iBio IBIO Stock News

iBio Inc (NYSEAMERICAN: IBIO) is a stock that I’ve followed for some time now. Recently, we’ve seen the stock coming off of highs generated in late July. Since the July 20, 2020 high, the stock hasn’t seemed to have gained footing.

Nonetheless, the declines seem to coming to an end. In fact, at this level, we could see an exciting run in value ahead. Here’s how I see it:

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IBIO Stock Is Gearing Up For A Run

For those of you who haven’t been following iBio as closely as I have, there are a few important things to know to get a full understanding of the opportunity here.

  1. IBIO Is Working On 2 Vaccine Candidates – First and foremost, the company currently has two vaccine candidates, designed for the prevention of SARS-CoV-2, the virus that cuases COVID-19, under development. Of course, having two potential vaccines under development greatly increases the company’s chances of eventually bringing one to market over a company with a single candidate under development.
  2. IBIO Is Also Working On A Treatment – Last week, IBIO issued a press release, announcing that it had entered into a worldwide license. The license surrounds the development of an effective treatment option for severely ill COVID-19 patients. Of course, this further expands the potential opportunity surrounding the stock.
  3. IBIO Owns The FastPharming Faciltiy – Finally, iBio is the owner of the FastPharming Facility. The facility was built through the use of government funding. The goal in building the facility was to have a facility that has the ability to produce mass amounts of vaccines, treatments, and other therapeutic agents in the face of a pandemic situation. The ownership of the FastPharming facility gives the company yet another competitive advantage.

So, what we have here is a company with multiple vaccine candidates, a treatment candidate, and a manufacturing facility that has the ability to produce doses for the masses at lightning pace.

The Market Seems Concerned About The Too Little Too Late Concept

Whether you’re a COVID-19 investor or not, you know that there are multiple vaccines in late-stage studies that seem like they’ll be ready for the market early next year. It would take a miracle for IBIO and its vaccines or treatment options to achieve regulatory approval that quickly.

This simple fact seems to be what’s holding the stock back. But I’m here to tell you, the company is not in a race, COVID-19 is a long term condition. There are a few things you should know about this virus.

  • Virus Type. SARS-CoV-2, the virus that cuases COVID-19 is part of a family of viruses known as coronaviruses. This is the same type of virus that causes the common cold.
  • Immunity Isn’t Easy. Building immunity to coronavirus strains through vaccination is difficult, if it was easy, we would have a vaccine for the common cold. Chances are that even the most effective vaccines will only be effective in a specific subset of the overall population.
  • Immunity Doesn’t Last. Finally, your innate immune system builds immunity against the common cold every time you catch it. But a couple years later, that immunity wears off and you get sick again.

Given these characteristics of coronaviruses, there’s no race here, it’s a marathon. While IBIO won’t be the first to market, it doesn’t have to be. There will likely be a long-term need for vaccines that stretches far and beyond the next year. Infact, COVID-19 could soon become as regular as the common cold or seasonal influenza. In this case, the long term need for vaccines and treatments validates the value of the work IBIO is doing, even if it isn’t first to market.

The Bottom Line

The fact of the matter is that inaccurate fears that IBIO simply won’t have the time it needs to achieve profitability with its COVID-19 candidates are holding the stock down. The reality is that COVID-19 is likely to be a long-term issue, offering up plenty of a runway for the company to achieve profits.

As a result, recent declines in the stock seem to be opening a discounted opportunity to get in on future gains. Don’t miss your chance!

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1 COMMENT

  1. IBIO is not just a covid play but it will see alot of volume in the days to come!
    Personally invested so diffently coloured here, but almost no short stocks available and only high interest will force it into a squeeze soon.
    News will just add to that!

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