iBio IBIO Stock News

iBio Inc (NYSEAMERICAN: IBIO) is making a run for the top in the market this morning, trading on double-digit gains prior to the opening bell. If you’re digging for press releases or SEC filings, you’re not going to find anything. Nonetheless, there’s a good reason for the gains.

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Why Is IBIO Stock Headed Up?

It seems as though the cause of the gains in iBio is an article that was written for the purpose of bringing the stock down. The article, pulbished in InvestorPlace, outlined the fact that while the company is working on two vaccines, niether has made it out of preclinical stages as of yet.

Moreover, the article pointed to the company’s agreement with Planet Biotechnology. However, if it was intended to turn investors off, it missed the mark, especially when talking about this agreement.

In the article, the author pointed out that IBIO has partnered with Planet for the development and commercialization of ACE2-FC, a plant based enzyme that blocks the spike protein the coronavirus gets its name from.

The article didn’t outline much about this potential therapeutic option. All the author had to say about it was that if its a plant-based therapeutic, IBIO may be interested in making it.

Nonetheless, regardless of the InvestorPlace article, iBio stock is one to pay close attention to, for several reasons:

  • Vaccines. First and foremost, as pointed to in the InvestorPlace article, IBIO is working on two vaccine candidates, designed to stop the spread of COVID-19. While these candidates haven’t made it out of preclinical testing, there’s something that the InvestorPlace article had wrong. There is plenty of time to make money in vaccines. The fact of the matter is that science and coronaviruses throughout history tell us that COVID-19 will be a long term issue that requires multiple vaccine and therapeutic options, suggesting that even if it takes a couple of years, the company’s COVID-19 vaccine candidates may be highly valuable.
  • Treatment. On top of the work the company is doing on the vaccine side of the equation, the treatment option the company partnered with Planet on is a big source of value. There are several vaccines under development, but only a few treatment options. Should this treatment option be effective, it represents a very profitable opportunity in the long run.
  • FastPharming Facility. Finally, IBIO owns the FastPharming Facility, which wasn’t necessarily relevant until the COVID-19 outbreak. The facility was developed to house the ability to produce vaccines, therapeutics, and biological agents at a lightning-like pace in the face of a pandemic. As a result, even if its vaccines and treatment options wet the bed, there’s quite a bit of value in the manufacturing power at the FastPharming Facility.

The Bottom Line

The naysayers on IBIO are looking at a short term time horizon, suggesting that the COVID-19 pandemic will be over before we know it. However, throughout history, coronavirus strains have proven to be hardy and very difficult to get rid of. As a result, there are likely several years of this virus to contend with, opening the door to a much longer time horizon than many believe.

For IBIO, that’s great news. The company surely isn’t going to be the first to bring a vaccine or therapeutic option to market, but that’s OK, it has plenty of time to work that out and still offer a compelling opportunity to investors.

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