Today Inovio Pharmaceuticals (INO) announced that it is collaborating with MedImmune and the University of Pennsylvania to create monoclonal antibodies -- mAbs -- that may be used to treat many infectious diseases. MedImmune is the research arm of AstraZeneca (AZN​). In addition, the Defense Advanced Research Projects Agency -- DARPA -- awarded the companies $12.2 million dollars to run pre-clinical trials for drugs for certain infectious diseases. DARPA is a government body that is responsible for creating technologies that can be used to protect national security. Three pathogens that will be targeted by Inovio and MedImmune are the influenza virus, Pseudomonas aeruginosa and Staphylococcus aureus.

MedImmune's mAbs have already demonstrated success against certain diseases. Inovio has provided proof of concept of its DNA-based vaccines in the most recent results of its phase 2 trial against cervical dysplasia. Together these companies hope to create an improved version of mAbs that will help win the fight against various infectious diseases. The CEO of Inovio Pharmaceuticals, Dr. Joseph Kim, stated that the company's DNA-based mAbs have shown encouraging results in preclinical studies.

Current mAbs have many problems. The way they are manufactured is very costly and they don't have a strong, lasting effects once they are in the body. MedImmune is interested in collaborating because Inovio's DNA-based vaccine technology would allow longer-lasting mAbs to be produced at a cheaper price. 

Inovio also has a partnership with Roche (RHHBY) to work on two pre-clinical targets -- prostate cancer (INO 5150) and hepatitis B (INO1800). Roche made an upfront payment of $10 million dollars and will pay milestone payments of up to $412.5 million if certain goals are met.

We believe Inovio will make additional partnerships due to the flexibility of its technology and its potential to greatly improve mAb-based therapies. Inovio is a long-term buy.