Markets

Inovio Stock Soars 13% After Offering Update Extends Its Expected Cash Horizon

Expected net proceeds of about $80.5 million would fund operations into late fourth quarter 2027, versus an earlier first-quarter horizon.

Inovio Pharmaceuticals, which develops DNA medicines, soared 12.76% to $1.37 in Monday trading, as of 10:07 AM ET, adding $17 million in market value after a financing update. A Monday SEC filing put expected net proceeds at approximately $80.5 million, extending its projected cash horizon into late fourth quarter 2027.

More Cash, More Shares

Underwriters fully exercised their option to buy additional shares. Inovio expects the offering proceeds, combined with existing funds, to support operations into late fourth quarter 2027.

The financing also increases the share count: new common shares account for 34.8% of shares outstanding after the offering, according to the prospectus filed Friday after the close. Inovio earmarked the proceeds for VOCERYQ's launch, development and general corporate purposes.

Its earlier forecast, published in its August 12 earnings release, anticipated funding operations into late first quarter 2027, including a potential INO-3107 launch if approved. That projection included approximately $18.3 million in net proceeds from a July offering and estimated operational cash burn of approximately $18 million for the third quarter of 2026.

A Rebound After A Weak Year

Inovio entered Monday down 30% for the year through Friday's close, while the S&P 500 had gained 8%. Before Monday's session, the stock stood 53% below its highest close of the past year.

The stock was on pace for its second gain of 10% or more this month. Inovio's total market value was about $151 million in Monday trading.

The company reported zero revenue and a $6 million net loss for the second quarter. Its business has relied on license fees, milestone payments and collaborative research agreements rather than product sales.

Preparing DNA Medicines For Commercialization

Inovio's lead candidate, INO-3107, targets recurrent respiratory papillomatosis, a rare condition that produces airway tumors. Its platform pairs small circular DNA molecules that instruct cells to produce specific proteins with CELLECTRA devices, which use brief electrical pulses to deliver the medicines into cells.

The company was preparing for a potential U.S. launch in its August update, with Syneos Health serving as its contract sales organization and recruiting medical science liaisons. Inovio had also engaged or identified partners for distribution, pharmacy services and patient support.

The financing gives Inovio a later projected funding horizon, while the new shares make up 34.8% of the post-offering common-share total.