Business
INOVIO Announces Corporate Reorganization to Reduce Operational Expenses and Focus on Opportunities to Bring the Promise of DNA Medicines to Patients
Changes expected to reduce operational expenses and extend the company's cash runway into third quarter of 2024Improving cost structure will allow company to
About this update from Inovio Pharmaceuticals, Inc.
[{"type":"text","content":"Changes expected to reduce operational expenses and extend the company's cash runway into third quarter of 2024Improving cost structure will allow company to focus on strategic priorities, including heterologous boost strategy for COVID-19 vaccine candidate and HPV programsPLYMOUTH MEETING, Pa., July 19, 2022 /PRNewswire/ -- INOVIO (NASDAQ: INO), a biotechnology company focused on developing and commercializing DNA medicines to help protect people from infectious diseases and treat people with cancer and HPV-associated diseases, announced that it has implemented a corporate reorganization designed to extend its cash runway and to focus on key clinical programs with the goal to drive long-term growth.\nThe reorganization, which includes an 18% workforce reduction in full-time employees and 86% reduction in contractors, along with other cost-saving measures, is expected to reduce operating expenses by approximately 30% over the next 18 months and will extend the Company's cash runway into the third quarter of 2024. These projections do not include any funds that may or may not be raised during the time period through the Company's existing ATM or other fundraising mechanisms. INOVIO expects a one-time restructuring charge of approximately $1.6 million in the third quarter of 2022.\n\"The organizational adjustments we've announced today underpin our strategy to realize the promise of DNA medicines and better position INOVIO for future growth,\" said Dr. Jacqueline Shea, Chief Executive Officer. \"By driving operational efficiencies throughout our organization, we are focused on advancing our lead pipeline candidates toward commercialization and optimizing our chances of success.\"\nINOVIO's lead programs include its heterologous boost strategy for its COVID-19 vaccine candidate, INO-4800, and its HPV-targeted programs. INOVIO expects to have data readouts from key studies that will further inform the strategic development of these leading DNA medicine assets later this year.\nDr. Shea continued: \"While we focus on near-term catalysts, we are also dedicated to improving our prioritization processes in developing our entire R&D pipeline to maximize our ability to deliver innovative products to patients around the globe over the longer term.\"\nINOVIO's DNA technology pipeline includes a number of other clinical-stage product candida...