Biotech company iBio (NYSEAMERICAN:IBIO) has been a hot name this year as it looks for a novel coronavirus vaccine. The search has put IBIO stock on a roller-coaster ride, with investors chasing the headlines.
And while it’s true that iBio has fallen behind others in the development of a vaccine, the company’s FastPharming system is opening other, promising doors.
Is it time to give up on iBio? Not in the least.
New Partnership for IBIO Stock
Earlier this month, iBio announced that it entered into a master services agreement with Safi Biosolutions. The agreement calls for the two to evaluate iBio’s FastPharming system for potential use in bioprocessing Safi’s blood cell therapy products.
It stands to note, too, that Safi is currently working under a five-year contract with the Department of Defense. That deal aims to produce on-demand products that could remedy blood shortages on the battlefield and in remote military locations. Domestically, on-demand blood can also be tailored toward transfusions for specific disorders, such as sickle cell disease.
The transformative FastPharming system, then, makes this a compelling partnership — the venture could mean something great for IBIO stock. FastPharming is a plant-based system that allows the company to scale production with greater speed and consistency than traditional manufacturing.
As part of the partnership, iBio will make 10 proteins to be evaluated in the blood therapy. Safi will have the right to designate some proteins as proprietary, but iBio will also be able to commercialize all other products that come out of the testing. Earlier this month, Safi CEO Doug McConnell said:
“Safi Biosolutions believes iBio’s plant-based expression system has the potential to provide both quality improvement and cost reduction for many of the important cytokines and media used in our cell culture and growth process, and we are excited to initiate this strategic partnership.”
In addition, iBio is investing $1.5 million into Safi via a convertible promissory note.
FastPharming was (and is) the biggest selling point in the company’s search for a vaccine, but now its potential use in blood therapy serves as a reminder to investors. There are plenty of applications for iBio and its system outside of the pandemic.
A Vaccine Is Still in Play
These developments don’t mean that iBio is giving up on finding a coronavirus vaccine, however. While the company may be behind others in vaccine development, the race is far from over.
As I wrote last month, iBio has two potential candidates, IBIO-200 and IBIO-201. Back then, the company announced that it had chosen IBIO-201 as its leading vaccine candidate, noting it did a better job producing antibodies in mice.
The company is also working with the Infectious Disease Research Institute, as well as Texas A&M University in the development of its potential vaccine.
While IBIO stock probably won’t be the first to bring a novel coronavirus vaccine to market, its work still has value. There are going to be multiple vaccines on the market, and the one that works best for you will depend on your medical history and other preconditions. While the company may not take first place in the race, it still has a chance at the podium.
Bottom Line
IBIO started the year at less than 50 cents per share. In July, it spiked higher than $7. But as other novel coronavirus candidates pulled ahead of the company, the stock price slipped. Now you can get IBIO stock for about $2.
Yes, the company has lost its luster as a pure coronavirus play. But a successful investment in iBio does not hinge purely on the pandemic.
An investment in iBio is also an investment in the company’s unique FastPharming system, which has plenty of applications, and in turn, potential profit.
IBIO stock continues to have an “A” rating in my Portfolio Grader, maintaining its strong buy recommendation.
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.
