Plant-based biologics manufacturer iBio (NYSEAMERICAN:IBIO) is best known for its pipeline drug candidates, IBIO-200 and IBIO-201, which target Covid-19. Thus, when it comes to vaccine candidates, investors in IBIO stock should be encouraged that the company has not just one, but two “dogs in the race,” so to speak.
The company is also known for its expansive, 130,000-square-foot FastPharming facility located in Bryan, Texas. This massive vertical farming facility was built back in 2010 with funding from the U.S. Defense Advanced Research Projects Agency.
Yet, FastPharming isn’t just a farming facility. It’s also a system of biologics development and manufacturing. It’s designed to be fast and scalable — important features to have during the era of Covid-19.
Holders of IBIO stock should also know that the company has pipeline candidates targeting systemic scleroderma (IBIO-100), as well as classical swine fever (IBIO-400). But obviously, the focus nowadays is on iBio’s prospective treatments for the novel coronavirus. Therefore, we’ll hone in on those, along with the price action of the stock.
A Closer Look at IBIO Stock
I constantly find myself telling people not to chase stocks after they’ve gone parabolic. When the trajectory of a stock goes vertical, it’s not the ideal time to take a long position.
If you need a textbook example of this principle in action, just take a look at IBIO stock. In July, this stock shot up from $2 to its 52-week high of $7.23. Most of this price spike took place within a couple of weeks.
A move of that magnitude is usually not sustainable. And so, chasing IBIO stock near the highs turned out to be a bad move as it tumbled back down below $2 in August.
The IBIO share price remained below $2 in early November. If you bought the stock near the highs, hopefully you can take this as a lesson learned.
On the other hand, if you don’t own the stock yet, now you have a chance to get in at a more favorable price point. Plus, it’s good to know that IBIO stock buyers are willing and able to push the share price much higher, as they’ve done so in the past.
A Two-for-One Deal
As I referred to earlier, investors in IBIO stock are basically getting two Covid-19 vaccine candidates from one biotech company.
Now, I don’t want to imply that “more” is the same as “better.” Still, it’s not a bad thing to have two entrants in the race to discover an effective coronavirus vaccine. Plus, iBio’s vaccine candidates are truly unique, as no other biotechnology company has the proprietary FastPharming technology.
Surprisingly, there are no plant-based vaccines on the market that are currently approved by the U.S. Food and Drug Administration (FDA). If IBIO-200 or IBIO-201 is approved by the FDA, it will be a historic moment for the scientific community and for iBio.
Making Progress
Don’t get me wrong — iBio’s Covid-19 vaccine candidates are still in the preclinical stages. Hence, there’s risk involved if you’re an IBIO stock holder.
On the other hand, iBio’s vaccine-development programs are showing progress. The company intends to evaluate IBIO-200, a virus-like particle program, in tandem with IBIO-201, which “combines antigens derived from the SARS-CoV-2 spike protein fused with the Company’s patented lichenase booster molecule.”
iBio CEO and Chairman Tom Isett seems to suggest that IBIO-201 may have more potential due to its encouraging preclinical results. However, this doesn’t mean that the company is abandoning IBIO-200.
“While IBIO-201 produced significantly higher anti-spike neutralizing antibody titers than IBIO-200, we are still encouraged by the potential of IBIO-200,” clarifies Isett.
The Bottom Line on IBIO Stock
“More” doesn’t mean the same thing as “better,” I’ll grant. Still, IBIO stock holders should be glad to see progress in the company’s pair of coronavirus vaccine candidates.
Indeed, in the race to bring an effective Covid-19 vaccine to market, two candidates may be much better than just one.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.