During the time of Ebola outbreak, there was one company whose stock price surged by 400%. The same company ended up paying $1.9 million in a false claim lawsuit, as investors accused the company of incorrect claims related to producing an experimental virus drug. Coming to the present, iBio (NYSEAMERICAN:IBIO) was trading at 31 cents toward the end of February 2020. In a matter of few trading days, IBIO stock surged by 642% to close at $2.45.The reason for the sharp move was the company's claims on work toward the development of COVID-19 vaccine. And that earlier Ebola matter? Yes, you guessed it -- iBio is the same company that had a shell out the nearly $2 million to settle the claim in fiscal 2015.While a vaccination for COVID-19 could result in windfall profits, iBio is certainly not the company I would consider for exposure.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLooking back, the company was spun-off from Integrated BioPharma in August 2008. More than a decade later and the company has not completed the development nor commercialized any vaccine or therapeutic product. This does not infuse optimism and, at best, the stock is worth speculating with limited exposure.The point I am making already seems to have been sensed by the markets. After closing at a high of $2.45 in early March, IBIO stock has started trending lower. The stock trades at $1.03 as the initial exuberance is followed by a reality check. Cash Burn Will Accelerate for iBioA key factor that makes me bearish on the company is the balance sheet and cash flow. Over the past few years, the company has been issuing new equity on a consistent basis. The reason is failure to commercialize any vaccine or therapeutic product. * 7 Small-Cap Stocks That Might Not Survive As an example, the company received $23 million in the last two fiscal years from the issuance of equity and preferred stock. During the same period, the company spent $27 million in operating activities.With a thin cash position of $3.6 million as of December 2019, it's likely that further equity issuance is coming in FY2020. Dilution is likely to depress IBIO stock in the coming quarters.The discussion on liquidity is also important because iBio claims to have entered the pre-clinical study for a COVID-19 vaccination. The entire process, starting from pre-clinical trial, phase one and phase two, will accelerate the cash burn.Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, believes that the U.S. is still 12-18 months away from developing a vaccine. Considering this time-line, the company has several quarters of cash burn.If a vaccine is developed, equity dilution factor will be more than offset by windfall profits. However, I would be cautious with a company that has failed to commercialize any vaccine in 12 years of operation. Looking Beyond the COVID-19 VaccineBesides rushing into the COVID-19 vaccine program, iBio is also in a pre-clinical trial stage for IBIO-100. The drug is targeted for potential treatment of systemic scleroderma and pulmonary fibrosis.The idiopathic pulmonary fibrosis market is likely to grow at a CAGR of 11.9% through 2023. This provides the company with growth visibility if the drug is developed. * 30 Stocks on a Deathwatch Further, the company has developed a candidate vaccine (IBIO-400) for classical swine fever. The animal vaccine market is attractive if iBio can make progress related to the vaccine.Again, the concern is that these are all potential revenue triggers, but the company's track record has been dismal. Speculators can still consider some position in IBIO stock. However, long-term investors need to give this stock a pass. Concluding Thoughts on IBIO StockThe fact that IBIO stock has trended lower after an initial spurt is indicative of the point that markets are skeptical.A poor track record, sustained cash burn and potential for more dilution are factors that are likely to keep the stock depressed.Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock-specific articles with a focus on the technology, energy and commodities sector. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * This Stock Picker's Latest Video Just Went Viral * The 1 Stock All Retirees Must Own The post IBIO Stock Will Continue to Slide Lower After Speculative COVID-19 Surge appeared first on InvestorPlace.
IBIO, INC. (NYSE AMERICAN: IBIO) (“IBIO” OR THE “COMPANY”), today announced that its Board of Directors has decided it will not seek authority from the shareholders at the 2019 Annual Meeting (“Annual Meeting”) to effect a reverse split of its issued and outstanding shares of common stock and, accordingly, Proposal No. 5 in the Definitive Proxy Statement filed with the Securities and Exchange Commission on January 23, 2020 (the “Proxy Statement”) for such authority has been withdrawn from the agenda for the Annual Meeting. In making its decision, the Board took the trading history and the results of meetings with representatives of various investment banks, investment funds, and other members of the investment community into account when it concluded that the market for iBio’s common stock (per-share market pricing and liquidity), investor interest, and our financing and capital-raising abilities were satisfactory at this time and might not be materially enhanced if our shareholders were to provide the reverse split authority initially sought by Proposal No. 5.
NEW YORK, March 26, 2020 (GLOBE NEWSWIRE) -- iBio, Inc. (NYSE AMERICAN:IBIO) (“iBio” or the “Company”), a biologics contract manufacturing organization and biotechnology company, today announced that immunization studies for its SARS-CoV-2 Virus-Like Particle (“VLP”) program (“IBIO-200”) are proceeding at Texas A&M University System (“TAMUS”) laboratories. The work is being performed as part of the Master Joint Development Agreement established between iBio and TAMUS in 2016.
Right from the get-go, the bull and bear case for iBio (NYSEAMERICAN:IBIO) is readily apparent. On one hand, IBIO stock skyrocketed this year due to the underlying company being one of the competitors to produce a solution for the novel coronavirus.Source: Shutterstock On the other hand, the small pharmaceutical company hasn't been relevant for years. Put another way, you don't want to end up holding the bag.Judging from the history of IBIO stock, holding the bag seems a more likely scenario than attaining incredible wealth. Shares ebbed and flowed from extreme heights to devastating lows, aligning with prior health scares. Obviously, prospective buyers worry about a repeat scenario. Therefore, many if not most of my InvestorPlace colleagues have urged caution toward this name, and I'm no exception.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt the same time, this time could be different for IBIO stock. Though I hate to use that phrase, Covid-19 has shattered the pharmaceutical paradigm. Eli Dourado, senior research fellow at The Center for Growth and Opportunity at Utah State University, states:One can hope that, given recent events, we will invest more resources with more urgency in biotech to be able to better respond to future biological crises. This could lead to a boom in new biological understanding and ultimately in new cures in the next decade. By removing medical regulations like restrictions on medical license portability, we have become more able to respond to the crisis.Because of the unprecedented devastation of the coronavirus, future government policies will likely focus on mitigation. And that means enhanced incentives for all pharmaceuticals on the frontlines of infectious disease warfare, from giants like Gilead Sciences (NASDAQ:GILD) to minnows like Inovio Pharmaceuticals (NASDAQ:INO). Economic Devastation a Strange CatalystBut within this total cost picture of the coronavirus, the most disruptive - as I'll argue below - is the economic component. As Dourado states, we need a "…credible public health response to return robust growth to the economy."Unfortunately, that growth may not come for some time. That's because we have expended far too many resources too quickly. In doing so, we prevented one crisis but facilitated another one which could be much more calamitous.At time of writing, nearly 48,000 Americans have perished from Covid-19. Utilizing this figure, I multiplied it by the average salary in the U.S. (roughly a little over $56,000) and by an assumption of 40 working years. Then, I adjusted down the total to account for the fact that most Covid-19 victims are significantly older and therefore, on paper, have little to no economic value. Click to Enlarge Source: Chart by Josh Enomoto With this very rudimentary method, I calculated that over four decades, the current human losses translate to an economic impact of $32.3 billion.Interestingly, if we assume the government's worst-case scenario for coronavirus-related deaths (1.7 million fatalities), we would incur an economic impact of $1.15 trillion over 40 years.Of course, these are awful costs that represent real human pain. But over four decades, the costs are manageable. Instead, what we have done is, at a minimum, spent $2 trillion to support the economy during this unprecedented crisis. Combined with other mitigation efforts and large-scale opportunity costs, we could be talking about several more trillions.Thus, in the worst situation, we would have spent multiple trillions to save one trillion. Under any other circumstance, this would be considered a disastrously stupid economic decision.But if a pharmaceutical firm could change this narrative positively, it would have a substantially asymmetric impact; hence, the speculative interest toward IBIO stock. Great at Doctoring, Bad at ChessPrior to this pandemic, I've never heard of Dr. Anthony Fauci. Now, he has become the face of the coronavirus treatment. Though I respect his medical advice, I'm almost certain that he stinks at chess.Why? When you watch chess masters at their craft, they are never afraid to make tough decisions. In other words, nobody wins a match with all their pieces on the board - quite the contrary.In my opinion, Fauci has undue influence on our national policies. At a certain point, President Trump must brush him aside and act as the commander-in-chief. That means making tough decisions. If that involves knowingly sacrificing a million Americans to save the rest of the country, so be it.No one said this job would be easy.Simultaneously, the federal government did make it easier for pharmaceuticals to advance quick solutions for infectious diseases. And that's why IBIO stock may continue to see upside momentum. If any one of these mini-pharmas could come up with a viable therapy, the current or future administrations can have their cake and eat it too.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post The Coronavirus Makes iBio Finally Relevant appeared first on InvestorPlace.
Shares of iBio Inc. soared another 174% Friday, bringing their weekly gain to 689%, on hopes for the company's partnership with Beijing CC-Pharming Ltd. on a plant-based vaccine to treat the coronavirus. The news was first announced in early February with the company aiming to use its FastPharming facility, which was set up to create rapid delivery of medical countermeasures to treat a pandemic. The partnership aims to leverage CC-Pharming's work on Middle East Respiratory Syndrome, or MERS, another coronavirus, and iBio's manufacturing processes in plant-based expression systems. On Friday, iBio filed a shelf registration to issue up to $100 million in securities. iBio shares have gained 767% in the year to date, while the S&P 500 has gained 11%.
Shares of tiny biotech iBio Inc. surged another 19% in premarket trade Thursday, on continued strong hopes for its partnership with a Chinese company on a plant-based vaccine to treat the coronavirus. In the latest news on iBio, which has seen its stock gain 767% in the year so far, the company on Monday canceled plans for a reverse stock split, which was needed before the recent rally to avoid a delisting. That news led to some profit taking this week, that has the stock showing a week-to-date decline of about 12%. The stock has mostly rallied since it announced the partnership last month with Beijing CC-Pharming Ltd. The company is aiming to use its FastPharming facility, which was set up to create rapid delivery of medical countermeasures to treat a pandemic. The partnership aims to leverage CC-Pharming's work on Middle East respiratory syndrome, or MERS, another coronavirus, and iBio's manufacturing processes in plant-based expression systems. New York-based iBio specializes in plant-based biologics manufacturing.
NEW YORK, March 20, 2020 (GLOBE NEWSWIRE) -- iBio, Inc. (NYSE AMERICAN:IBIO) (“iBio” or the “Company”), a biologics contract manufacturing organization and biotechnology company, today announced that it has joined the Alliance for Biosecurity, a coalition of biopharmaceutical companies – along with laboratory and academic partners – that promotes a strong public-private partnership in order to ensure the medical countermeasures that protect public health are effective and readily available. The Alliance for Biosecurity supports national health security by advocating for public policies and funding to support the rapid development, production, stockpiling, and distribution of critically needed medical countermeasures that are used to prevent and respond to a variety of threats.
We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think […]
IBIO, INC. (NYSE AMERICAN: IBIO) (“IBIO” OR THE “COMPANY”), today announced that the 2019 annual meeting of stockholders (the “Annual Meeting”) originally scheduled to be held on Monday, February 10, 2020, has been postponed and will now be held on March 5, 2020, at 9:30 a.m. ET. The Annual Meeting has been postponed to March 5, 2020 to ensure that all stockholders receive materials required by the proxy rules under the Securities Exchange Act of 1934 and the requirements under Schedule 14A. No changes have been made to the record date, the location of the meeting or the proposals to be brought before the Annual Meeting, which are presented in the Proxy Statement.
Under the MSAs, IDRI will support pre-clinical development and provide clinical trial oversight, while iBio will provide process development and manufacturing services to IDRI, as needed. Additionally, the MoU calls for iBio and IDRI to establish a separate, additional agreement within the next 60 days if the Company opts to include one of IDRI’s novel adjuvants in the COVID-19 vaccine development program (“IBIO-200”).
NEW YORK, March 26, 2020 -- iBio, Inc. (NYSE AMERICAN:IBIO) (“iBio” or the “Company”) today announced that it has entered into a second Statement of Work under its Master Joint.
iBio (NYSEMKT:IBIO) is a nano-cap bio-pharmaceutical company which uses a technique called FastPharming to develop antibodies, other therapeutic proteins and vaccines from plants. It's an interesting concept (and a compelling COVID-19 play), and one reason IBIO stock is up 500% year-to-date.Source: Shutterstock Before financial markets across the globe tumbled on concerns that COVID-19 will bring the global economy to a screeching halt, and some investors have rushed into "coronavirus stocks," which stand to benefit from the spread of the coronavirus (and coronavirus hysteria) iBio was just an "OK" stock.IBIO stock exploded higher in 2020 because the company is working on a coronavirus vaccine. The hope is that, if this vaccine passes clinical trials and becomes a product in 2021, it will generate huge amounts of revenue for this tiny, $100 million company.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWill that happen?I have my doubts, and so I think investors should be cautious when looking at IBIO stock. Shares may continue to stay hot so long as COVID-19 spreads. But, once this spread stops (and inevitably, it will) this stock looks susceptible to give back all of its gains. COVID-19 Is a Temporary ProblemThe novel coronavirus outbreak is a big, serious, and scary thing. It has already infected over 100,000 people across the globe. When all is said and done, that number could easily rise to 200,000 or more. At the same time, it's killed over 4,000 people, and that number could wind up being 5,000 or 6,000-plus. * 7 Stocks to Sell as We Enter a Bear Market Governments across the globe should not take this issue lightly. Nor should consumers. In fact, the more serious they treat the issue today, the better off everyone will be as a result.But, COVID-19 is still just an epidemic/pandemic. Like all other epidemics/pandemics before it, this too shall pass.Strict quarantining measures in South Korea and China have all but entirely stopped the spread of the virus in those countries. That only took a few months. Warmer weather come April or May should also help slow the virus down (if not entirely kill it). Multiple vaccines have already been created, and those vaccines are now going through testing, with products likely widely available in 2021.In other words, it looks increasingly likely that the global coronavirus outbreak will start to slow in April, and potentially come to a halt in May or June. The virus may stick around for longer than that. But, come 2021, we should have a vaccine to fight it.So, as scary as COVID-19 is, it's also temporary. iBio Is Not a Sure-Fire SuccessCOVID-19 being a temporary problem is not a good thing for IBIO stock.Several biotech companies have rushed to develop a coronavirus vaccine or treatment in the past month. Many have come up with potential solutions. Those solutions are now going through clinical trials.In other words, iBio is not unique in working on a COVID-19 vaccine. Everyone else is doing it, too. And it's far more likely that the company that actually creates a vaccine which is widely used in 2021, will be a big biotech company with more resources, like Gilead (NYSE:GILD).So, iBio is anything but a sure-fire success when it comes to making a bunch of money off a COVID-19 cure. In fact, the chances that happens are quite slim, in my opinion.From this perspective, the big gains in IBIO stock are being fueled by investor hysteria. That is, investors are seeing stocks fall left and right, they are quickly looking for any and all stocks that could actually win from coronavirus, and they are rushing into those stocks to steady their portfolios, without really considering the fundamentals.Once the virus stops spreading, this hysteria will stop. When it does, IBIO stock looks susceptible to give back all of its gains. Bottom Line on IBIO StockI understand the attraction of piling into coronavirus stocks at this point in time. After all, they are the only stocks in the market that are going higher right now.But, most of these plays are "get-in, get-out quick" plays. They aren't solid long term investments. So, for long-term investors, shying away from highly speculative coronavirus stocks like IBIO is the best move.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the world's top stock pickers by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he did not hold any positions in any of the aforementioned securities. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 7 Stocks to Sell as We Enter a Bear Market * 4 Energy Stocks Paying Jaw-Dropping Dividends * 3 Stocks to Buy That Will Dodge Any Volatile Market The post iBio Stock Is Unlikely a Coronavirus Winner and Thus a Real Gamble appeared first on InvestorPlace.
NEW YORK, March 18, 2020 (GLOBE NEWSWIRE) -- iBio, Inc. (NYSE AMERICAN:IBIO) (“iBio” or the “Company”), a biologics contract manufacturing organization and biotechnology company, today announced its progress towards developing vaccine candidates for preventing infection from the SARS-CoV-2 virus that causes the COVID-19 coronavirus disease. On March 11, 2020, iBio filed four provisional patent applications with the U.S. Patent and Trademark Office in support of the VLP platform, as well as other technologies for treating or preventing infections with the SARS-CoV-2 virus. “We are pleased with both the speed of our development activities and the quality of the VLPs our technology is yielding in practice,” said Tom Isett, Co-Chairman & CEO of iBio.
- Company Expands Involvement in the Manufacturing USA® Network, Joining the National Institute for Innovation in Manufacturing Biopharmaceuticals - NEW YORK , April 27,.
NEW YORK, March 12, 2020 (GLOBE NEWSWIRE) -- iBio, Inc. (NYSE AMERICAN:IBIO) (“iBio” or the “Company”) today announced the appointment of accomplished life sciences executive, Thomas F. Isett, as its Co-Chairman and Chief Executive Officer. Mr. Isett, a current member of iBio’s Board of Directors, succeeds Robert B. Kay, who has retired from the role as Chief Executive Officer, but will remain as Co-Chairman and member of the Board.
We're starting to see a little light at the end of the coronavirus tunnel. State economies are slowly reopening and the market has recovered mightily from March's historic losses.It's true that as we go forward, the lingering effects of stay-at-home orders, a spiking unemployment rate and desperate stimulus measures make for record uncertainty. But we are also starting to understand which types of stocks ought to benefit when the crisis is resolved. * 7 Excellent Penny Stocks Ready to Roar Here are 7 of the top-rated stocks to buy for a post-crisis rally:InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Co-Diagnostics (NASDAQ:CODX) (A) * Humana (NYSE:HUM) (A) * iBio (NYSE:IBIO) (A) * Moderna (NASDAQ:MRNA) (A) * Alibaba (NYSE:BABA) (B) * Square (NYSE:SQ) (B)Four of these stocks hold "A" ratings on my Portfolio Grader, while two hold "B" ratings. All make smart buys here. Co-Diagnostics (CODX)Source: Shutterstock If you're looking for a post-crisis bump, no list of stocks to buy would be complete without somehow representing the healthcare sector.Enterprising investors should consider CODX as we transition to a new era. Regardless of one's personal thoughts on how to best handle the days ahead, one thing is certain: testing will be absolutely central to any return to normal.For reasons both scientific and psychological, the widespread demand for Covid-19 testing is one of the only givens in these uncertain times. CODX, a previously little-known diagnostics company, was founded in 2013 with a focus on the sale of reagents needed for coronavirus tests.Although Co-Diagnostics shares fell after the most recent earnings report, the roughly $600 million CODX, which has been increasingly watched by investors, makes test kits that should be an important part of re-opening the U.S. economy in 2020, even if accuracy doesn't hit the 100% level the company has claimed.Rating: (A) Humana (HUM)Health insurer Humana has been absolutely shining in 2020, despite the novel coronavirus wreaking havoc across the economy. Shares are up more than 60% year-to-date, and the Louisville, Kentucky-based health plan giant is coming off a killer first-quarter earnings report.In sharp contrast to rivals like Anthem (NYSE:ANTM), which recently withdrew its full-year 2020 guidance, Humana posted blowout Q1 earnings. The company reported revenue of $18.93 billion against analyst expectations for $18.38 billion. On the earnings per share (EPS) side, HUM stock reported EPS of $5.40 versus the $4.84 consensus expectation.The top- and bottom-line beats were also accompanied by an optimistic outlook for the rest of 2020; Humana guided for EPS between $18.25 and $18.75, for a median of $18.50, above the $18.44 per share consensus expectations. * 7 Excellent Penny Stocks Ready to Roar Rating: (A) iBio (IBIO)Source: Shutterstock If there is a coronavirus vaccine, the small-cap biotech iBio could end up being a major beneficiary. Although certainly more speculative in nature than a stock like Humana, the roughly $100 million IBIO could see shares continue to surge when a vaccine is rolled out. Shares of IBIO have already jumped about 500% in 2020, but there's still upside to be had.That's because the company is boasting capacity of about 500 million doses should their much-anticipated vaccine come to fruition. Few investors take the time to think through not just the companies that are researching the vaccine itself, but those that will be necessary to manufacture and distribute the vaccine.The New York, New York-based IBIO has a Texas manufacturing facility that should be able to make 500 million doses of a vaccine annually -- the sort of capacity necessary when a vaccine is invented. In theory, this should be enough capacity to supply and vaccinate not just all of the U.S. (328 million people), but also the entire populations of Mexico (126 million) and Canada (38 million).Rating: (A) Moderna (MRNA)Source: Shutterstock The source of some major market-moving news in recent days, Cambridge, Massachusetts-based Moderna is a clinical biotechnology company. As its ticker indicates, it uses messenger RNA (mRNA) in vaccines and other treatments for infectious diseases.Promising early results in a coronavirus vaccine trial in human patients vaulted MRNA shares to all-time highs and helped send the entire market higher to boot. The phase one trial included 45 participants and saw the production of antibodies in 100% of them, a very encouraging sign as the entire world races to come up with an efficacious vaccine that can be manufactured and distributed at scale. * 7 Excellent Penny Stocks Ready to Roar Rating: (A) Alibaba (BABA)Source: BigTunaOnline / Shutterstock.com Who would've thought that one of the largest companies in China would be listed as one of the best stocks to buy in a post-crisis rally? Although Wuhan, China, was the early epicenter of the global pandemic, China's swift moves to lockdown its sprawling country and rapidly rollout contact tracing mitigated the harm of the pandemic.And BABA stock, for its part, has held up quite well. Like its closest American counterpart Amazon.com (NASDAQ:AMZN), Alibaba has actually leveraged it large market share and impressive logistics network to cement its status as a powerhouse in e-commerce, which has gotten an obvious boost as mandated lockdowns dried up demand across Chinese brick-and-mortar retailers.Trading at 22 times earnings and with a market cap above $500 billion, BABA offers a unique combination of size, growth and affordability. On the growth side, it saw revenue jump 38% last quarter and earnings per share increase 55%.Rating: (B) Square (SQ)Source: Jonathan Weiss / Shutterstock.com Last but not least, payments company Square rounds out our list of the top-rated stocks to buy when the crisis resolves.The provider of point-of-sale solutions for businesses has been a growth stock for some time now, and its solutions include contactless payments -- something that should doubtlessly gain share in the months and years ahead as the pandemic changes consumer behavior.Revenue has grown at a 41% clip over the last five years, and analysts expect profits to be the next metric to really take off in coming years, with consensus expectations calling for a 31% compound annual growth rate in earnings per share over the next five years. * 7 Excellent Penny Stocks Ready to Roar Rating: (B)Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 6 Top-Rated Stocks for a Post-Coronavirus-Crisis Bump appeared first on InvestorPlace.
We can readily understand why investors are attracted to unprofitable companies. For example, biotech and mining...
iBio, Inc. (NYSE: IBIO) shares are trading higher after the company provided an update on its COVID-19 vaccine manufacturing capacity. The company estimates it can make roughly 500 million doses of COVID-19 vaccines from its FastPharming facility."If our own proprietary SARS-CoV-2 Virus-Like Particle program, IBIO-200, results in an approved vaccine, we estimate that we could make about 500 million doses of high-quality product annually at our Texas facility, depending upon the potency we see in the clinic," said Tom Isett, Co-Chairman and CEO of iBio.iBio is a part of the health care sector. Its main business is commercialized technologies and product candidates and manufacturing services to clients and collaborators.iBio shares were trading up 23.30% at $1.12 on Tuesday at time of publication. The company has a 52-week high of $3.40 and a 52-week low of $0.05.See more from Benzinga * Why UPS Shares Are Trading Lower Today * Why Philip Morris Is Trading Lower Today * Why IBM's Stock Is Trading Lower Today(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The novel coronavirus pandemic has wreaked havoc on markets, and just when stocks are into recovery mode, we have the specter of a recession to reckon with. If not an outright depression. That's going to cause challenges for many sectors. However, if there's a bright spot in all this, it's biotech stocks.With the scramble for viral and antibody testing kits, and the ultimate goal of finding a vaccine for Covid-19, many biotech companies are suddenly in the spotlight. Even those that aren't directly working on a Covid-related solution look more attractive. Besides the entire industry getting more attention than usual, investors know they're less at risk of a consumer spending crunch that could hit tech companies like Apple (NASDAQ:AAPL). * 10 of the Best Long-Term Stocks to Buy in This Bear Market With that lead-up, here are seven biotech stocks that are positioned to pay off nicely.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Co-Diagnostics (NASDAQ:CODX) * iBioPharma (NYSE:IBIO) * Moderna (NASDAQ:MRNA) * Biogen (NASDAQ:BIIB) * Gilead Sciences (NASDAQ:GLID) * Vertex Pharmaceuticals (NASDAQ:VRTX) * Inovio (NASDAQ:INO)Some have seen their share price explode this year based on their Covid-19 involvement. Even so, that would just be the start should their research pay off. Biotech Stocks to Buy: Co-Diagnostics (CODX)Source: Shutterstock You may have read my recent overview of Co-Diagnostics. This Utah-based biotech company has posted amazing growth in 2020 on the strength of its Logix Smart Covid-19 test kit. Doctors quickly learned that symptoms aren't a reliable way to determine if someone is infected with Covid-19. Accurate and fast testing for Covid-19 infections is critical to determining whether someone needs to be isolated and/or hospitalized for treatment. As the country begins to re-open, testing becomes even more critical as medical authorities monitor for potential second waves of the pandemic. Looking into the future, testing is still going to be important for years -- even if a vaccine is developed.Co-Diagnostics is one of the leading providers of Covid-19 test kits, and it's selling them to states faster than it can make them. That's over 6 million to date, with production going full blast to manufacture another 20 million tests just to keep up with current and short-term demand. CODX stock is up over 1,900% to this point in 2020, with no signs of running out of steam. iBioPharma (IBIO)Source: Shutterstock IBIO is one of the companies on the cutting edge of Covid-19 vaccine research. On March 26, the company announced its IBIO-200 vaccine candidate was being fast-tracked to pre-clinical immunization studies at Texas A&M University System's ("TAMUS") laboratories. * 7 Sluggish Stocks Hit Hard by Coronavirus This Earnings Season On April 27, the company announced the impressive scale of its manufacturing capability, should its vaccine prove to be effective:"If our own proprietary SARS-CoV-2 Virus-Like Particle ("VLP") program, IBIO-200, results in an approved vaccine, we estimate that we could make about 500 million doses of high-quality product annually at our Texas facility, depending upon the potency we see in the clinic."IBIO shares are up over 1,200% so far in 2020, but that would be a drop in the bucket should its IBIO-200 vaccine succeed. Moderna (MRNA)Source: Shutterstock Moderna is another play on the race for a Covid-19 vaccine. The American biotech company has been focused on mRNA therapy -- modifying the body's RNA to treat conditions including cancer, cardiovascular disease and infectious diseases.That is exciting in itself, but it's the infectious diseases angle that has investors watching closely. Moderna's mRNA-1273 is a candidate as a Covid-19 vaccine, and it has potential. On May 18, the company announced positive results for Phase 1 testing of the vaccine, led by the National Institute of Health. These trials showed the subjects had antibody levels at or above levels measured in recovered Covid-19 patients, without showing serious side effects.That news caused MRNA to rocket 29% in a single day of trading, and it's now up 279% so far in 2020. BioGen (BIIB)Source: Pavel Kapysh / Shutterstock.com BioGen is a biotech company based in Cambridge, Massachusetts. You may recall the name from 2019. BIIB stock tanked in March 2019, falling 29% in its worst day of trading ever, after news broke that it was ending trials for a blockbuster Alzheimer's drug called Aducanumab.Fast forward a year, and BioGen is in the hunt for a Covid-19 treatment, in partnership with Vir Biotechnology Inc (NASDAQ:VIR). In March, it was announced the two companies are working on developing antibodies as potential treatments for Covid-19. BIIB stock has been on a roller coaster this year -- although it has still managed to post modest 5% growth -- but there are two prizes in play. First, that Vir partnership could pay off. And second, Aducanumab (the Alzheimer's drug) is back in play. The company announced new phase 3 clinical trials in January. Those were subsequently pushed to the third quarter (news that the market didn't take kindly to), but the new clinical trials raise hope that the company has a winner in Aducanumab. * 7 Dow Jones Stocks to Buy With Fortress-Like Balance Sheets With nearly 50 million people currently suffering from Alzheimers worldwide, the potential payoff for Aducanumab is massive. Gilead Sciences (GLID)Source: Casimiro PT / Shutterstock.com Regular readers know that Gilead Sciences is considered a strong buy right now. This biotech company was the first to get government approval for a coronavirus treatment.On May 1, FDA-approval was issued for use of Gilead's remdesivir drug for treatment of Covid-19. Remdesivir may not be a miracle cure, but clinical trials show it has reduced the recovery time required for some patients. With many hospitals facing bed shortages, anything that reduces the time Covid-19 patients spend there is a big win, and Gilead has donated 1.5 million vials of the drug.The Institute for Clinical and Economic Review (ICER) -- a pharma industry watchdog -- recently assessed the fair sticker price for remdesivir therapy at up to to $4,460 per patient. That has real potential upside for GLID stock. If the success continues and remdesivir becomes a go-treatment for Covid-19, Piper Sandler analysts project it could generate up to $2 billion in revenue for Gilead in 2020 alone -- even after giving away those 1.5 million doses.At this point, GLID stock has posted 13% growth so far in 2020, even though it is down significantly from its $84 close (a two-year high) on April 30. Vertex Pharmaceuticals (VRTX)Source: Shutterstock Boston-based Vertex has posted 30% growth so far in 2020. This biopharmaceutical company isn't focused on Covid-19 research. So why is VRTX seeing a growth spurt?It isn't. Unlike many of the biotech and pharmaceutical companies that are suddenly seeing big gains in anticipation of a payoff from coronavirus-related projects, Vertex has been on a steady growth path since 2017, and especially since the fall of 2019. That's continuing into 2020.The company sells three different drugs for the treatment of cystic fibrosis, and all but owns that market. The latest treatment from Vertex -- Trikafta -- was approved by the FDA last October, and is applicable to 90% of global CF patients. Thus the accelerated pace of growth for VRTX stock starting last October. * 7 Tech Stocks That Are Bolstered by Contact Tracing Initiatives With revenue up 77% in the first quarter, Vertex upped its full-year-revenue projections, when so many other companies have been busy slashing them. Inovio (INO)Source: Shutterstock Finally, Inovio, another biotech company that's gotten the nod here before.This is a company with a proven record of quickly bringing effective solutions to market for vexing diseases. This includes having a treatment to clinic for Ebola in 15 months, nine months for MERS and, six and a half months for Zika.Is Inovio on the hunt for a coronavirus vaccine? You bet! The company currently has 40 humans enrolled in a phase 1 clinical trial, with preliminary data expected to be seen in June. Those trials have big backers, by the way, with both the Department of Defense and The Bill & Melinda Gates Foundation ponying up millions to accelerate testing.INO stock has performed very well in 2020, posting gains over 390%.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 7 Top-Rated Biotech Stocks to Buy on the Hunt for a Vaccine appeared first on InvestorPlace.
Is iBio (NYSEMKT:IBIO) on the cusp of a game changer? Or is this biotech name all talk? That's the question speculators are asking as IBIO stock soars to new highs. While the company could potentially bring a vaccine to market for the coronavirus from China, buying shares at today's prices may not be a winning proposition.Source: Shutterstock There are many reasons why. This isn't iBio's first time capitalizing on a pandemic. As InvestorPlace's Vince Martin discussed March 16, the company pulled a similar move during the 2014 Ebola outbreak. Similar to today, speculators rushed in, bidding up shares, as the company announced plans to help develop an Ebola vaccine.Once that outbreak faded (without the company developing a vaccine), shares fell back to prior levels. So, what makes this time different? That's up for debate. Using past as prelude, it seems safe to say iBio isn't going to solve this crisis. Yet, with their recently-announced progress, perhaps an actual vaccine is just around the corner.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Invest In for a Post-Coronavirus Whipsaw With speculation driving its share price, it's tough to value IBIO stock. Too little information to make it a buy. Too much unpredictability to short. Let's dive in and see why your best play is to stay on the sidelines. What Are The Odds For IBIO Stock?Determining whether a biotech stock is a buy or a sell is more art than science. Think of it like handicapping. Instead of saying "well, this stock is cheap relative to peers," or "growth is not priced into this stock," you are figuring out the odds whether a company's prospective treatment goes to market.In some investments you'll lose most of your capital. But in others, you'll see returns well above 100%. Your "winners" outpace your "losers." Yet, for most investors lacking a biotech background, this is easier said than done. Especially in the case of IBIO stock.As InvestorPlace's Dana Blankenhorn explained on March 16, iBio isn't a standard biotech play. Instead of pursuing research and development (R&D), iBio is partnering with another biotech firm (Chinese-based Beijing CC-Pharming). Basically, iBio has agreed to put into production Beijing CC-Pharming's vaccine, if and when they can bring one to market.The question is, will this deal result in a tangible vaccine? On March 18, the company issued a press release touting "development of proprietary COVID-19 vaccine candidates." In other words, they may now have the ability to pursue clinical trials.What does this mean for IBIO stock? The company could have a possible vaccine in its hands. But will this mean quick approval around the world? It depends. Approval from the FDA (Food and Drug Administration) is not an overnight process. Yet, other countries may be more willing to fast-track commercialization.Everything around iBio is pure speculation. And at the current valuation, you are making a big bet that recent developments are the start of something big. Shares Overvalued, But Don't Bet Against ThemConsidering the company's current market capitalization (around $123 million) against its existing assets, shares are overvalued. Yet, that doesn't mean this stock can't go higher. The outbreak may be fading over in China, but things are only getting started in the United States.In other words, it may be months before we start recovering from this crisis. In the meantime, speculators will remain on the hunt for ways to play this trend.As a result, IBIO stock could soar to new highs, if the company makes more progress. Shares could head back to their prior 52-week high ($3.40 per share). They could also climb higher. That's what makes the company a risky short candidate. With so many unknowns, the chances of a short squeeze are very high.But don't this take this as a reason to buy iBio shares. You could buy today at around $1.60 per share and see a quick 100% pop. Yet, you can't predict the unpredictable. You can speculate, but you really can't invest in this stock. Stay on the Sidelines, and Look For Less Uncertain OpportunitiesAs I said above, iBio is too speculative to buy, but too risky to short. If you buy shares, you are making a long-shot bet that this one company is going to solve the crisis. If you take the other side, you could wind up in a massive short-squeeze if the company makes more progress.The recent market meltdown has wrecked havoc on portfolios. But it's also given investors the opportunity to buy high quality stocks selling at low valuations.Don't waste time and risk capital on IBIO stock and other coronavirus plays. Instead, pursue less-risky, but high-upside potential buys available in today's current environment.Thomas Niel, contributor to InvestorPlace, has been writing single-stock analysis for web-based publications since 2016. As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 10 of the Best Long-Term Stocks to Buy in a Bear Market * 7 "Perfect 10" Healthcare Stocks to Buy Now * Where the FANG Stocks Sit in This Wild Market The post Don't Waste Time and Risk Capital on Coronavirus Play IBIO Stock appeared first on InvestorPlace.