I’ve weighed in on iBio (NYSE:IBIO) stock a few times.
In June I said, “The stock could triple in value on successful trials, and the potential for FDA approval.”
Shortly after, it would run from $1.50 to $7.45 good for a return of 397%. Great call. Unfortunately, IBIO would fizzle and fade to about $2 shortly after because investors got tired of waiting on the company.
By October, I weighed in on the stock again, noting it was best to avoid the stock, watching it slip from $2.11 to $1.07. Another solid call.
This time around, while I’d love to tell you this is your next hot coronavirus opportunity, I can’t.
Other vaccine companies, like Moderna (NASDAQ:MRNA), BioNTech (NASDAQ:BNTX) and Johnson & Johnson (NYSE:JNJ) already made it to the finish line. Meanwhile, IBIO doesn’t even expect to receive a pathology report on its vaccine until the fourth quarter.
Don’t Write IBIO Stock Off Just Yet
In late January, Cantor Fitzgerald analyst Kristen Kluska started the IBIO stock with an overweight rating with a price target of $3. She believes the stock is still trading under the radar. In addition, she believes its current price does not fairly reflect its FastPharming system.
In fact, I believe its FastPharming technology could be a strong long-term catalyst for the company. According to iBio’s investor deck, the “FastPharming System capable of cost-effectively producing a large number of vaccine doses.”
In addition, the system has substantial advantages, including:
Greater speed-to-clinic by shaving months off of traditional mammalian-cell development times; Less contamination risk since mammalian viruses and prions can’t grow in plants; Avoids plastic single-use disposables widely used with mammalian-cell biologics production; Avoids scaling issues moving to large bioreactors – just grow more plants; Powerful, proprietary glycosylation controls for better performance and higher quality.
iBio Isn’t a One-Trick Pony
At the moment, it’s in pre-clinical studies for systemic scleroderma. It’s also nearing pre-clinical studies on treatments for idiopathic pulmonary fibrosis. In addition, it just entered clinical studies for IBIO-400 for a swine fever vaccine.
Better, according to its investor deck, it has several patent applications in for influenza vaccines and antibodies, in addition to vaccines for the plague, anthrax, HPV and malaria. In addition, iBio could see big market opportunities with fibrotic and infectious diseases.
Also, the company was just selected to produce bioengineered antibody-toxin fusion proteins for ATB Therapeutics. According to the iBio press release, “The fusion proteins, called atbodies, are being designed for the treatment of cancers. iBio will develop a manufacturing process and assays for select atbodies.”
In short, while the company is running behind competition on the coronavirus vaccine, it’s seeing progress elsewhere.
The Bottom Line
When it comes to IBIO stock and its coronavirus vaccine, there’s not much to get excited about yet. Remember, iBio doesn’t even expect to receive a pathology report on its vaccine until the fourth quarter. However, don’t write the stock off just yet.
Kluska’s analysis shows that IBIO stock is overweight and still has a $3 price target. The company’s FastPharming technology could be a strong catalyst for the company in the long term. And remember, iBio has plenty of other projects besides its work on the Covid-19 vaccine.
At the moment, I wouldn’t bet on the stock for its coronavirus vaccine. It’s the company’s FastPharming System that could move the stock.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. A contributor to InvestorPlace.com, Ian Cooper has been analyzing stocks and options for web-based advisories since 1999.