iBio (IBIO) Stock Is Up: Here’s What’s Going On

iBio IBIO Stock News

iBio Inc (NYSEAMERICAN: IBIO) is making a run for the top in the market this morning, trading on gains of more than 6% early on. While the stock is up, it hasn’t issued any press releases or SEC filings. So, what’s the deal?

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IBIO Stock Is Benefitting From MRNA News

As mentioned above, iBio is making a run for the top in the market this morning, regardless of the fact that the company hasn’t issued any press releases or SEC filings. While no news has been released, there’s good reason for the gains.

Early this morning, Moderna (NASDAQ: MRNA) announced positive results from a clinical study of its coronavirus vaccine candidate. In the release, the company said that all 45 patients generated neutralizing antibodies as a result of the vaccine.

That’s great news.

Neutralizing antibodies target the spike protein, which is found in coronavirus infected cells. From there, these antibodies attack the spike protein, ultimately killing the virus. So, at least in a small population of 45 patients, Moderna’s vaccine seems to work.

So, why is IBIO climbing as a result of the news? Aren’t IBIO and MRNA competitors?

Well, there’s quite a bit to think about here. First and foremost, yes, IBIO and MRNA are competitors in the race to develop a vaccine for the coronavirus. However, there’s one thing that investors need to keep in mind. No single company is going to be able to produce vaccines fast enough to give them to the masses around the world. As such, given the incredibly high demand for vaccines, there’s room for multiple options to hit the market and make money.

What the Moderna announcement did today is this… it showed the investing community that it is possible to create a viable vaccine. As such, we’re seeing gains across the coronavirus vaccine subsector of biotech as a whole.

While Moderna is in the lead and will likely produce the first approved vaccine, there’s still plenty of room for IBIO, and I believe that the stock still represents one of the biggest speculative opportunities in the COVID-19 space.

Let’s not forget, the company isn’t just working on a single vaccine candidate. It has two clinical programs surrounding the development of a vaccine. Moreover, the company partnered with CC-Pharming, a company that has already developed a vaccine for a sister coronavirus. The knowledge that comes from a partner like this is invaluable, and only increases the company’s chances of developing a viable vaccine.

Moreover, as mentioned above, no single company will be able to produce enough vaccine doses to give them to the masses. Even 100 million doses wouldn’t even touch the entire US population, let alone populations in Europe, Asia, and other developed areas.

This is where iBio shines. The company owns the FastPharming Facility, a facility commissioned by the United States government that has the ability to produce vaccines and other biologic agents at lightning pace in times of a pandemic.

Considering this, IBIO is uniquely positioned to produce more vaccine doses than just about anyone else, and there’s quite a bit of value in that. So, while Moderna may have the first vaccine that hits the market, IBIO has plenty of room to generate profits from their work, even if theirs is second, third, or even fourth to hit the market.

Final Thoughts

The bottom line here is simple. Moderna essentially proved today that the development of a viable vaccine is indeed possible. Now, there’s even more of a reason to be excited about the work that IBIO is doing as the company will likely be one of the leaders in the space in the long run.

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