Investment lessons from Inovio.

It was believed at one time that the "genome" (the total sequence of all our proteins) would give us an insight into  cancer and other genetic diseases. Much has been learned along the way, both in terms of science and also investing. Here are some of what we learned:

1. The human genome contains some 25,000 genes (each gene codes for a protein), but there are many other factors that determine the final individual.

2. There are too many genes that are associated with cancer. Hard to pick one to blame.

3, Cancer cells become 'immortal' and do dot undergo cell death(apoptosis) as normal cells do. A novel anti-cancer drug promised a cure by restoring normal cell death. Aptosin would inhibit the breakdown of cyclic GMP and this would allow cancer cells to die. It worked in tissue culture and mice. Unfortunately, it did not work in humans.

And here we come to Inovio and its proposed cancer cures. Inovio is working on cures where the cause of cancer is a virus. They inject pure viral DNA by electroporation. A small current makes the skin permeable to the DNA without having to use a needle. Inovio is targeting cervical cancer that is caused by the papillary virus. The first study ( a proof of concept study) used 18 subjects. All eighteen developed a response against the virus and 14 had increased T cells. A larger study is under way and we should have results within a month, maybe two. The stock has been on a tear and last Friday it traded 20M and was up 11%. Do some people know something or just guessing?

The Company is funded till 2016. The downside? The FDA says NO. Or, the FDA requires a large study that may last too long.