Inovio Pharmaceuticals Inc (NASDAQ:INO) stock is the most active biotech stock loser in the pre-open session on Friday as investor seems unpleasant after the Department of Defense decided to stop funding the company’s Covid-19 vaccine trial in the U.S.
The Department of Defense Joint Program Executive Office for Chemical, Biological, Radiological, and Nuclear Defense told Inovio that it will discontinue funding for the Phase 3 segment of the INNOVATE trial while continuing to fund the completion of the ongoing Phase 2 segment.
JPEO informed Inovio: “The decision results from the changing environment of COVID-19 with the rapid deployment of vaccines. This decision is not a reflection of the awardee or product, rather a fast-moving environment associated with the former Operation Warp Speed on decisions related to future products.”
There is no doubt that it’s negative and investors are feeling panic after the news.
However, one should note that this halt in funding will not impact other work that Inovio does with the U.S. government and is neither a result of the partial clinical hold nor a reflection of the data generated to date for INO-4800 vaccine, the company said in a statement.
Moreover, the company announced that it is planning for a predominantly ex-U.S. Phase 3 trial for its COVID-19 vaccine candidate, INO-4800.
INO stock slumped 25% to $6.86 in pre-market session in heavy trading and set to open at a new 52-week low.
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