Tomahawk, WI 8/26/2013 (BasicsMedia) – Inovio Pharmaceuticals Inc (NYSE:INO) is currently working on developing new vaccines which will hopefully prove quite beneficial top people afflicted with cancer and other highly infectious diseases. The company seeks to carry this out using its very impressive SynCon technology. Some of the products it has developed have been used to vaccinate people against influenza and HIV. While other biotech companies haven’t fared too well with their oncology research and vaccines as well as other products, INO seems to be on the right path, which may bring several millions of dollars into its coffers thus rewarding investors.

INO’s Immunization Programs Carry Huge Potential

INO has been quite consistent in the approach it has taken regarding its immunization trials. This offers a much better outlook than what the industry had experienced with its fellow competitors such as Merck. But this piece of information must be examined objectively. It is worth mentioning that the company recently published financial results point to the fact that its profit margins are quite inconsistent. Such scenarios are now what investors want to be associated with companies which they have invested in. A number of analysts are of the opinion that this company ahs failed miserably with its profit margins.

However, when you focus your attention on comparing the sales and EPS between the recent financial results for the latest quarter with those for the same period in 2012, I would give this company a pass. Its performance can’t be described as stellar, but it is still good enough to give it a better foothold through which to move forward. Its cash flow hasn’t been what would ordinarily be expected of a company of its stature. It hasn’t impressed when it comes to insider holdings as well. As a stock, it is relatively strong, but it has to translate this into a more consistent performance and financial showing going forward.

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INO Still Enjoys Good Sales

Despite all of the above, the company continues to post good sales. While its sales hover in the $500 million mark, this has the capacity to improve significantly if the latest research it is carrying out become successful. It could potentially see an increase in its revenue from sales shooting up to more than $1 billion primarily from the cancer vaccine. It reported sales of around $4.2 million, but with time this will pick up as INO brings more products into the market. It hasn’t done very well in terms of issuing more shares to the public, thus undervaluing the ones already in the market, which isn’t good for investors.

INO’s account receivable to sales percentage has to be worked on. Currently, this percentage is at 21.12%, which is a significant increase on the 5.20% reported in 2012. However, it still much lower than the figure of 30% which is to be expected from companies with a relatively small market cap such as Inovio Pharmaceuticals. The company has to do a lot of work in order to prove that it is a worthy investment to its shareholders. It has to work on improving its cash flow, so that it becomes a generator rather than a consumer of the same. I believe these are the factors making INO appear very inconsistent.

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