Shares of biotech company Inovio soared 240% following the drug's approval. Is there still upside potential?

Shares of the micro-cap biotech company Inovio Pharmaceuticals soared 260% in premarket trading on November 2. The company announced that the U.S. Food and Drug Administration (FDA) had approved its drug under an expedited procedure for the treatment of a rare respiratory disease associated with the human papillomavirus (HPV). Wall Street believes the stock still has room to grow.

Inovio's stock price surged by nearly 240% in premarket trading on November 2, reaching $1.99.

The rally began after the company announced that: the U.S. regulatory agency had approved, under an accelerated procedure, its immunotherapy VOCERYQ for adults with recurrent respiratory papillomatosis (RRP), a rare disease of the larynx and airways caused by HPV. This condition causes papillomas to constantly form in the larynx, which must be surgically removed. The biotech company’s drug essentially trains the human immune system to recognize and destroy cells infected with HPV types 6 and 11.

Inovio tested the drug on 32 patients who, prior to receiving it, had undergone at least two surgeries within the past year. To assess the drug’s effectiveness, data were used from 26 participants who, prior to treatment, required at least three surgeries per year. Seven of them—27%—did not require any new surgeries during the year following treatment.

According to information on its website, VOCERYQ has thus become Inovio’s first approved drug. Ten more of its products are in various stages of clinical trials, and four have not yet progressed to human testing.

The company plans to begin shipping the drug in about 60 days, with a full-scale commercial launch scheduled for the first quarter of 2027, according to the press release.

Inovio also announced that it is conducting a study to confirm the efficacy of VOCERYQ—the FDA has required the company to submit a draft protocol by the end of 2026, with the aim of finalizing it by mid-2027.

Following this news, shares of Inovio’s competitor, Precigen—which received approval for its treatment of recurrent respiratory papillomatosis in 2025— plummeted by nearly 20% in premarket trading on November 2.

Since the beginning of the year, Inovio's stock price has fallen by 65%. The biggest drop occurred on April 2—after the company announced plans for a stock offering.

Three Wall Street analysts are tracking the biotech company’s performance: two recommend buying its stock, and one recommends holding it. The average price target is $3.17, which represents an upside potential of more than 426% relative to the closing price on October 30.