Inovio-Roche End Deal for Development of Cancer Therapy

Inovio Pharmaceuticals, Inc.’s (INO) shares lost 9.7% immediately after the company announced the termination of its collaboration, option and license agreement with Roche Holding (RHHBY) for the co-development of Inovio's prostate cancer candidate, INO-5150.

The companies also terminated their research collaboration for the treatment of prostate cancer. With the termination of this agreement, Inovio will regain all rights to INO-5150 including the right to license INO-5150 to other companies.

However, Inovio stated that its collaboration agreement with Roche for the co-development of Inovio's hepatitis B virus candidate, INO-1800, remains unchanged. The companies intend to advance INO-1800 to a phase I study in 2015.

Meanwhile, Inovio is working towards the development of its immuno-oncology pipeline. At the time of reporting third quarter results, Inovio stated that it expects to complete the end-of-phase-II meeting with the FDA for its cervical dysplasia candidate, VGX-3100, in 2015 and begin dosing of patients in a phase III study in early 2016.

Inovio also intends to advance INO-5150 into a phase I study in the first half of 2015. Other candidates in its pipeline include INO-3112 (head/neck and cervical cancers) and INO-1400 (breast, lung and pancreatic cancers).

Meanwhile, Inovio is evaluating partnership opportunities and currently has a partnership with MedImmune (a wholly owned subsidiary of AstraZeneca (AZN), among others.

Of late, the field of immuno-oncology has attracted the interest of several companies. Bristol-Myers Squibb’s (BMY) Opdivo is under review in the U.S. and EU for previously treated advanced melanoma with a response from the FDA expected by Mar 30, 2015.

Inovio carries a Zacks Rank #2 (Buy). Bristol-Myers Squibb also carries a Zacks Rank #2.

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