Inovio Pharmaceuticals stock (NASDAQ: INO) had an unbelievable day in the stock market yesterday, gaining nearly 70%. Those gains are continuing this morning, with the stock up more than 5% in the premarket.
The INO gains come after the company announced that it would accelerate its timeline for the development of a Wuhan coronavirus vaccine. The company now intends on initiating human trials as early as April of this year.
Recently, Inovio Pharmaceuticals announced that it was developing a DNA vaccine for coronavirus. The vaccine candidate is known as INO-4800. While development for any vaccine or another medical agent can take some time, the Inovio stated that it would be accelerating the process.
In fact, in the press release, INO published a timeline for the work that they are doing on the vaccine. In the schedule, the company said that it expects human trials to start around April of 2020.
Inovio said that it would be publishing results from the clinical trial in fall. More importantly, the company said that by the end of this year, it would begin to follow up tests and make the vaccine available for emergency use.
Is Inovio Pharmaceuticals (INO) Stock A Buy?
AlphaBetaStock is actively researching several coronavirus stocks that are actively working on vaccines; this includes Moderna (NASDAQ: MRNA) and Novavax (NASDAQ: NVAX) and Inovio Pharmaceuticals.
As mentioned earlier, INO is on pace to start human testing of its vaccine in April with possible approval in late fall.
Moderna (NASDAQ: MRNA) has announced the initiation of human trials, and Novavax (NASDAQ: NVAX) has announced that it has developed several candidates and that it is testing them in animals to see which will be the most viable for human testing.
As we know, the coronavirus or COVID-19 is a serious threat. The World Health Organization (WHO) has designated a Public Health Emergency.
To date, there are over 90,000 cases of the coronavirus, with more than 3,000 people dying as a result of the virus. Experts are predicting that there could be a million cases.
With only three companies seeming to have vaccines that are ready or near ready for testing and INO being one of them, there’s an excellent reason for investors to be excited here.
Would I recommend buying INO stock? Most likely not because vaccines are a precarious business. If you want to assume a high-risk coronavirus stock, look at buying Moderna. However, I think there are plenty of stocks like Clorox (CLX) that pay a good dividend that are safer plays. Read yesterday’s pick: Clorox Stock Drops. Is CLX Stock a Coronavirus Buy?
Stock Market Today
Investors are focused on the Fed’s interest rate decision. Yesterday, the regulator lowered it from 1.75% to 1.25%, which was a response to the growing economic threats from the coronavirus.
The accompanying statement said the Fed’s decision was made to support job growth. The market as a whole reacted positively to the decision of the regulator. However, many investors believe that these measures are not enough to support the economy.
It is expected that the Fed will continue to reduce the rate during the year and, according to various forecasts, reduce it by another 50 or 75 basis points. The US administration met the measure ambiguously. Finance Minister Stephen Mnuchin greeted it, and President Trump called on the regulator to speed up the easing of monetary policy.
During the day, investors are waiting for the publication of the February Nonfarm Payrolls from Automatic Data Processing. It is considered a leading indicator to federal employment data. It may decline from 291K to 170K, which may put pressure on USD.
European investors are focused on the publication of a block of vital economic statistics. The data were ambiguous. February Services PMI in Germany fell from 54.2 to 52.5 points, EU Services PMI rose slightly from 52.5 to 52.6 points.
The January data on retail sales were positive. In Germany, the indicator rose 0.9% after falling 2.0% a month earlier, and in the EU rose 0.6% after the December decline by 1.1%. However, experts note that the recovery is temporary since, in January, Europe had not yet felt the consequences of an outbreak of coronavirus.
February sales data are expected to be significantly worse. After the Fed’s statement on reducing the interest rate, such measures to support the economy are expected from the ECB soon.
The GBP is weakening against USD, is strengthening against EUR, and has ambiguous dynamics against JPY. The UK’s most crucial Service PMI was negative and declined more than expected – from 53.9 to 53.2 points.
However, these data did not put significant pressure on GBP, as investors hope that the Bank of England will take new stimulus measures soon. After the Fed cuts rates, the British regulator is also expected to reduce rates at the next meeting. Some experts, for example, analysts at Namura, consider it possible even an extraordinary emergency meeting of the regulator to mitigate monetary policy.