Inovio Prices $74.99 Million Offering At $1.05 To Fund VOCERYQ Launch
New common shares represent 34.8% of the post-offering total as Inovio prepares to commercialize its first approved medicine.
Inovio Pharmaceuticals, which develops DNA medicines, priced a $74.99 million offering Thursday at $1.05 per common share, a 27.6% discount to Thursday’s close; the new common shares represent 34.8% of shares outstanding after the offering. The financing will help fund the launch of VOCERYQ, its first commercial-stage medicine, while the company warns that its working capital cannot cover its planned operations for the next twelve months.
58.7 Million New Common Shares
The offering comprises 58,747,235 common shares and pre-funded warrants covering 12,681,337 shares, priced at $1.049 each. Those warrants let investors pay nearly the entire purchase price upfront, with an additional $0.001 per share due upon exercise.
The common-share count would reach 168,928,742 after the offering, excluding warrant exercises and the underwriters’ option. INO shares closed Thursday at $1.45, the reference price for the offering’s discount.
Jefferies and Piper Sandler are the joint book-running managers, with H.C. Wainwright serving as lead manager. Their 30-day option covers up to 10,714,285 additional common shares. Inovio estimates net proceeds of approximately $70.0 million after commissions and expenses, or approximately $80.5 million if that option is exercised in full.
An Approved Medicine, A Cash Warning
Inovio said it intends to use the money “primarily to fund the commercial launch of VOCERYQ, for the development of our clinical pipeline and for general corporate purposes.” Its preliminary, unaudited estimate put cash, cash equivalents and short-term investments at approximately $48.4 million as of September 30.
The working-capital shortfall raises substantial doubt about Inovio’s ability to keep operating. The company has earned no revenue from product sales and says meaningful revenue depends on successfully commercializing VOCERYQ; its revenue sources have instead included licensing, milestones and collaborative research.
The FDA granted VOCERYQ accelerated approval Friday, October 30, to reduce surgeries in adults with recurrent respiratory papillomatosis, a rare condition involving tumors in the respiratory tract. Formerly called INO-3107, the medicine uses small circular DNA molecules to instruct cells to produce proteins and is administered with the CELLECTRA 5PSP device.
VOCERYQ’s Commercial Rollout
Inovio expects VOCERYQ to be available for ordering and shipment approximately 60 days after approval, with full field deployment anticipated in the first quarter of 2027. Syneos Health is helping recruit and deploy its medical and commercial teams. The anticipated price is approximately $115,000 per dose, or $460,000 for four doses.
Approval drew on a trial involving 32 adults, with 26 included in the efficacy evaluation. Seven of those 26 patients, or 27%, needed no surgical removal of papillomas during 12 months of follow-up. Continued approval may depend on confirmatory studies; Inovio expects to submit a draft protocol by year-end 2026 and aims to agree on a final protocol by mid-2027.
Commercialization also brings competition from the approved RRP treatment PAPZIMEOS and uncertainty over insurance coverage and reimbursement. Other Inovio DNA medicines remain in research and development.
Delivery of the offering’s common shares and pre-funded warrants is expected on or about Monday.
Sources
- Form 424B5 — INOVIO PHARMACEUTICALS, INC. (INO) — SEC EDGAR
- INOVIO Pharmaceuticals announces proposed public offering; shares tumble (INO:NASDAQ) | Seeking Alpha — seekingalpha.com
- INOVIO Announces Pricing of Approximately $75 Million Public Offering — prnewswire.com
- L’action Inovio chute de 25% après une offre d’actions de 75M$ — Yahoo Finance
- Inovio股價因7,500萬美元股票發行暴跌25% — Yahoo Finance
- All Stock Offering News and Press Releases from PR Newswire — prnewswire.com
