iBio Inc (IBIO)

[Thai5533]

Why iBio Could Succeed

To be fair, it’s possible this time will be different for iBio. It’s collaborating with privately held Chinese company Beijing CC-Pharming in an effort to develop a vaccine for the coronavirus . iBio’s contribution won’t be the vaccine itself, but rather its technology for producing the vaccine in quantity.

iBio uses a relative of the tobacco plant as a “bioreactor.” If CC-Pharming can find a vaccine, iBio can quickly grow the plants needed to produce massive quantities of that vaccine in a short amount of time.

But there are many roadblocks along the way — and not much evidence to suggest that the partnership will succeed. The likes of Gilead and even Inovio have more cash and resources to tackle the problem. There’s little public evidence that CC-Pharming has any technological edge. iBio has pivoted to being basically a contract manufacturer, but its $2 million of revenue suggests little progress on that front and little reason to believe it will be a key part of the industry’s response to the coronavirus.

At the least, investors should know what they’re in for when it comes to iBio. And they should remember that only a handful of companies, and maybe just one, will truly “win” when it comes to coronavirus treatments and vaccines. If iBio is a member of that select group, IBIO stock will soar. History suggests that is a giant “if.”