Why iBio Stock Could Triple on Successful Vaccine Trials

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The mere mention of a coronavirus vaccine is enough to draw monster investor interest in equities like iBio (NYSE:IBIO) stock.

Why iBio Stock Could Triple on Successful Vaccine Trials
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After all, if a company is on the cusp of vaccine success, global economies can fully reopen with confidence. It’s why Moderna (NASDAQ:MRNA) raced from a low of $17.91 to a recent high of $87 as it works on a Covid-19 vaccine. And it’s not the only one:

  • Inovio Pharmaceuticals (NASDAQ:INO) jumped from $3 to a high of $19.36.
  • Novavax Inc. (NASDAQ:NVAX) soared from $3.77 to $48.
  • Sorrento Therapeutics (NASDAQ:SRNE) jumped from $1.55 to a high of $10.
  • Pfizer (NYSE:PFE) roared from a low of $28 to $38.

Then there’s iBio, which exploded from a low of 25 cents to a high of $3.40 before pulling back.

However, there may be further upside here.  Over the last few weeks, the stock has regained momentum, running from 75 cents to $1.58. From here, I believe the stock could triple in value on successful trials, and the potential for FDA approval, in the near term.

IBIO FastPharming is a Key Catalyst for Growth

IBIO uses FastPharming, which uses plants as bioreactors, in an effort to develop antibodies and vaccines from plants. Or, as The Medicine Maker explains:

“The gene or genes encoding the protein or proteins of interest are temporarily transfected into the leaves of our hydroponically-grown plants. Pharmaceutical proteins accumulate in the leaves as the plants grow over a period of 4 to 7 days, and the leaves are then harvested. The protein is isolated, purified, and formulated into the desired drug or vaccine product. The plant we use is a relative of the tobacco plant.”

To date, such technology has been used to create antibody candidates for Ebola and dengue fever. Animal and human studies have also been completed for vaccines for yellow fever, human papilloma, seasonal and avian influenza, for example.

With regards to the coronavirus, iBio is in clinical trials with its Covid-19 vaccine, IBIO-200, a virus-like particle (VLP) vaccine candidate with the technology. If trials are successful with its technique, the company has estimated it could create about 500 million doses of high quality product at its Texas facility.

As noted by Co-Chairman and CEO, Tom Isett, “That scalability links directly to the modular technology behind our FastPharming Manufacturing System, which uses a relative of the tobacco plant as the ‘bioreactor’ to produce biopharmaceuticals.”

He continued by noting that scale-up can be achieved by growing thousands of other plants inside the company’s 130,000 square-foot facility.

IBio Has Well-Connected Partnerships in Place

IBio recently partnered with the Infectious Disease Research Institute (IDRI) on its COVID Virus-Like Particle (VLP) vaccine development. Under the agreement, IDRI will support the pre-clinical development and clinical trial oversight. Meanwhile, IBio will provide the process development and manufacturing services.

IBio is also collaborating with Beijing-based CC-Pharming, which could help open doors for its vaccine throughout China. In addition, Lincoln Park Capital has agreed to fund up to $50 million in cash for the company in an equity line of credit.

The Bottom Line on IBIO Stock

Still in clinical trials, IBIO is a gamble at this point. It’s not even among the top front-runners with a potential vaccine. However, if it can get its ducks in a row with solid results with the ability to produce 500 million doses, we could have something here.

After all, if it can find success, it finds itself exposed to a $10 billion annual business, “at an estimated price of $30 per vaccine,” says Barron’s contributor Bill Alpert.

Right now, IBIO is a speculative investment. But if it can get things up to par fast, the stock could double, if not triple over the next year.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.


Article printed from InvestorPlace Media, https://investorplace.com/2020/06/why-ibio-stock-could-triple-on-successful-vaccine-trials/.

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