Shares of Inovio (INO) are spiking higher after the company announced the publication of results in a major cancer journal, from a study of MEDI0457.

TREATED WITH MEDI0457: According to an earlier statement from Inovio, a paper published in a major cancer journal detailed results of a patient with head and neck cancer treated with MEDI0457 achieved a sustained complete response on treatment with a subsequent PD-1 checkpoint inhibitor. In the Inovio-sponsored study of 22 patients with head and neck squamous cell carcinoma, the company reported 91% showed T cell activity in the blood or tissue. MEDI0457 -- formerly called INO-3112 -- was in 2015 licensed to MedImmune, the global biologics research and development arm of AstraZeneca (AZN). These immune data, as well as the financial terms of the license agreement, have been previously reported by Inovio. 

STUDY SUPPORTS HPV AND ONCOLOGY PROGRAMS: Inovio CEO Dr. J. Joseph Kim said, "We are buoyed by the study as it lends support to all of our HPV and oncology programs. These data demonstrated that Inovio's technology based in MEDI0457 can generate durable HPV16/18 antigen-specific peripheral and tumor immune responses. The study supports our belief that this approach may be used as a complementary strategy to PD-1/PD-L1 inhibition in HPV-associated head and neck and other types of cancer to improve therapeutic outcomes. Inovio is collaborating with MedImmune as well as Genentech (RHHBY) and Regeneron (REGN) in efficacy trials coupling Inovio's DNA-based cancer immunotherapies with checkpoint inhibitors designed to increase response rates with data expected in 2019". 

ANALYST RAISES PRICE TARGET: Stifel analyst Stephen Willey resumed coverage of Inovio with a Buy rating and $8 price target, citing his favorable view of the clinical risk underlying the ongoing Phase 3 VGX-3100 development program in patients with HPV+ cervical HSIL. He sees the company's earlier-stage immuno-oncology development efforts and externally-funded infectious diseases programs as additional sources of longer-term upside.

PRICE ACTION: Shares of Inovio Pharmaceuticals are up over 16% to $6.22 per share in afternoon trading.