Inovio Pharmaceuticals(US:INO)2022-08-10 00:30Financial Data and Key Metrics Changes - The company finished Q2 2022 with $348.1 million in cash, cash equivalents, and short-term investments, down from $360.4 million as of March 31, 2022 [23] - Total revenue for Q2 2022 was $784,000, compared to $273,000 for the same period in 2021, reflecting an increase due to the delivery of proprietary smart devices related to a contract with the U.S. Department of Defense [24] - Total operating expenses were $104.9 million for Q2 2022, up from $83.5 million in Q2 2021, with a net loss of $108.5 million or $0.46 per share, compared to a net loss of $82.1 million or $0.39 per share in the prior year [25][27] Business Line Data and Key Metrics Changes - Research and development expenses decreased to $56.5 million in Q2 2022 from $70.8 million in Q2 2021, primarily due to lower expenses related to manufacturing equipment acquisition [26] - General and administrative expenses increased significantly to $48.5 million in Q2 2022 from $12.7 million in Q2 2021, largely due to a $26 million increase in legal expenses [27] Market Data and Key Metrics Changes - The company is focusing on advancing its COVID-19 vaccine candidate INO-4800 and HPV-related product candidates, particularly INO-3107, which are seen as having the most potential for reaching the market soon [40][41] Company Strategy and Development Direction - The company is restructuring to align with product development goals, including an 18% reduction in full-time workforce and an 86% reduction in contractors, aiming for a 30% reduction in operating expenses over the next 18 months [8] - The strategic focus remains on advancing product candidates that are closer to market, particularly in the areas of HPV and COVID-19 [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of INO-4800 as a heterologous booster, highlighting its ability to elicit immune responses against multiple variants of concern [35][41] - The company is awaiting data from the REVEAL 2 trial for VGX-3100, which will inform future steps for the program [44][58] Other Important Information - The company anticipates a cash burn of approximately $73 million for Q3 2022, with projections extending the cash runway into Q3 2024 [30] - The proposed settlement of a class action lawsuit is expected to involve a $30 million cash payment and $14 million in common stock, pending court approval [28][29] Q&A Session Summary Question: Can you talk about how your COVID strategy has evolved? - The company continues to monitor market factors and believes that heterologous boosters may provide broader protection against variants, positioning INO-4800 as a significant candidate [35][36] Question: What are some surprises and challenges you've encountered? - The focus has been on realigning resources to advance product candidates with the most market potential, particularly in HPV and COVID-19 [40] Question: What kind of data are you looking for in the REVEAL 2 trial? - The company hopes to meet predetermined efficacy and safety endpoints, which will guide the next steps for VGX-3100 [44] Question: What are the next steps for the GBM program? - The company is encouraged by the survival data and is in discussions with partners about future steps [46] Question: What are the regulatory requirements for INO-4800? - Discussions with regulators are ongoing, and specific country names cannot be disclosed at this time [50] Question: Can you provide an update on CELLECTRA device utilization? - The company is using multiple devices for different clinical trials, including the 5PSP and CELLECTRA devices [51] Question: What is the market sizing for MERS, Lassa fever, and Ebola? - The company plans to provide updates on these clinical programs later in the year, emphasizing their global implications [52] Question: Is INO-3107 on track to report results by the end of the year? - Yes, the company anticipates sharing results from the Phase I/II trial in the second half of the year [54]