectus supplement and accompanying prospectus from the SEC's website. Final versions of these documents will be available through Oppenheimer & Co. Inc. and Citizens JMP Securities upon release.
INOVIO's announcement includes forward-looking statements regarding the anticipated proceeds and the closing date of the offering. These statements are subject to market conditions and other factors that could affect the completion of the offering.
The press release from INOVIO Pharmaceuticals, Inc. serves as the basis for this report. For deeper insights into INOVIO's financial health, valuation metrics, and 16 additional ProTips, investors can access the full analysis through InvestingPro.
In other recent news, Inovio Pharmaceuticals (NASDAQ:INO) reported a net loss of $25.2 million in its third-quarter financial results for 2024, an improvement from the projected loss of $30.1 million. The company also revealed an enhanced cash position of $84.8 million. Inovio's lead product candidate, INO-3107, which targets recurrent respiratory papillomatosis (RRP), has shown promising results with an 81% clinical response rate in its Phase 1/2 trial. The company plans to complete all non-device modules for its Biologics License Application (BLA) by the end of 2024 and aims to submit the BLA by mid-2025. Despite facing competition and manufacturing challenges, Inovio remains confident in the market potential of INO-3107. Analysts at Oppenheimer, H.C. Wainwright, and RBC Capital Markets have adjusted their price targets for Inovio, while maintaining positive outlooks. These recent developments highlight Inovio's strategic efforts to navigate the competitive pharmaceutical landscape.
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