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Why Inovio Pharmaceuticals was Up 28 Percent Tuesday (INO)

Shares of Inovio Pharmaceuticals (NASDAQ: INO) were up 28 percent Tuesday presumably after a Seeking Alpha article laid out the case of why it should be acquired by Merck (NYSE: MRK).

According to the article, Merck’s oncology franchise is dwindling. It stands to lose $1 billion in annual revenue by 2015 when its brain cancer drug, Temodar and a drug to treat nausea associated with chemotherapy, Emend, lose patent protection.

Inovio Pharmaceuticals’ hTERT cancer vaccine produced favorable results that could be used to treat all forms of cancers, according to the article. That, along with it’s diverse pipeline of drugs, including an HIV vaccine, would be attractive to Merck–a company that doesn’t shy away from paying large sums for companies that it believes are up-and-coming.

[stock-tools exchange="NASDAQ" symbol="INO" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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