iBio (IBIO) Stock: Don’t Give Up On This One Yet!

iBio IBIO Stock News

iBio Inc (NYSEAMERICAN: IBIO) is having a rough start to the trading session this morning, following up on the declines that we saw in the stock yesterday. However, these declines my prove to be a discounted opportunity to get in on potentially strong gains ahead. Don’t give up on the stock just yet. 

Below, we’ll talk about the bearish argument, the bullish argument, and why IBIO stock represents what I believe to be a strong opportunity for long-run growth. 

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What The Bears Say About IBIO Stock

While I believe IBIO represents a strong long-run opportunity, there are plenty of naysayers out there that believe the stock is going to fall further. Their argument is simple.

While the bears do recognize that the company has multiple vaccine candidates under development, they argue that the company is playing a too little too late story. The fact of the matter is that several big-name pharmaceutical comapnies are working on vaccines and are far down the line of development. 

In fact, there’s a insinuation that one or two of them may have a vaccine hit the market with massive amounts of doses available by the end of the year. With that said, the bearis argument is simple.

The bears argue that IBIO simply won’t be able to get a vaccine to market fast enough to compete with the big dogs that are far ahead of the company. As such, the millions being spent on development are essentially millions of wasted dollars and the stock is going to see massive declines ahead. 

It’s a simple argument, and it makes sense… that is, if you don’t think about it!

There’s One Big Issue With This Argument

The bearish argument makes a huge prediction that is most likely incorrect. According to the bearish argument, we’re going to have a vaccine on the market by the end of the year, and that vaccine will be so effective that it will eradicate COVID-19. As such, only one vaccine will ever prove to be necessary, and therefore profitable. 

That’s a huge statement, and it’s most likely false. 

The fact of the matter is that the virus that cuases COVID-19 is a coronavirus, the same family of viruses that cuases the common cold. If creating an effective vaccine that could eradicate these types of viruses was that easy, wouldn’t we have already gotten rid of the common cold?

Human immuity to coronavirus strains only lasts a short period of time. That’s why every few years, you find yourself with the cold. It’s no fun, but you know that once you get through it, it will be a while before you get sick with another cold, thanks to your inate immune system. 

Based on this trend, a vaccine, even if it is effective, would likely only last for a year or two before the patient would need another dose. So, COVID-19 isn’t likely to be irradicated by the end of the year and there will likely be a long-term need for MULTIPLE vaccine and treatment options. 

The Bullish Argument On IBIO

The bullish argument on IBIO is also a simple one, and in my opinion, far more reasonable. The argument is that COVID-19 is going to be here for the long haul and different consumers will require different styles of vaccines to combat the issue. As such, there will be a long-term need for effective vaccine options. 

Moreover, the company has two candidates under development, and thanks to the FastPharming Facility, it has the ability to manufacture mass quantities of its vaccines as soon as they receive regulatory approval. 

Moreover, the company may quickly become a COVID-19 treatment play. Earlier this week, there was news that convalescent plasma may be effective in the treatment of COVID-19 symptoms. Well, IBIO has been working in the convalescent plasma space for about a decade, and could easily shift to the creation of a treatment candidate, opening the door to yet another opportunity. 

The Bottom Line

The bottom line here is that the bears take all of the value away from IBIO, saying that when the first company brings a vaccine to market, COVID-19 will be behind us. Well, that sounds great, but the science doesn’t say that following the creation of a vaccine, we’ll see nothing but butterflies and rainbows. 

The reality is that COVID-19 is an issue that we’re likely going to have to deal with for some time to come. It is one that’s going to require the availability of multiple vaccine and treatment options to keep under control, and the market is likely to be massive. 

With IBIO’s advantages in manufacturing and the fact that it has multiple vaccines under development and has the ability to use its experience to launch a treatment candidate, the stock is one that should not be discounted!

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