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Better Buy: Inovio Pharmaceuticals, Inc. vs. Incyte Corporation

VGX-3100 approach. Image Source: Inovio

However, Zika isn't the only opportunity for Inovio. The company's lead product, T-cell activating immunotherapy VGX-3100, will begin a phase 3 clinical trial in 2016. VGX-3100 appears to be a very promising non-surgical treatment for cervical dysplasia. Analysts project that, if approved, the drug could eventually generate around $500 million in peak annual sales.

Don't discount Incyte's potential beyond Jakafi and baricitinib, though. The biotech's first-in-class IDO1 inhibitor, epacadostat, should enter phase 3 testing in the first half of this year as a first-line advanced or metastatic melanoma treatment in combination with Keytruda. Barclays analyst Geoff Meacham thinks epacadostat could hit peak annual sales of over $6 billion.

Most bang for the buck

So which of these two biotechs gives more bang for the buck? I think the nod goes to Incyte.

Inovio certainly has a lot of potential. The company could very well win the race to develop an effective Zika vaccine. I also think that VGX-3100 stands a good chance at meeting or even exceeding expectations.

However, I like Incyte's prospects for baricitinib and epacadostat. And despite the big hit that cancellation of the solid tumor development program will have, Jakafi should continue to be a winner for Incyte. My view is that the current diverging trajectories of these two biotech stocks is only temporary. I expect both could be winners over the long run, but I think Incyte claims the greater odds for success.

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The article Better Buy: Inovio Pharmaceuticals, Inc. vs. Incyte Corporation originally appeared on Fool.com.

Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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