The coronavirus pandemic has led to a significant interest in companies that are working on vaccines in order to tackle the problem and many of those companies have seen their stocks soar. Ibio Inc (NYSEAMERICAN:IBIO) had been one of those stocks and after hitting its highs back in August, the stock has slumped by more than 60% due to slow progress. In this situation, it could be a good idea to figure out whether the iBio stock is still worth considering.
In this regard, it should first be noted that competitors are surging forward while iBio continues to struggle with its vaccine candidate. As many as 50 vaccine candidates are in the midst of clinical trials, while 89 more are in the preclinical stage. The iBio coronavirus vaccine is still in the preclinical stage.
The company not only has to develop the vaccine but also an expression system related to the product. In addition to that, the company is going to deploy a plant-based expression system. This is another thing that should not be ignored since the plant-based system does not have a great record in terms of success.
In addition to that, plant-based vaccines are not going to be reviewed by the United States Food and Drug Administration either since those products have been deemed as GMO (genetically modified organisms). Hence, iBio would need to invest heavily in lobbying efforts even if its vaccine does go into the clinical trial.
Pipeline and Financials
The company’s pipeline is not looking great either with regards to coronavirus related products. Although iBio has two more products for the same, none of those have actually made it to clinical trials and that is another explanation of the poor stock performance in recent months.
On the other hand, it could also be a good idea to take a look at the company’s financial situation. Over the course of the past year, iBio generated only $1.6 million in the form of revenues but ended up suffering a net loss of $38.3 million.
It is easy to see why investors might have been excited about iBio coming up with a potential vaccine for COVID 19. However, things have not panned out as was expected.
Moreover, there are better options for investors who are looking for coronavirus plays. Hence, it is perhaps a good idea to avoid iBio at this point due to the risks involved with the stock.
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