Biologics manufacturer iBio (NYSEAMERICAN:IBIO) is known and respected as an innovator in the plant-made pharmaceutical field. With the onset of the novel coronavirus, the trading volume in IBIO stock has increased and the share price has swung in both directions.
In early September, the IBIO stock price is on the downswing. The price pressure is hard to justify as there haven’t been any major negative catalysts lately. However, this could present a chance to take a position in iBio at a more favorable price point.
Perhaps the trading community doesn’t fully understand or appreciate iBio’s transformative FastPharming plant biologics system. Or, it’s possible that the market’s underestimating the importance of a recent agreement that could be a real game changer.
Either way, it’s essential to see IBIO stock not as a stock that’s falling, but as a stake in a biotechnology firm with a truly unique approach to addressing the Covid-19 pandemic.
IBIO Stock at a Glance
If you waited for a better price to take a long position in IBIO stock, you definitely made the right choice. The 52-week high of $7.45 indicates that the bulls can run the stock much higher.
It’s probably not a coincidence that the drawdown in IBIO stock took place as the “coronavirus trade” cooled off. And to be honest, the tripling of the share price in mid-July was too steep and too fast.
Therefore, it’s not unreasonable that there was some profit taking in IBIO stock. This is a normal part of the process as the market digests its gains, especially after a stock nearly goes vertical.
As alluded to earlier, there’s a catalyst that could take IBIO stock to the next level. Getting back above $7 won’t likely happen overnight, but reclaiming $4 and then $5 in the near term is not out of the question.
A Powerful Partnership
It’s fascinating to consider the possibility that just one molecule could help the scientific community combat a global pandemic.
Yet, this vision could actually become a reality. That’s because iBio has engaged in an “exclusive worldwide license agreement” with Planet Biotechnology Inc. to develop ACE2-Fc, a therapeutic candidate for Covid-19.
It’s a perfect match because like iBio, Planet Biotechnology focuses on plant-based therapeutic solutions. Plus, both companies are dedicated to discovering novel solutions to the coronavirus pandemic.
This arrangement could prove to be a windfall for iBio. Reportedly, iBio has an exclusive license to ACE2-Fc. Studies conducted by Planet Biotechnology have already demonstrated that the company’s ACE2-Fc “blocks SARS-CoV-2 virus from infecting Vero E6 cells.”
Future Applications
As iBio CEO and Chairman Tom Isett sees it, the partnership with Planet Biotechnology presents a tremendous scientific opportunity.
Together, they’re seeking to develop “this novel immunoadhesin molecule” not only as a treatment for the currently prevalent strain of the coronavirus, but also for “mutations in the current virus, if any, as well as future coronaviral diseases.”
Thus, if successful, iBio and Planet Biotechnology’s collaborative project could put an end to this unfortunate pandemic. Even beyond that, it would demonstrate the power and efficiency of plant-based therapeutics.
That’s an area of biotechnology that hasn’t been fully explored yet, but perhaps ought to be. iBio’s FastPharming system, for example, tends to be relatively inexpensive. Moreover, it’s easily scaled up because a researcher can simply grow more plants.
The Takeaway
When the market comes to appreciate the potential of plant-based therapeutics, IBIO stock should increase in value. And with the Planet Biotechnology partnership, iBio may be a step closer to ending the pandemic once and for all.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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.
