Inovio Stock is a small, global maker of inovia, a biofuels, bioregenerative and renewable energy technology.
Inovios is the largest biofuel producer in Africa and Europe, with a production capacity of 5.2 million tonnes a year.
In November 2018, Inovias stock dropped about 2% to $7.49 per share.
Inovio’s shares also traded at a loss last year, and are now trading at $3.84.
It has been trading below its 2016 high of $11.84, according to FactSet.
Last year, Intersil, another small biotech company in Nigeria, also announced a plan to spin off its biotech arm.
Intersilets stock has fallen to $1.60.
This week, Invesco announced plans to spin-off its biotech division into a subsidiary called Invesc, which will focus on developing advanced biotechnology solutions.
The spin-offs aim to create an “innovative, high-impact, and high-value business,” according to a statement.
The stock has been surging, with shares having risen by more than 2,000% over the past year.
While Invescor is an exciting move for investors, it is a riskier one for the company, according a recent research note by Credit Suisse.
It points out that Invescare is an older company that has experienced problems with the global food and pharmaceutical markets.
Invescom’s stock has also been in the red for the past two years.
“Invesco’s spin-up is not necessarily a great deal for Invesio stock because of the high-cost of capital and limited scale of the business,” Credit Suise wrote.
“Invesc is likely to have more limited scale than Invesico, which has a larger portfolio of investments, is better positioned to capitalize on the potential synergies, and has the benefit of leveraging its existing brands.”
