When I last wrote about iBio (NYSE:IBIO) stock a month ago it was trading above $6 after having rocketed upward. Since then it has decreased to its current $2.60 price in a stepwise manner. Investors are well aware of the volatility in playing the vaccine stock game. So it should be no surprise that IBIO stock dropped as precipitously as it rose.
Investors have not given up on the stock yet, but it does seem the chances are slimming quickly.
Nonetheless, there remains a chance. Ultimately, investors need either news from the company itself, or news of a funding deal with a government or other agency. Press of this type will be the kind of catalyst that actually substantiates all the hype surrounding iBio.
And markets still have nothing like that.
The Latest on IBIO Shares
On Aug. 10, the company released vaccine candidate results. Investors should remain cognizant of the fact that these are pre-clinical results. The testing was undertaken on mice and the next step should be to undertake human testing. The company’s CEO Tom Isett had this to say regarding the results:
“We are encouraged by these preclinical data, which demonstrate IBIO-201’s ability to generate an immune response to SARS-CoV-2 sequences and neutralize protein interaction. We expect to gain more insight as we complete data analysis of both of our Covid-19 vaccine candidates.”
The company’s public relations team did not confirm any planned human trials anywhere in the press release. Rather, they included a wishy-washy “goal” of producing a vaccine to help “our most vulnerable populations, including the elderly.”
The point here is that investors should remain wary of PR that includes statements that are well-intentioned yet short on facts. These results point to a truth investors should not ignore.
The Company Is Behind
The Covid-19 vaccine tracker of RegulatoryFocus lists 22 candidate vaccines which are further along in the development process than iBio’s. In fact, seven of these are in phase 2 and phase 3, which is significantly ahead of iBio. As investors grow more wary of the company’s ability to develop a viable vaccine share prices are decreasing.
Given the time required to pass regulatory hurdles, the news doesn’t look promising. In order for iBio to come out a winner, many vaccine candidates are likely going to have to fail. The public certainly isn’t interested in that happening.
All of that said, the company has signaled that it may be ramping up production. It lists 14 open positions on its site. All of the positions are related to manufacturing and associated operations. Of course, this could be part of a longer term plan too. But speculation is fueling a lot of activity in vaccine stocks regardless.
One thing investors who’ve bet on IBIO stock are interested in is its partnership with Beijing CC-Pharming. There doesn’t seem to be anything new regarding that relationship or anything which could potentially signal impending updates.
Again, for potential iBio investors, this looks like more indication that hopes of a vaccine from the company are dwindling.
A Final Thought on IBIO Stock
It seems likely that the run of IBIO stock is at its end.
For investors considering an investment on the hope that something is going to materialize, you shouldn’t. The timeline that would be required is long.
Again, there are 20 something other vaccine candidates further along than this one. It may be that the company later makes significant strides with its operations. However, as I mentioned in my last article about the company, it has a history of losing money.
Unless something truly earth shattering emerges from this company, it’s likely its Covid-19 vaccine hopes are over.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing. Alex Sirois did not hold shares of any of the aforementioned stocks at the time of this writing.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.