The coronavirus pandemic may have led to a historic collapse in the stock market, but from certain stocks, the situation has been different. Companies involved in developing coronavirus related products have experienced significant bumps in their stock prices, and one such company is Inovio Pharmaceuticals Inc (NASDAQ:INO).
INO Stock is Up 120% This Year
The stock has recorded gains of as much as 120% over the course of the year so far after it emerged that Inovio is working on developing a DNA based coronavirus vaccine. The company has also gone into a partnership with Ology Bioservices to develop the vaccine, and Phase 1 testing for the same is expected to commence later on in April.
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However, anyone who is interested in investing in the Inovio stock needs to keep certain things in mind. First and foremost, there are other companies who are also working on developing vaccines for the coronavirus. Hence, it is a race among many companies, and the ones who get there first are going to see significant upside. On the other hand, the rationale behind an investment in Inovio is binary in nature. Either the company will be successful or if it will fail. However, in the second instance, the price of the stock could go to the levels it was trading at prior to the coronavirus crisis.
In its initial rally, the stock had soared from $4 to $20 within a matter of days, but since then, it has grown steadily, and in fact, it has recorded declines of 50% since hitting its highs in March. While it has become abundantly clear that the DNA based coronavirus vaccine could be massive for Inovio, it should be noted that the company has other products in the pipeline as well. One of the more interesting products in its pipeline is the VGX 3100, which is immunotherapy for those suffering from anal dysplasia. Investors could watch the proceedings closely before coming to a decision.