| 2021-04-23 08:15:34|
INO 08:15 04/23 04/23/21
Inovio sinks after Department of Defense stops vaccine trial funding
Shares of Inovio are sinking after the Department of Defense decided to stop funding the company's Covid-19 vaccine trial in the U.S. The Department of Defense Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense told Inovio that it will discontinue funding for the Phase 3 segment of the INNOVATE trial, while continuing to fund the completion of the ongoing Phase 2 segment. In correspondence, JPEO informed Inovio: "The decision results from the changing environment of COVID-19 with the rapid deployment of vaccines. This decision is not a reflection of the awardee or product, rather a fast-moving environment associated with the former Operation Warp Speed on decisions related to future products." The decision does not impact other work that Inovio does with the U.S. government and is neither a result of the partial clinical hold nor a reflection of the data generated to date for INO-4800 vaccine, the company said in a statement. The company is planning for a predominantly outside the U.S. Phase 3 trial based on upcoming evaluation of Phase 2 safety and immunogenicity data. Inovio shares in premarket trading are down 23%, or $2.13, to $7.00.