Once one of the fastest rising stocks of 2020, shares in biotech company iBio (NYSEAMERICAN:IBIO) are hurting. Starting the year as a penny stock, iBio rode the novel coronavirus vaccine race to spectacular 2,037% gains. However, since mid-July, it’s been all downhill for IBIO stock.
Currently trading in the $1.65 range — down 74% from its $6.41 close on July 20 — the situation doesn’t look great. Or does it? If you’ve been considering an investment in this plant-based vaccine pioneer, the current weakness in IBIO stock is an opportunity.
At this point, there are plenty of naysayers who have all but written off iBio. The lack of progress in its COVID-19 vaccine is the primary reason in avoiding the company at this point. However, as I have pointed out in previous coverage of iBio, a potential vaccine isn’t the only reason to invest.
This biotech’s plant-based FastPharming technology is part of the COVID-19 vaccine race. In the long run, FastPharming itself has the potential to be the bigger story.
IBIO Stock Story in 2020 Is All About COVID-19 Vaccine
There are over 100 companies with COVID-19 vaccines in development. Like many of these, iBio has seen its stock price dramatically rise and fall based on progress of its vaccine candidates.
In July, speculation over iBio’s two vaccine candidates (which were being tested at Texas A&M University System “TAMUS” laboratories) resulted in a huge jump in share prices. In a single session, IBIO stock closed up 64%! They soon went into a tailspin, as competing vaccine candidates went into phase 3 clinical trials, leaving iBio behind.
There was a brief pop in August when the FDA announced the emergency use of convalescent plasma for the treatment of COVID-19 in hospitalized patients. The company’s FastPharming system could have come into play there.
Overall, the arc of IBIO stock in 2020 reflects its prospects to be the one to deliver a COVID-19 vaccine. Potential that led to a rapid rise, followed by a slump as resignation that it would lose the race sunk in.
First Vaccine Won’t Be The Only Vaccine
At this point, it’s pretty obvious that iBio will not be the first to market with a viable COVID-19 vaccine. That realization has slammed IBIO stock since mid-July. However, being first to market with a vaccine doesn’t mean game over for the other companies developing their own versions. Multiple vaccines will ultimately end up in production.
Dr. Dan Barouch is the director of Harvard’s Center for Virology and Vaccine Research. In an interview, he told Yahoo News:
No single vaccine developer is going to be able to provide a vaccine for the global market… It’s very possible that there might be multiple vaccines that prove safe and effective, at least that would be my hope. The more vaccines that become available, the better. Because each vaccine might have some pros and cons: Some might be more effective, some might have different side effects. Profiles might be particularly good in the elderly or the young populations, some might have different costs associated with them.
The FastPharming Potential
All of this focus on a COVID-19 vaccine basically ignores iBio’s FastPharming system, which may be the bigger story for this company. It was developed in 2010 with funding from DARPA (the Defense Advanced Research Projects Agency). FastPharming uses plant-based expression to “grow” vaccines and other products quickly, safely, and at scale.
FastPharming has applications far beyond producing a COVID-19 vaccine. An example of this potential was a deal signed in October with Safi Biosolutions. The agreement will see iBio’s FastPharming system used in the bioprocessing of Safi’s blood cell therapy products. FastPharming has the potential to be part of many such deals in the future.
Bottom Line on IBIO Stock
Not a lot of analysts cover iBio. Their focus is more on the big multinational pharma companies that are front-runners for a COVID-19 vaccine. For what its worth, the sole investment analyst on the Wall Street Journal’s radar is in my camp. They have IBIO stock rated as a buy with a $3.10 price target.
At this point, iBio continues to hold its ‘A’ rating in Portfolio Grader. The company is in solid financial shape, with $83.1 million in cash and cash equivalents. Its bet on developing a COVID-19 vaccine may yet pay off — even if it’s not the first to market.
Regardless of what happens with that vaccine, its innovative FastPharming technology has plenty of potential. The agreement signed with Safi Biosolutions shows there is industry interest in adopting iBio’s system.
At $1.65, iBio may look expensive compared to its penny stock status at the start of 2020. But it’s still cheap compared to July prices.
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.
