Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Ibio Stock May Be A Long Play For Risk-Tolerant Investors

By MarketBeat.com (Chris Markoch )Stock MarketsMay 19, 2021 06:20AM ET
www.investing.com/analysis/ibio-stock-may-be-a-long-play-for-risktolerant-investors-200581091
Ibio Stock May Be A Long Play For Risk-Tolerant Investors
By MarketBeat.com (Chris Markoch )   |  May 19, 2021 06:20AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Ibio Inc (NYSE:IBIO) was one of the more fascinating stocks at the onset of the Covid-19 pandemic. The company already possessed a proprietary system for producing proteins from plants. And in the early days of the pandemic, Ibio introduced a vaccine candidate, IBIO-201, with hopes that it could receive funding from Operation Warp Speed (OWS)

That news pushed Ibio stock from about 30 cents a share to over $6 a share. However the company wasn’t selected for OWS. And it found itself engaged in a lawsuit with Fraunhofer USA which threatened the intellectual property surrounding its proprietary FastPharming technology.

The stock dropped sharply but has found support that’s keeping it above the psychologically important $1 threshold. One reason for that is that the company is taking another whack at a next-generation Covid-19 vaccine. And, in the last month, the company has managed to put is

I don’t often find myself pondering taking a position in a penny stock. Most penny stocks are inexpensive for a reason. Nevertheless, I find myself intrigued by iBio now that the company has put its legal troubles behind it.

An Innovative Approach to Vaccine Development

For investors unfamiliar with Ibio, I threw a lot at you in that introduction. So let me quickly take a step back. Ibio uses plant-based technology to enable next-gen biologics. The company’s proprietary FastPharming system produces proteins from plants. Because they’re plant-based, these proteins can be rapidly developed in the production of vaccines and antibody treatments.

In addition to the speed, the premise behind the FastPharming technology is that plants are a more sustainable source for producing biologics.

Vaccine 2.0

Ibio's initial vaccine candidate, IBIO-201, combined antigens from the novel coronavirus spike protein and fused the with the company’s patented LicKM booster molecule in an effort to boost immune response. Using the LicKM molecule was an attempt to achieve single-dose immunity.

Although the United States is amply supplied with vaccines, Ibio continues to move IBIO-201 through the clinical trial phase. Early in May 2021, the company reported successful toxicology study results for IBIO-201.

However, anticipating the potential of variants that may lessen or negate entirely the effect of the existing Covid-19 vaccines, iBio set out to design a second Covid-19 vaccine. This one, IBIO-202 focuses on the nucleocapsid (N protein).

But to get this vaccine to market will take time and funding. The company may be eligible for funding from the Coalition for Epidemic Preparedness Innovations (CEPI). If it could get funding, that would be a significant catalyst for the stock.

A Risk of Further Share Dilution

For a biotech, the process of bringing a drug to market takes a long time and a lot of money. On the company’s earnings call, management reported $103.9 million in cash, cash equivalents and debt instruments as of the end of March 2021.

However, even with the nearly $12 million in aggregate cash recovery the company will receive as part of the resolution of its lawsuit with Fraunhofer USA, iBio is only funded until the end of March 2023. This prompted a question from an analyst about whether the company would have to issue another share offering to raise money.

As you would expect, the company was non-committal and expressed hope that it would be able to generate non-dilutive revenue from its FastPharming system or through funding it will receive to proceed with its Covid-19 vaccine candidate.

What to Do With IBIO Stock?

Although inexpensive stocks typically attract trading activity, I don’t see a good setup for IBIO stock right now. However, as a component of the speculative part of your portfolio, a long, albeit small position in iBio is worthy of consideration. It’s certainly more compelling with the stock trading near $1.50 than almost $6 as it was last summer.

Of the two revenue opportunities in front of Ibio, I see the potential for government funding to be more likely than that it finds a substantive partnership for its FastPharming technology. But clearly getting funding through either outlet would be a huge catalyst for IBIO stock.

Original Post

Ibio Stock May Be A Long Play For Risk-Tolerant Investors
 

Related Articles

Thomas Hughes
Beware The Rebound In Retail Stocks By Thomas Hughes - May 27, 2022

The S&P Retail ETF (NYSE:XRT) is rebounding, but we don’t think investors should cheer too loudly. The move is driven by the combination of oversold markets and mixed...

Jea Yu
Affirm Stock Has Affirmed A Bottom By Jea Yu  - May 27, 2022 1

Buy now and pay later purchase financing provider Affirm Holdings (NASDAQ:AFRM) stock is rebounding after bottoming out at $13.64. The buy-now-pay-later (BNPL) platform had a very...

Ibio Stock May Be A Long Play For Risk-Tolerant Investors

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email