- NYSEAMERICAN: IBIO has surged by 9%, lifting its head after a consolidation period.
- President Trump's push for obtaining and distributing a coronavirus vaccine may push it higher.
- The rally may end ahead of the November 3 vote, unless IBio Inc stands out from larger pharma firms.
All boats rise with the tide – that is what some economists say when talking about the benefits of broad growth, and it seems relevant to stocks of firms trying to develop treatments for coronavirus. iBio Inc is in the race to produce a COVID-19 vaccine.
Its share soared earlier in the year but then cooled down when several front-runners emerged. These include AstraZeneca, Pfizer, and Moderan, as well as several companies in China and also Russia. When some companies are busy with a Phase 3 trial – the final broad stage before receiving a regulatory approval – those that have not jumped ahead saw their share falling behind.
However, there is a fresh interest in the broad spectrum of pharma firms. IBio promise is that it can mass-produce immunization doses using its FastPharming technology. With the world hungry for fast distribution – not only the development – of a vaccine, but there is also room for gains.
Nevertheless, perhaps the biggest driver of NYSEAMERICAN: IBIO comes from the White House. President Donald Trump wants to declare victory on COVID-19 – putting an end to his mishandling of the crisis. He said that widespread immunization could be available already in October, ahead of the November 3 vote.
That urge allowed him to contradict top experts in his administration that saw available immunization coming only in the middle of next year. Will it also trigger fresh funding for pharma firms? The federal government has a special program called Operation Warp Speed (OWS) for rapidly deploying cash.
iBio may eventually benefit from that – and shares could extend their gains on the mere speculation that it happens.
iBIO Stock Price
NYSEAMERICAN: IBIO closed Thursday's trading session at $2.35, an increase of $0.20 or 9.30%. It is consolidating its gains with a drop of 2.13% at the time of writing.
The immediate upside target is $2.58, which was the peak in recent days. Further above, the round $3 mark is eyed. Support is at $2.2, a cap from earlier this week, followed by the round $2 level.
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