iBio Inc (NYSEAMERICAN: IBIO) is having a strong start to the trading session in the market this morning after announcing that it has expanded a collaboration. As a result of the expanded collaboration, the stock is trading on gains of more than 20% early on. Here’s what’s going on:
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IBIO Stock Gains On Collaboration News
In a press release issued early this morning, iBio said that it has expanded the scope of its collaboration with CC-Pharming. As a result of the expansion, the company will be granting an exclusive, royalty-bearing commercial license to its bio-better rituximab (iBIO Rituximab) product candidates to CC-Pharming for the China territory.
IBIO said that it will also grant CC-Pharming a research license to its FastPharming System and expertise for the evaluation of multiple product opportunities. The company’s bio-better rituximab is a formulation of a drug (rituximab) that was first approved in 1997.
Since, the drug has seen label expansions in both the oncology and autoimmune disease settings, seeing incredible success. In fact, it was ranked one of the top selling drugs in 2018 and is Roche’s second-biggest selling drug in China.
IBIO has an asset, known as its FastPharming System, that is being used to develop its formulation of Rituximab. Under the terms of the agreement, CC-Pharming will be responsible for the development, regulatory and commercial activities surrounding the product in China.
Moving forward, IBIO and CC-Pharming intend on working to develop additional products for the Chinese market. In particular, the two will work to develop non-pharmaceutical skincare products and botanical derivatives. The companies will also work to develop additional biopharmaceutical products in oncology, metabolic disorders and fibrotic disease.
In a statement, Robert B. Kay, Chairman and CEO at IBIO, had the following to offer:
We believe this is an important strategic relationship for both parties: it enables us to participate in the vast Chinese market using our existing assets, while CC Pharming uses our technology to provide China’s massive population with access to cost-effective critical drugs. The expanded scope of our partnership with CC-Pharming aims first to advance our plant-derived, bio-better rituximab toward commercialization in the near term, while we jointly explore opportunities to develop and commercialize additional high value products.
Why This Is A Big Deal
The expansion of the partnership between iBio and CC-Pharming is big news for multiple reasons. First and foremost, CC-Pharming has a strong footprint in China. Therefore, its reach in the region could lead to strong sales, generating incredible royalty revenues for IBIO and its investors in the long run.
Moreover, the two companies are working on several products, not just the one! This is important to remember. In particular, there’s real value potential in the non-pharmaceutical skincare market in China. Should the expanded relationship lead to an entrance in this space, it could lead to strong growth of value for IBIO ahead.
All in all, the expanded agreement only sets the stage for strong, positive catalysts ahead. So, keep your eyes peeled as the opportunity here continues to grow!
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