IBio Inc (NYSE:IBIO) is a Texas based Bio-Pharmaceutical company which has seen a recent surge of 720% in 2020 alone. The recent Coronavirus scare has led investors to divert their capital into Bio-pharma stocks such as iBIO, due to the companies efforts in developing a vaccine to control the virus.
In early February, the company announced it’s collaboration with Beijing CC-Pharming, lead by Dr. Kevin Wang (Chief Scientific Officer) who has already worked on relative virus – MERS coronavirus and iBio’s Dr. Sylvain Marcel who has had years of experience developing and manufacturing vaccines. This collaboration embedded a sense of security for investors, as the profitability of a vaccine is in the essence of time.
FastPharming Manufacturing Facility is the Secret Weapon
Built in 2010, the Defence Advanced Research Projects Agency (DARPA) under the wing of the US Department of Defense aided iBio in building a “FastPharming Facility” that would facilitate vaccines quickly in the case of a Global Crisis. This funding was apart of the “Blue Angel” initiative, which aimed to reduce the outbreak of influenza and other illnesses through plant-based proteins.
“The project’s goal is to improve the US’s response to pandemic influenza through accelerated vaccine production. The researchers specifically investigated a plant-based method of producing proteins for use in vaccines, which has the potential to be significantly quicker than traditional egg-based production technology.”
How long until the Vaccine is developed?
The plant based vaccine uses modified relatives from the Tabacco plant, to grow viral proteins which have shown to be very effective. Although it is too early to estimate the time the vaccine will be out, animal testing is forecasted to begin during the upcoming US summer (Wired). It seems that iBio does have an advantage against some other competitors in the market, due to their FastPharming facility which will be able to manufacturer the vaccine once it’s ready extremely quickly.
— Reuters (@Reuters) February 11, 2020
Who are iBio’s biggest threats?
The joint effort from iBio and CC-Pharming may seem like their biggest advantage against their competition, however, they are not the only Bio-Pharma’s that have joined forces to win the vaccine race.
Coalition for Epidemic Preparedness Innovations (CEPI) and GSK
Takis and Evvivax partnership for coronavirus cure
GeoVax and BravoVax Covid-19 vaccine
CEPI and CureVac
Regeneron Pharmaceuticals and U.S. Department of Health and Human Services
CEPI and University of Queensland
As an investor it’s key you understand how the competition will affect your stock, and with so much competition to generate this vaccine it becomes a lot riskier just entering in one stock.
The reality behind investing in iBio
Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.
Ibio’s recent surge, collaboration with Beijing CC Pharming, and access to the FastPhaming manufacturing facility creates a fairy tale like story. One in which iBio develops a vaccine for the coronavirus. However, we must understand the risks behind the investment. Why? Because YIG believes investors should not be lured into stocks with an uninformed view.
Investors are rallying behind iBio based on the expectation they create a viable cure and not because they are fundamentally strong stock. The story is driving up the stock price. In saying that, the coronavirus fear is well entrenched in the markets. Meaning the fairy tale story around iBio is likely to continue.
Moreover, as an investor, I would be looking at iBio’s cash flow statements. Because without substantial funding the development of a cure becomes unattainable.
I am not advising for or against the investment of iBio. Just simply acknowledging both sides so you can make an informed decision based on your own financial situation.
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The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
Written by Tyger Fitzpatrick and Patrick McLoughlin