Right now there’s a lot of chatter about the iBio deal with IBM. While many are talking about it, the market so far hasn’t made a big reaction. We believe the market doesn’t realize how big of a deal it is and what a game-changer it is for iBio. As we take a closer look, iBio stock looks set to make a big move.
First up, here’s a little background iBio is a global leader in plant-based biologics manufacturing. Its FastPharming System™ combines vertical farming, automated hydroponics, and glycan engineering technologies to rapidly deliver gram quantities of high-quality monoclonal antibodies, vaccines, bioinks, and other proteins. The Company’s subsidiary, iBio CDMO LLC, provides FastPharming Contract Development and Manufacturing Services via its 130,000 square foot facility in Bryan, Texas.
Originally built in 2010 with funding from the U.S. Defense Advanced Research Projects Agency (DARPA), iBio’s FastPharming Facility was part of the “Blue Angel” initiative to establish factories capable of rapid delivery of medical countermeasures in response to a disease pandemic. iBio’s FastGlycaneering Development Service™ includes an array of new glycosylation technologies for engineering high-performance recombinant proteins. Additionally, iBio is developing proprietary products which include IBIO-100 for the treatment of fibrotic diseases and IBIO-200, a COVID-19 vaccine. For more information, visit www.ibioinc.com.
iBio Deal With IBM
Last month, IBM selected iBio to receive 18 months of use of the IBM Clinical Development (ICD) solution, free-of-charge. IBM Watson Health recently began offering its ICD solution to eligible trial sponsor organizations as part of its efforts to help support the medical community to address the COVID-19 pandemic. IBM Watson Health received interest in the offering from numerous hospitals, sponsors, contract research organizations, and academic institutions, and is currently enabling 15 COVID-19 disease trials. Tom Isett, Co-Chairman & CEO of iBio, said:
“We are deeply appreciative of IBM’s vote-of-confidence, which recognizes the potential of iBio’s COVID-19 vaccine development efforts from among the hundreds of organizations that applied for access to IBM’s ICD solution. This technology helps to support the rapid and efficient undertaking of clinical trials of iBio’s COVID-19 vaccine candidates. It also complements our FastPharming System’s core speed, quality, and scale-up advantages in the development of vaccines and therapeutics. Through strategic collaborations like this one, we believe iBio is now poised with the tools, technology, and capital necessary to compete in the fight against COVID-19.”
About iBio’s COVID-19 Vaccine Development Program
On March 11, 2020, the Company filed four provisional patent applications with the U.S. Patent and Trademark Office in support of its COVID-19 vaccine platforms. The virus-like particle program was subsequently announced on March 18, 2020. The LicKM-Subunit program was announced on June 3, 2020.
If the program(s) move into clinical trials, iBio has the capability to rapidly develop and manufacture at clinical and commercial scales in its 130,000 square foot facility in Bryan, Texas. Originally built in 2010 with funding from the U.S. Defense Advanced Research Projects Agency (DARPA), iBio’s FastPharming FacilityTM was part of the “Blue Angel” initiative to establish factories capable of rapid delivery of medical countermeasures in response to a disease pandemic.
iBio currently anticipates that data from the preclinical immunization studies of its two COVID-19 vaccine candidates, IBIO-200 and IBIO-201, which are being conducted at Texas A&M University System laboratories, will be available in Q3-2020.
The challenges related to COVID-19 are numerous. One of the biggest challenges is once a vaccine is found, how will that vaccine be manufactured in mass quantities. This is where IBIO stock comes into play. iBio estimates that the company could make about 500 million doses annually at its Texas facility.
Major News Coming?
Over the weekend, there was an interesting post from Tom Isett, Co-Chairman & CEO of iBio.
Why would he post this? The only reason we can think of is to tease a major announcement coming. This could be the catalyst that sends iBio stock to new highs.
Currently trading with a market cap of $249 million, iBio stock has enormous potential. The company has as good of a chance as any other vaccine players, yet sports one of the lowest market caps. Moderna has a $23 billion market cap, Inovio sports a $3 billion market cap, and Vaxart is valued at $593 million. If the market valued iBio the same as Vaxart, you’d have a $4.95 share price for iBio stock. At current levels and with the iBio deal with IBM, we think iBio looks to be a discount entry opportunity.
As always, good luck to everyone (except the shorts)!
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Disclosure: We have no position in NYSEMKT:IBIO or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article.