iBio (IBIO) Stock Rockets On Coronavirus Vaccine Development

iBio IBIO Stock News

iBio Inc (NYSEAMERICAN: IBIO) is flying in the market this morning, trading on gains of more than 68%. The gains come after the company announced that it has entered into a collaboration to develop a vaccine to the coronavirus (2019-nCoV). Here’s why investors are so excited:

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IBIO Stock Gains Nearly 70% On Coronavirus News

In a press release issued late yesterday, iBio announced that it has teamed up with Beijing CC-Pharming Ltd., in an effort to create a coronavirus vaccine. In the release, the company said that the vaccine will be manufactured using its FastPharming System.

IBIO said that the effort between the two is the culmination of a combined twenty-five years of vaccine R&D experience. This includes work on the MERS-coronavirus at CC-Pharming and the ability to build out a rapid design manufacturing process offered up by iBio. So, if the collaboration is successful, the result will be a vaccine that can be quickly produced.

The FastPharming Facility owned by the company was originally built as part of a Department of Defense program. The program had the goal of estabilishing facilities that were capable of rapidly delivering medical countermeasures in response to a disease pandemic.

In the past, this system has been used to produce candidates for Ebola, Dengue fever viruses, yellow fever virus, human papilloma virus, seasonal influenza and avian influenza.

In a statement, Robert B. Kay, Executive Chairman and CEO at IBIO, had the following to offer:

We are optimistic about the potential to combine iBio’s and CC-Pharming’s technical expertise and then deploy the FastPharming System to contribute to the development of a vaccine for this disease.

Why This Is Such BIG News

There are a few factors at play here, and they are all good for iBio. First and foremost, the coronavirus is probably the biggest story on the news right now. Yesterday, there were a reported 17,000+ victims of the virus in Asia. Today, that number has climbed over 20,000. Many of these victims are passing away as a result of the condition. Not to mention the fact that as many as 75,000 may be infected considering reports of China seriously downplaying the numbers.

So far, in the United States, there have been 11 cases. Around the world, we’re seeing more people falling ill with the coronavirus.

As the issue grows to nearly pandemic proportions, the global need for a vaccine is growing quickly. The simple fact that IBIO is working on a vaccine is exciting news. However, the company also has a few competitive advantages here.

First and foremost, the company is teaming up with CC Pharming. This is a strategic move as CC Pharming is a Chinese company. By teaming up with this company, IBIO gains easy access to patients in China.

Moreover, due to the company’s work in the Department of Defense program, it is capable of producing vaccines at an incredible speed. In times like these, speed is a key ingredient to success. IBIO has the FastPharming Facility, which is a huge advantage here.

Finally, the company’s partner, CC Pharming, has experience in the development of a MERS vaccine. This is key as MERS, also known as MERS-coronavirus is a strain of coronavirus. This experience gives the team a competitive advantage when it comes to quickly developing vaccine effective vaccine candidates.

All in all, IBIO is in a great place at a great time. As headlines continue to spread awareness of coronavirus, the demand for vaccines will only grow. All in all, this is a big story, and the company’s that take charge to create solutions to the problem first will likely be the ones that enjoy the rewards ahead!

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