This company has made $208 million since the dawn of the outbreak
Inovio Pharmaceuticals, a company that has existed for four decades without developing an approved product, has made $208 million thanks to a coronavirus vaccine that hasn’t been tested on humans.
According to the company’s latest financials, it sold more than 43 million shares between Jan. 1 and March 11. Issuing that many new shares is usually bad for a company’s valuation, as it dilutes existing investors. But Inovio did it through an at-the-market agreement, or ATM, which is a pre-existing deal that lets the company mete out new stock to investment banks that then sell it on the open market. Companies tend to be wary of hitting ATMs too hard, mindful of the dilution issue, but thanks to the coronavirus outbreak, Inovio’s stock price has more than tripled since the start of the year.
Now that the $208 million has changed hands, there’s no money left in Inovio’s at-the-market agreement, the company said. In the meantime, Inovio is sticking by its promise to start a clinical trial of its coronavirus vaccine in April, and CEO Joseph Kim has told investors — and President Trump — that his company will be able to manufacture 1 million doses by the end of the year.
According to the company’s latest financials, it sold more than 43 million shares between Jan. 1 and March 11. Issuing that many new shares is usually bad for a company’s valuation, as it dilutes existing investors. But Inovio did it through an at-the-market agreement, or ATM, which is a pre-existing deal that lets the company mete out new stock to investment banks that then sell it on the open market. Companies tend to be wary of hitting ATMs too hard, mindful of the dilution issue, but thanks to the coronavirus outbreak, Inovio’s stock price has more than tripled since the start of the year.
Now that the $208 million has changed hands, there’s no money left in Inovio’s at-the-market agreement, the company said. In the meantime, Inovio is sticking by its promise to start a clinical trial of its coronavirus vaccine in April, and CEO Joseph Kim has told investors — and President Trump — that his company will be able to manufacture 1 million doses by the end of the year.
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