Inovio Lands Big Government Contract To Develop Ebola Vaccines

Shares of Inovio Pharmaceuticals (INO) were up 7% today after the company announced that it had been selected by the Defense Advanced Research Projects entity -- DARPA -- to receive $45 million  to expedite development of ebola vaccines. For starters, the ebola vaccine is being produced using Inovio's DNA-based monoclonal antibody product. Currently many biotech companies have developed regular monoclonal antibodies to fight against various diseases. (Monoclonal antibodies are antibodies that are all cloned from a single cell to target a particular disease.)

In the case of Inovio, the company will be using its proprietary DNA technology and combine it with these monoclonal antibodies to create a new vaccine that should provide an improved efficacy effect. 

DARPA chose Inovio for a few reasons:

1. The DNA technology together with monoclonal antibodies can be produced quickly on a large scale in case of an ebola outbreak
2. The DNA tech is stable at room temperature so it doesn't require certain storage and product can be stockpiled easily
3. Can be produced as a preventative vaccine and a therapeutic vaccine -- Vaccine can be produced for before or after an ebola outbreak

In addition to the list mentioned above, Inovio has shown just how efficacious their vaccine is against the ebola virus. Inovio reported back in May of 2013 that its DNA-based vaccine protected 100% of vaccinated animals from death and sickness after these animals had already been exposed to the ebola virus. This isn't the first time DARPA has selected Inovio for a program; DARPA also has a contract with Inovio to develop DNA-based monoclonal antibodies for Influenza -- flu virus -- and antiobiotic resistant bacteria. 

MedImmune, the global research and development arm of AstraZeneca (AZN),  will provide the Monoclonal antibodies and the Inovio - GeneOne/VGXI team will supplement the DNA based products. The contract will cover the costs for Inovio to run additional pre-clinical trials, and pay for GMP manufacturing costs and phase 1 trial costs.

Inovio has a pipeline full of other clinical candidates. Inovio is not only developing vaccines to treat diseases, but is also developing vaccines that could act as preventative measures -- to block a disease from establishing itself in the patient's body.