iBio (IBIO) Stock Continues Skyward: More Gains To Come!

iBio Inc (NYSEAMERICAN: IBIO) is having yet another strong start to the trading session in the premarket hours, following up on the strong gains that we saw from the stock yesterday. However, if you’re digging for press releases or SEC filings from the company, you’ll be hard-pressed to find anything.

So, what’s going on?

IBIO stock recently hit the limelight yet again after an emergency use authorization suggested that convalescent plasma could prove to be an effective treatment for patients with COVID-19. Nonetheless, that’s just one of many reasons to be excited here.

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There Are Several Reasons To Be Excited About IBIO Stock

As mentioned above, iBio went on a bit of a run for the top yesterday, gaining around 30% after the FDA gave the emergency use nod for a convalescent plasma treatment for patients with COVID-19.

What does that have to do with IBIO?

Well, the company has been working with convalescent plasma for nearly a decade. In fact, way back in 2011, the company announced that it had successfully produced human plasma protein. But the idea that IBIO may have a potential COVID-19 treatment option up its sleeve is just one of many to be excited about the stock.

Here are three, just off of the top of my head:

#1. Multiple Vaccine Candidates

If you think iBio only works on the treatment side of the coin, you haven’t been following the stock. In fact, it was one of the first companies to announce that it was working on a vaccine for the coronavirus that causes COVID-19 under a partnership agreement with CC-Pharming.

Since the partnership announcement, the company said that it was working on a second COVID-19 vaccine candidate. Of course, the more candidates you have in the fray, the stronger chance there is that one of these vaccines will prove to be effective. With multiple vaccines candidates under development, IBIO is a very important player in the COVID-19 vaccine space.

#2. The FastPharming Facility Is A Key Competitive Advantage

Another thing iBio has going for it is the fact that it is the owner and operator of a building known as the FastPharming Facility. Commissioned by government funding, the FastPharming Facility was developed specifically for the quick manufacturing of vaccines and other biological agents in the midst of an epidemic, or a pandemic, like the one we face today.

Other companies working on vaccines and treatments are ultimately at the mercy of outside manufacturers. Capacity and other issues can lead to delays. However, should IBIO bring a vaccine or treatment candidate to market, it will manufacture them at the facility that has the ability to safely produce massive amounts of doses faster than just about any other facility in the United States or around the world.

#3. COVID-19 Isn’t Going Anywhere Any Time Soon

I know it may be scary to think this, but the fact of the matter is that COVID-19 isn’t going away any time soon. Sure, there are vaccines that news suggests will be ready by the end of the year, but there are a few things that you need to keep in mind:

Vaccines Aren’t Always Effective. Vaccines aren’t 100% effective. If that was the case, we would have irradicated the flu long ago. Not only do some patients not respond to vaccines, many people decide not to get them, putting loopholes in the vaccine to irradicate theory.
Vaccines Won’t Last Forever. The coronavirus causing COVID-19 is akin to the coronavirus that causes the common cold. We’ve learned a lot of things from the cold. In particular, immunity to a coronavirus doesn’t last forever. That’s why every few years, you end up coming down with the common cold. The coronavirus that cuases COVID-19 is likely to be very similar.
There’s Need For Multiple Vaccines. Considering the differences in the population around the world, it’s not likely that a single vaccine candidate will be the perfect option for every living, breathing, human on earth. There will likely be a long-term need for multiple vaccine options.

All of this bodes well for IBIO. Sure, the company isn’t going to be the first to bring a vaccine to market unless some miracle happens, but it doesn’t have to be. The fact of the matter is that COVID-19 is likely to be a long-term issue, one that comes up every year and that we live with like the flu or the common cold. As such, the opportunity here should be looked at as a long-term one in which many companies can win, not necessarilly a race to be the first to a vaccine that will irradicate the issue.

Not only is IBIO working on the development of two different vaccine candidates, it has a long history in work surroundng convalescent plasma, which could give it a foot in the door with regard to development of treatment options.

The Bottom Line

The bottom line here is that IBIO stock should be on your watchlist. There are several companies working within the COVID-19 space. Most are either developing a vaccine or a treatment, few have the ability to do both.

This combined with the long-term opportunity brought about by COVID-19, the company’s ownership of the FastPharming Facility, and multiple potential revenue drivers ahead, IBIO is a stock that should be watched very closely.