Approval of Inovio Pharmaceuticals’ (NASDAQ: INO) first drug opens the company’s path to commercial sales, but after the sharp rally investors should not rush to buy, says Freedom Broker analyst Vladimir Chernov. In his view, further performance of the stock will depend on demand for VOCERYQ, and in the near term the risk of profit-taking is high.
Inovio is a U.S. biotechnology company developing DNA-based medicines to treat human papillomavirus-related diseases, as well as oncology and infectious diseases. Its technology helps the body’s cells produce proteins needed to form an immune response. VOCERYQ is the company’s first approved drug.
What drove the stock’s rise
As Oninvest reports, Inovio shares were up about 240% following a decision by the U.S. Food and Drug Administration (FDA).
The regulator granted accelerated approval to VOCERYQ to reduce the frequency of surgeries in adults with recurrent respiratory papillomatosis. This is a rare disease in which benign growths form in the airways, often requiring repeated surgical removal.
According to an Inovio statement, a full commercial launch is planned for Q1 2027. The company expects to begin taking orders and making shipments earlier—about 60 days after approval.
Investors now have to assess sales
Chernov views the FDA decision as a significant step for Inovio after years of development. However, approval alone does not yet guarantee sustainable revenue growth or a move into profitability.
The drug is intended to treat a rare disease and already has a competitor. Therefore, the size of the addressable market and the company’s ability to attract patients will be crucial for future financial results.
Additional uncertainty is tied to the conditions of accelerated approval. Continued authorization may depend on confirming clinical benefit in an additional study. The company must submit a draft of its protocol by the end of 2026.
Why caution is needed after the price spike
In Chernov’s assessment, the rapid share-price increase has already priced in a significant portion of the optimism around the regulatory decision. The next confirmation of the business outlook should come from the results of VOCERYQ’s commercial launch.
Until sales data emerge, the shares may remain volatile. Investors who bought the stock ahead of approval may begin taking profits, adding pressure to the price. Therefore, the analyst does not view the sharp jump as sufficient grounds to buy at current levels.
This is not an individual investment recommendation.