iBio Pharma (NYSEAMERICAN:IBIO) news for Monday concerning an update about the novel coronavirus has IBIO stock soaring higher.
The update comes from president Donald Trump during a conference on Sunday. During that conference, the President announced that the U.S. Food & Drug Administration (FDA) has approved emergency use authorization for convalescent plasma therapy to treat some people suffering from the coronavirus.
According to President Trump, the authorization from the FDA will cover coronavirus patients that are hospitalized due to the illness. This opens up the way for plasma companies to use plasma from people previously infected by the virus to treat those currently being affected by it.
Convalescent plasma therapy uses plasma to treat patients because it contains antibodies. That means that people that have already had the coronavirus have the appropriate antibodies to fight the virus off. Transferring this plasma to a person already infected by the virus can help their bodies naturally fight it off.
This news affects iBio Pharma because it’s one of those plasma companies. While iBio Pharma typically focuses on vaccines from plant proteins, it has used its research in the past for human plasma treatments, reports The Motley Fool.
It’s true that the recent news may push investors toward iBio Pharma but it might not be worth it. The company only has a small chance of developing a vaccine that will treat the novel coronavirus. That means many investors may be disappointed if it fails to do so and IBIO stock prices fall.
IBIO stock was up 25.3% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.