Is IBIO A Better Coronavirus Stock Right Now?
It has been a great couple of months for pharmaceutical and biotech stocks of companies that have been working on coronavirus vaccines. One of the companies that have managed to emerge as a coronavirus play is that of Ibio Inc ($IBIO) and the rise in the stock has been spectacular.
What to Expect
Back in February, the stock was trading at only 33 cents a share but currently, it is trading at $6.41 a share and that reflects a rise of as much as 1842%. Considering the sort of rise the stock has enjoyed, it could be remiss if investors don’t take a closer look at the company and its business.
However, even more recently, the Ibio stock enjoyed a massive rally when it jumped by as much as 63.93% on July 20. There has not been any news yet regarding the company that could explain that significant gain. It is however believed that that company’s partnership with Beijing CC-Pharming and the possibility of coming up with a single dose coronavirus vaccine is responsible for the jump.
At this point, people are possibly wondering if Ibio could replicate the rise of Novavax, which went from a low of $3.65 a share to $151.20 a share. In addition to that, it is also necessary to note that shares of companies working on coronavirus vaccines often rise when another company suffers any kind of setback. On top of that, if Ibio does manage to get investment from the Government’s Operation Warp Speed then there is a strong possibility of the shares rising further.
Added to the Russell 2000
The month of June proved to be a strong one for the company as well. Ibio announced that on June 26, it had been added to the Russell 2000 and Russell 3000 indices. The shares were officially listed in those indices on June 29 and that proved to be another positive trigger for the stock as well. Prior to that, the company had also announced in June that the tech behemoth IBM is going to allow Ibio to use its clinical development solution named IBM Clinical Development Solution for free for 18 months.
The primary reason behind the excitement about the Ibio stock lies in the fact that the company could strike it big with a coronavirus vaccine or with a range of vaccines for different diseases.
The possibility of Ibio producing a vaccine on its own is negligible but if the company can manage to sign contracts with other companies for vaccine production, then it could be a massive boost to its business. It is likely that the stock will gain further if the company does manage to sign up contracts for the production of a proven coronavirus vaccine. Investors could do well to keep an eye on the developments at this point.
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