Inovio Pharmaceuticals Reports 2013 First Quarter Financial Results

     Inovio Pharmaceuticals Reports 2013 First Quarter Financial Results

PR Newswire

BLUE BELL, Pa., May 10, 2013

BLUE BELL, Pa., May 10, 2013 /PRNewswire/ --Inovio Pharmaceuticals, Inc.
(NYSE MKT: INO) today reported financial results for the quarter ended March
31, 2013.

Total revenue was $1.5 million for the three months ended March 31, 2013,
compared to $1.7 million for the same period in 2012. Total operating expenses
were $8.1 million compared to $5.9 million. The net loss attributable to
common stockholders was $8.8 million, or $0.06 per share, compared to $8.3
million, or $0.06 per share.

Revenue

The decrease in revenue for the comparable periods was primarily due to timing
of work performed under the company's contract with the National Institute of
Allergy and Infectious Diseases (NIAID). This contract revenue amounted to
$1.0 million versus $1.5 million, respectively. This NIAID contract, which
provides up to $25.3 million of funding over seven years, is facilitating
Inovio's development of a universal, preventive HIV DNA vaccine, PENNVAX^®-GP.

Operating Expenses

Research and development expenses for Q1 2013 were $5.1 million compared to
$4.0 million for Q1 2012. This increase was primarily due to $788,000 in
higher clinical expenses related to our ongoing HPV-003 clinical trial.
General and administrative expenses were $3.0 million versus $2.5 million,
respectively.

Net Loss Attributable to Common Stockholders

The $590,000 increase in net loss for the comparable periods resulted
primarily from an increase in operating expenses offset by a lower (non-cash)
change in fair value of common stock warrants, based on a required quarterly
mark to market adjustment to reflect changes in the Company's stock price.

Capital Resources

As of March 31, 2013, cash and cash equivalents plus short-term investments
were $28.2 million compared with $13.8 million as of December31, 2012.

On March7, 2013, we closed an underwritten offering of 27,377,266 shares of
our common stock and warrants to purchase an aggregate of up to 13,688,633
shares of common stock. The shares and warrants were sold in units at a price
of $0.55 per unit, with each unit consisting of one share of common stock and
a warrant to purchase 0.50 shares of common stock at an exercise price of
$0.7936 per share. The warrants have a term of five and one-half years. The
net proceeds, after deducting the underwriters' discounts and other offering
expenses, and assuming no exercise of the warrants, were approximately $14.0
million.

During the three months ended March 31, 2013, the Company sold 8,222,966
shares of common stock under its ATM common stock sales agreement for net
proceeds of $5.6 million.

Based on management's projections and analysis, the Company believes that cash
and cash equivalents are sufficient to meet its planned working capital
requirements through the fourth quarter of 2014.

Inovio's balance sheet and statement of operations is provided below. Form
10-Q providing the complete 2013 first quarter financial report can be found
at: http://ir.inovio.com/secfilings.

Corporate Update

Clinical Development

Inovio previously reported that its SynCon® vaccine against HPV-associated
diseases (VGX-3100) achieved an industry first in its phase I clinical trial
targeting cervical dysplasias when best-in-class T-cell immune responses
generated a strong killing effect against cells targeted by this vaccine.
Based on our advanced patient enrollment, we expect to report unblinded
efficacy data from our 148-patient double-blinded, randomized phase II
clinical trial in 1Q 2014.

Inovio's SynCon® universal H1N1 influenza vaccine generated positive antibody
response rates in comparison to a current FDA-approved seasonal influenza
vaccine tested against a currently circulating influenza strain. The seasonal
influenza vaccine was matched to the tested virus strain, a requirement for
"conventional" vaccines to provide adequate protection. In contrast, Inovio's
vaccine is designed to broadly protect against multiple known and unknown
strains within a subtype such as H1N1 – the unanswered question has been
whether or not such a universal vaccine could broadly achieve protective
levels of immune responses against unmatched flu strains and whether it could
provide response rates (i.e. the number of subjects achieving protective
immune response levels) equivalent to a conventional vaccine when tested
against the virus strain matching that vaccine. This is the first
demonstration of a SynCon® influenza vaccine achieving protective equivalency
relative to a conventional seasonal vaccine while uniquely possessing the
advantage of generating protective immune responses against diverse unmatched
strains, which was also shown in this study as well as a prior study focused
on H5N1.

Inovio and its partner VGX International, Inc. will move Inovio's hepatitis C
(HCV) DNA vaccine into a phase I/IIa clinical trial by the end of 2013. The
preclinical research, which demonstrated for the first time that a
multi-antigen (NS3/4A, NS4B, and NS5A) SynCon® HCV vaccine can generate robust
T-cell responses in the liver, an organ known to suppress T-cell activity,
appeared in the peer-reviewed journalPlos Onein an article entitled:
"Induction of Intrahepatic HCV NS4B, NS5A and NS5B Specific Cellular Immune
Responses following Peripheral Immunization." VGX International is funding all
preclinical and clinical development.

Subsequent to the quarter, our collaborator ChronTech Pharma AB announced that
preliminary results from their open label phase II clinical study of their
ChronVac-C® (NS3/4A only) therapeutic HCV vaccine administered with Inovio's
MedPulser^TM-DDS electroporation device followed by a drug regimen (ribavirin
+ PEG-interferon-a) in chronic HCV positive subjects did not to date show a
statistically significant difference between treatment outcomes of the
vaccinated and non-vaccinated groups.

Based on the success of preclinical studies, the PATH Malaria Vaccine
Initiative (MVI) and Inovio announced a follow-on collaboration to advance
Inovio's malaria DNA vaccine and electroporation technology into a phase I/IIa
clinical trial in 2014. Established at PATH through an initial grant from the
Bill & Melinda Gates Foundation, MVI's mission is to accelerate the
development of malaria vaccines and ensure their availability and
accessibility in the developing world.

Corporate Development

Inovio continues to advance discussions with large pharmaceutical companies
with the goal of securing strategic partnerships to advance the development of
SynCon® vaccines.

Subsequent to the quarter, Inovio and the U.S. Army Medical Research Institute
of Infectious Diseases (USAMRIID) received a $3.5 million grant from the
National Institute of Allergy and Infectious Diseases (NIAID) to advance the
development of Inovio's next generation DNA vaccine delivery device capable of
simultaneously administering multiple synthetic vaccines via skin surface
electroporation.

Inovio was recognized with Vaccine Industry Excellence (ViE) Awards for "Best
Therapeutic Vaccine" and "Best Early Stage Biotech" at the World Vaccine
Congress. The ViE Awards recognize outstanding vaccine advancements and
achievements of vaccine developers across the global industry as judged by a
panel of global biotech industry stakeholders.

About Inovio Pharmaceuticals, Inc.

Inovio is revolutionizing vaccines to prevent and treat today's cancers and
challenging infectious diseases. Its SynCon® vaccines are designed to provide
universal cross-strain protection against known as well as newly emergent
unmatched strains of pathogens such as influenza. These synthetic vaccines, in
combination with Inovio's proprietary electroporation delivery, have been
shown in humans to generate best-in-class immune responses with a favorable
safety profile. Inovio's clinical programs include phase II studies for
cervical dysplasia, leukemia and hepatitis C virus and phase I studies for
influenza and HIV. Partners and collaborators include the University of
Pennsylvania, Merck, ChronTech, National Cancer Institute, U.S. Military HIV
Research Program, NIH, HIV Vaccines Trial Network, University of Southampton,
US Dept. of Homeland Security and PATH Malaria Vaccine Initiative. More
information is available at www.inovio.com. 

This press release contains certain forward-looking statements relating to our
business, including our plans to develop electroporation-based drug and gene
delivery technologies and DNA vaccines and our capital resources. Actual
events or results may differ from the expectations set forth herein as a
result of a number of factors, including uncertainties inherent in
pre-clinical studies, clinical trials and product development programs
(including, but not limited to, the fact that pre-clinical and clinical
results referenced in this release may not be indicative of results achievable
in other trials or for other indications, that the studies or trials may not
be successful or achieve the results desired, that pre-clinical studies and
clinical trials may not commence or be completed in the time periods
anticipated, that results from one study may not necessarily be reflected or
supported by the results of other similar studies and that results from an
animal study may not be indicative of results achievable in human studies),
the availability of funding to support continuing research and studies in an
effort to prove safety and efficacy of electroporation technology as a
delivery mechanism or develop viable DNA vaccines, the adequacy of our capital
resources, the availability or potential availability of alternative therapies
or treatments for the conditions targeted by the company or its collaborators,
including alternatives that may be more efficacious or cost-effective than any
therapy or treatment that the company and its collaborators hope to develop,
evaluation of potential opportunities, issues involving product liability,
issues involving patents and whether they or licenses to them will provide the
company with meaningful protection from others using the covered technologies,
whether such proprietary rights are enforceable or defensible or infringe or
allegedly infringe on rights of others or can withstand claims of invalidity
and whether the company can finance or devote other significant resources that
may be necessary to prosecute, protect or defend them, the level of corporate
expenditures, assessments of the company's technology by potential corporate
or other partners or collaborators, capital market conditions, the impact of
government healthcare proposals and other factors set forth in our Annual
Report on Form10-K for the year ended December31, 2012, our Form 10-Q for
the quarter ended March 31, 2013, and other regulatory filings from time to
time. There can be no assurance that any product in Inovio's pipeline will be
successfully developed or manufactured, that final results of clinical studies
will be supportive of regulatory approvals required to market licensed
products, or that any of the forward-looking information provided herein will
be proven accurate.







INOVIO PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                 March31,      December31,
                                                                2012
                                                 2013
                                                 (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents                        $  20,086,799  $  5,646,021
Short-term investments                           7,978,345      8,034,001
Accounts receivable                              1,029,158      830,433
Accounts receivable from affiliated entity       43,537         36,234
Prepaid expenses and other current assets        283,044        471,328
Prepaid expenses and other current assets from   832,494        887,167
affiliated entity
Deferred tax asset                               62,728         62,728
Total current assets                             30,316,105     15,967,912
Restricted cash                                  100,497        100,410
Fixed assets, net                                362,889        363,021
Investment in affiliated entity                  9,867,248      10,703,332
Intangible assets, net                           7,041,388      7,489,315
Goodwill                                         10,113,371     10,113,371
Common stock warrants                            266,400        267,200
Other assets                                     133,543        134,193
Total assets                                     $  58,201,441  $  45,138,754
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses            $  2,567,631   $  3,181,574
Accounts payable and accrued expenses due to     377,732        187,275
affiliated entity
Accrued clinical trial expenses                  2,199,880      1,405,896
Common stock warrants                            10,254,959     2,859,899
Deferred revenue                                 201,964        353,391
Deferred revenue from affiliated entity          376,042        388,542
Total current liabilities                        15,978,208     8,376,577
Deferred revenue, net of current portion         86,948         88,609
Deferred revenue from affiliated entity, net of  1,492,944      1,586,694
current portion
Deferred rent                                    58,349         65,076
Deferred tax liabilities                         164,393        164,393
Total liabilities                                17,780,842     10,281,349
Inovio Pharmaceuticals, Inc. stockholders'
equity:
Common stock                                     179,941        144,313
Additional paid-in capital                       278,289,806    263,897,116
Accumulated deficit                              (238,604,249)  (229,760,129)
Accumulated other comprehensive income           66,518         73,362
Total Inovio Pharmaceuticals, Inc. stockholders' 39,932,016     34,354,662
equity
Non-controlling interest                         488,583        502,743
Total stockholders' equity                       40,420,599     34,857,405
Total liabilities and stockholders' equity       $  58,201,441  $  45,138,754







INOVIO PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                                                 Three Months Ended
                                                 March 31,
                                                 2013           2012
Revenues:
License fee and milestone revenue                $ 14,259       $ 24,838
License fee and milestone revenue from           106,250        106,250
affiliated entity
Grants and miscellaneous revenue                 1,334,716      1,562,033
Total revenues                                   1,455,225      1,693,121
Operating expenses:
Research and development                         5,115,112      4,042,579
General and administrative                       2,974,153      2,488,088
Gain on sale of assets                           —              (651,000)
Total operating expenses                         8,089,265      5,879,667
Loss from operations                             (6,634,040)    (4,186,546)
Other income (expense):
Interest and other income, net                   39,460         31,544
Change in fair value of common stock warrants    (1,427,616)    (3,548,173)
Loss on investment in affiliated entity          (836,084)      (561,544)
Net loss                                         (8,858,280)    (8,264,719)
Net loss attributable to non-controlling         14,160         9,770
interest
Net loss attributable to Inovio Pharmaceuticals, $ (8,844,120)  $ (8,254,949)
Inc.
Loss per common share—basic and diluted:
Net loss per share attributable to Inovio        $ (0.06)       $ (0.06)
Pharmaceuticals, Inc. stockholders
Weighted average number of common shares         156,155,532    134,968,394
outstanding—basic and diluted


CONTACTS:
Investors: Bernie Hertel, Inovio Pharmaceuticals, 858-410-3101,
bhertel@inovio.com
Media: Jeff Richardson, Inovio Pharmaceuticals, 267-440-4211,
jrichardson@inovio.com

(Logo: http://photos.prnewswire.com/prnh/20120131/LA44118LOGO)

SOURCE Inovio Pharmaceuticals, Inc.

Website: http://www.inovio.com
 
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