Small caps last week: Inovio approval, Alstom guidance cut, Once Upon a Farm recall

Last week, shares of Inovio tripled after the company won U.S. approval for its first drug. Meanwhile, French train maker Alstom’s management sharply cut its full-year guidance, while Once Upon a Farm stock plunged after the company recalled toddler snacks. In addition, Freedom Finance Global analyst Georgy Timoshin spotlighted three defensive stocks amid the tech rout. These stories headline Oninvest’s small-cap recap for November 2-6.

Inovio Pharmaceuticals shares surged 214% on Monday to $1.89 apiece. The U.S. Food and Drug Administration granted accelerated approval to VOCERYQ, an immunotherapy that helps reduce the frequency of surgery in adults with recurrent respiratory papillomatosis. The rare HPV-linked disease causes growths called papillomas to form in the airways, requiring surgical removal.

Seven of the 26 patients whose data was used to evaluate efficacy needed no further surgery in the year after treatment. Inovio plans a full commercial launch in the first quarter of 2027. The drug already has a competitor, Precigen’s Papzimeos, which was approved in 2025. Later in the week, on Thursday, Inovio announced plans to issue new shares.

The Nasdaq Composite fell 5.5% on Thursday. The AI stock selloff thus intensified after Democrats swept the U.S. midterm elections, with investors fearing restrictions on data center construction. Against this backdrop, Freedom Finance Global analyst Georgy Timoshin picked three stocks outside of the tech sector, each with its own catalysts for growth.

For one, nut and snack maker John B. Sanfilippo & Son, the investment case centers on contract manufacturing and a recovery in margins. For another, real estate investment trust Saul Centers, it rests on high shopping center occupancy and dividends. For the third, Inogen, a maker of portable oxygen concentrators, the focus is on growing international sales and expanding its partner network.

Shares of organic baby food maker Once Upon a Farm, whose cofounders include actress Jennifer Garner, fell 37% on Monday to $9.44 apiece. The company recalled its Tractor Wheels bars because of a choking hazard. The FDA reported incidents in which children aged 18 to 30 months experienced airway blockages, with some requiring emergency intervention.

Tractor Wheels accounted for around 18% of the company’s net sales year to date. Once Upon a Farm is still assessing the recall costs and potential insurance recoveries. BofA downgraded the stock to “underperform” from “buy” and cut its target price to $10 from $21 per share, fearing the recall could undermine parents’ trust in the brand as a whole.

Alstom shares fell around 30% in Paris over Monday and Tuesday. Because of problems with train production and certification, the management now expects to produce around 4,000 railcars in fiscal 2026-2027, versus 4,400-4,500 previously. It lowered its adjusted operating margin guidance to around 1% from 6.5%. The management now expects a free cash outflow of around EUR1.5 billion, having previously forecast positive free cash flow.

Following the guidance revision, JPMorgan downgraded the stock to “neutral,” while Citi cut its rating to “neutral/high risk.” The banks lowered their target prices to EUR15.60 and EUR14 per share, respectively.