iBio (IBIO) Stock: Thank InvestorPlace For Today’s Discount

iBio IBIO Stock News

iBio Inc (NYSEAMERICAN: IBIO) is having a rough start to the trading session in the premarket hours this morning, falling nearly 10% early on. The declines seem to be the result of an article published on InvestorPlace, suggesting that IBIO is headed down.

Nonetheless, as a long-term play, the stock may be a big winner. If all goes well for the company, many will be thaniking InvestorPlace for the discount they’ve created today. Here’s a look at what InvestorPlace published and why IBIO stock may be a big long-term winner.

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InvestorPlace Bashes IBIO

Before we get too deep here, I want to point out that the article published on InvestorPlace by Alex Serois brings up some very valid points. I have quite a bit of respect for Alex and enjoy reading his articles.

With that said, while IBIO is a risky play, that risk can pay off in a big way. With that said, here are some key points from Alex’s article:

  • IBIO Is Behind. Alex pointed to 22 COVID-19 vaccine candidates that seem to be ahead of iBio’s in the development process, suggesting that if they do get a vaccine to market, by the time it makes it there, there won’t be a need for it.
  • Preclinical Data. Alex brought up a recent press release surrounding preclinical data, explaining that data came from mice. Often times, data from mice doesn’t equate to efficacy and safety in humans.
  • Vagueness. Alex also pointed to the fact that in recent updates surrounding its COVID-19 candidate, IBIO has been vague with regard to its plans.
  • Partnership. Finally, Alex pointed to the partnership with CC Pharming and the fact that we haven’t heard an update from that partnership for some time, suggesting that it has stalled.

The fact of the matter is that all of these are VERY REAL concerns representing VERY REAL RISKS. Nonetheless, what Alex didn’t do in his article was explain the long-run opportunity here.

Addressing Some Of These Risks

In his article, Alex seemed to make multiple insinuations that I simply don’t agree with.

First and foremost, his article was all about speed, suggesting that speed to market will be the key to success in the market. Of course, speed is important, but I think the long-term opportunity is being discounted.

The fact of the matter is that the flu vaccine has been available for decades. Today, several different options are on the market, generating massive amounts of revenue for several companies. Unfortunately, the flu has not gone away, but that also means that the opportunity hasn’t either.

COVID-19 is caused by the coronavirus, a cousin strain of which causes the common cold. To date, we haven’t been able to develop a vaccine for the cold due to the complex nature of coronavirus strains. As a result, a successful vaccine for the coronavirus that causes COVID-19 is going to be difficult to come by. Moreover, efficacy may not be what you think it is.

I highly doubt that a single vaccine is going to work for everyone, creating a long-term need for multiple vaccine options. So, taking a short term view when looking at IBIO or any other COVID-19 vaccine developer is a mistake.

In the InvestorPlace article, Alex also points out that the recent preclinical data came from mice, not humans. However, that’s how preclinical studies work. You have to make sure that a vaccine is safe in animals before risking giving it to humans. That’s not a bad thing, that’s just how things work.

So, the fact that the data came from mice should not be used to discount the validity of the data.

Finally, Alex pointed out that 22 companies are ahead of IBIO when it comes to the development of a COVID-19 vaccine. There’s no way to argue that. However, it does create an insinuation that all of these candidates are equal, and will reach approval and commercialization prior to IBIO.

The fact of the matter is that many of these vaccines will fail. Even if they make it through to approval, the companies that develop them will have to figure out mass manufacturing. IBIO already has that pinned down. So, should it bring a vaccine to market, thanks to its FastPharming Facility, it would be able to create massive amounts of doses nearly immediately, giving it a competitive advantage.

Final Thoughts

As is the case with its competitors, there is a chance that IBIO will fail. Moreover, I have a great deal of respect for Alex as a writer and InvestorPlace as a publication. However, I think it’s unfair to parse the IBIO story as a short term play. This is not a short term story, and while there are risks, the long term potential here is incredible.

Ultimately, there will be a long-term need for vaccines. I didn’t say vaccine, I said vaccines. I strongly believe that IBIO will provide one of these vaccines in the long run. As a result, while the stock is down today, the declines may represent a discount to get in on these potential long-run profits.

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