iBio Stock (NYSEAMERICAN:IBIO) meteoric rise, backed by solid fundamentals, shows no signs of slowing down. The stock continues to clock record highs after releasing a string of positive updates that continue to affirm long-term prospects and growth metrics. Fuelling the recent wave of explosion in the market is the confirmation of a strategic partnership for the development and testing of a new vaccine targeting the coronavirus.The coronavirus partnership has ramped up the stock's sentiments in the market at a time when the global stock market is on edge. A number of stocks have shed a substantial amount of market share but not iBio.iBio stock is already up by more than 500% in what is turning out to be a break out year for the global leader in the development of plant-based biologics. With the stock currently trading in a steep uptrend, pullbacks have so far acted as support levels from where bulls have come in and continued to buy iBio stock.Price action indicates the immediate resistance level is at the $2.40 level, after a recent pullback. A rally followed by a close above the resistance level should reaffirm the uptrend setting the stage for the stock to continue registering new highs. IBIO Daily ChartConversely, support as part of the ongoing pullback is at the $1.80 level. A sell-off below the support level could fuel further pullback below the $1.80 mark. In our view, the stock looks set to continue powering higher.
About iBio Stock
iBio casts itself as a global leader in biologics manufacturing. Its flagship product in the space is FastPharming System that combines vertical farming and automated hydroponics to deliver monoclonal antibodies, vaccines as well as other proteins.[embed]https://www.youtube.com/watch?v=xBK9-mrBnS0&feature=emb_title[/embed]
Why is iBio Stock exploding?
iBio has taken the market by storm in recent months on the signing of a joint venture development with Beijing CC-Pharming Ltd. As part of the partnership, CC-Pharming is to leverage iBio’s FastPharming System to develop and test a new 2019-nCoV seen as a potential vaccine for the havoc, causing coronavirus.The FastPharming technology at the center of the partnership has successfully produced a number of antibody candidates for addressing Ebola and Dengue fever viruses. The technology has also been used in human and animal studies for vaccine candidates.
“This is an important collaboration to develop plant-derived vaccine strategies for the emerging coronavirus outbreak here in China and around the world. IBio’s capabilities will enhance our ability to rapidly scale-up vaccine candidate production in an effort to combat the 2019-nCoV virus’ threat to global health,” said Dr. Kevin Wang (Chairman and Chief Scientific Officer, CC-Pharming)
The partnership will leverage over 25 years of vaccine research and development experience in the development of biopharmaceutical production in plant-based expression systems. If successful, the research efforts should lead to the development of final product candidates at the iBio FastPharming facility.The factory that iBio intends to use to produce the potential coronavirus vaccine was developed with funding from the Defense Advanced Research Project. The facility is well equipped for the rapid delivery of medical countermeasures on various disease pandemics.
Reverse Split Cancellation
In addition to the CC- partnership, iBio stock sentiments have also received a boost on the company’s board pulling the plug on a proposed reverse split plan. The board will no longer seek authorization from shareholders to effect a proposed reverse split of issued and outstanding shares.The decision to cancel the proposed reverse split was reached upon the company reviewing trading history as well, staging meetings with representatives from various investment banks and investment funds.
Bottom Line
iBio looks set to continue powering higher as institutional investors take note of the role the company is likely to play in combating the spread of the coronavirus. The company has on its hands a valuable technology in the name of FastPharming that looks set to be a key driver of value for many years to come.After the recent meteoric rise, profit taking has come into play, which has seen the stock pull lower. The pullback continues to provide exciting entry positions from where more buyers are likely to come in and continue pushing the stock higher.Backed by serious competitive advantages in the vaccination of coronavirus, iBio stock is an ideal play on the COVID-19 outbreak.We will be updating our subscribers as soon as we know more. For the latest updates on IBIO stock, sign up below!Disclosure: We have no position in IBIO stock and have not been compensated for this article.
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