The investing community is often of two minds when it comes to stock-price dips. While the sentiment is bullish overall when it comes to iBio (NYSEMKT:IBIO), a quick dip in the IBIO stock price has made some investors nervous about holding the shares.
Sure, you can view early July’s decline as problematic if you want to. After all, biotechnology stocks are prone to volatility and a fast drop could potentially signal that more downside is coming soon.
Yet, there’s a whole other way of looking at it which you might want to consider. The volatility in biotech stocks means that there will be sharp price moves in both directions even if the uptrend is still intact. Just as importantly, a perfectly good company will have less-than-stellar days and weeks.
A good approach is to take stock of the company’s recent developments and combine this analysis with the price action. Everything considered, you might find that IBIO stock’s next move is probably up, even if the most recent move was down.
IBIO Stock at a Glance
Judging by the stock price, it’s evident that iBio’s savvy move to position itself as a novel coronavirus company paid off handsomely. Indeed, IBIO stock languished below the $1 level for many months prior to the onset of the coronavirus.
Late February proved to be a watershed moment for patient IBIO stockholders. The breathtaking move from 33 cents to $2.45 only took a few days. This is truly the stuff that biotech investing dreams are made of.
A surge of such magnitude and ferocity needed a retracement so that the market could digest the gains. Thus, IBIO stock pulled back to slightly below the $1 level. Then it rocketed back to that same $2.45 level again, marking a key resistance level.
Early July saw a pullback below $2, but keep in mind that stocks don’t typically move in a straight line from point A to point B. If iBio doesn’t encounter any major negative events, then the company’s stock should make another run for $2.45 and, sooner or later, break through it.
The Single-Dose Holy Grail
Biotechnology companies seeking to develop and market a Covid-19 vaccine generally want to make it less invasive for patients. The holy grail, then, is a vaccine that doesn’t require multiple doses.
iBio is working tirelessly to achieve this important objective. The company’s second-round Covid-19 vaccine research could potentially involve a single-dose regimen. Moreover, iBio has already initiated preclinical immunization studies for this vaccine candidate.
What differentiates this round of studies from others? Mostly, it comes down to the introduction of iBio’s patented lichenase booster molecule, less formally known as LicKM.
Adding the LicKM booster could bring iBio closer to achieving an effective single-dose coronavirus vaccine. The company also hopes to achieve increased vaccine potency and prolonged immunity for patients while also boosting iBio’s manufacturing capacity.
Providing Value through Research
The achievement of a single-dose Covid-19 vaccine would position iBio and its stakeholders well, to say the least. iBio Vice President of Protein Expression Sciences Sylvain Marcel recently elaborated on the significance of the company’s potentially revolutionary LicKM vaccine enhancement:
“Our LicKM technology has the potential to achieve the same immune response as a soluble antigen vaccine approach, but with lower vaccine antigen requirements. This may prove to be valuable in reducing the number of vaccine doses necessary to establish prolonged immunity.”
Moreover, iBio isn’t flying solo in its quest to discover a Covid-19 vaccine. Not long ago, the company announced that a team of scientists at Texas A&M University, led by Dr. James Samuel, is collaborating with iBio on two Covid-19 vaccine candidates.
The Texas A&M scientists “expect to see preliminary results before Oct. 1 from pre-clinical trials in mice,” according to iBio’s press release. That date is just a few months away. So, IBIO stock’s $2.45 ceiling might be broken within weeks rather than months.
My Final Word on IBIO Stock
If you were holding IBIO stock prior to the early July dip, don’t fret. With potentially transformative research in progress, iBio has plenty of forward momentum in store and the share price should reflect it in due time.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.