Coronavirus-Fighting Tech makes iBio Stock an interesting game

<p>iBio (NEWS: IBIO) spent much of the past year trading as an ear share. That changed at the end of February 2020 when the IBIO stock rose to as high as $ 3.40.

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Even though the stock only lasted a short time there, investors rushed into the stock for a reason. iBio partnered with Beijing CC-Pharming to develop a herbal vaccine. As simple as the news sounds, the partnership still allowed the company to register a $ 100 million shelf listing.

When other large companies such as AbbVie (NYSE: ABBV), Regeneron (NASDAQ: REGN) and Gilead Sciences (NASDAQ: GILD) develop coronavirus therapies from China, the IBIO stock looks more like a game.

After the IBIO share rose, the company announced that it will not attempt to reverse its shares. This is good news for investors. Instead of holding fewer shares at a higher price, the outstanding share count will be the same. The share is still trading at a decent share price and has a sound liquidity level.

On March 12, 2020, iBio announced a new CEO. Thomas Isett has a strong knowledge of self-developed product development. He has experience working in companies dedicated to biological contract development and manufacturing organizations.

Covid-19 vaccine

On February 3, 2020, iBio announced a partnership with Beijing CC-Pharming to initiate the joint development of a coronavirus vaccine. Beijing CC-Pharming’s scientific director has 25 years of experience in vaccine research and development. iBios Sylvain Marcel has experience in fast design of manufacturing processes.

iBio and Beijing CC-Pharming are at the beginning of getting a vaccine on the market. Still, investors who bought IBIO shares in the $ 3 series are investing otherwise. The herbal expression systems operate iBio’s FastPharming manufacturing facility.

The technology previously produced antibody candidates for Dengue fever and Ebola virus. The company has also conducted studies for a few vaccine candidates. These include avian influenza, seasonal influenza and human papillomavirus.

iBio uses modified “relatives of the tobacco plant to grow viral proteins for vaccines.” Beijing CC-Pharming will then work on developing the vaccine.

Balance sheet

iBio ended 2019 with $ 3.6 million in cash. It generated $ 314,000 in revenue while operating expenses amounted to $ 3.2 million. The net loss for the three-month period was $ 25.4 million.

The regular share issue provides the company with the money needed to continue its research and development activities. As the market is very interested in a coronavirus vaccine and antiviral providers, IBIO can sell the stock when needed.

Speculators are not worried about the losses. So if it comes closer to the development of a successful vaccine, the stock will reward shareholders.

Risks with IBIO stock

Stock Rover lists many warnings for iBio shares. The company reported a negative cash flow for most of the last decade. Bearish investments in the company suggest more disadvantages in the future. Over 16% of the float is sold short.

On the diagram, the convergence / divergence of lubricants was negative. What does it mean? The bearish signal means that the stock will fall after strong sales in the past week.

iBio is a risky investment and is in fact only a good trade for speculators. If the stock shoots higher again, consider locking in your winnings.

Chris Lau is a contributing author to InvestorPlace.com and many other financial websites. Chris has over 20 years of investment experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace at Seeking Alpha. He shares his stock choices so that readers get original insights that help improve return on investment. At the time of writing, Chris had no position in any of the above securities.