- NYSEAMERICAN:IBIO falls another 5.13% to end the week in the red.
- iBio Inc. falls behind competitors in the race for COVID vaccine.
NYSE:AMERICAN:IBIO has dropped a further 5.13% during Friday’s trading session, ending the week at $4.44 per share, representing a 17% decrease from the start of the week. The Biotech stock has had a rollercoaster run this week, with wild swings of a 5% gain one day and 11% losses the next. Ultimately, the losses outnumbered the gains and investors have been left wondering about the once-promising outlook of iBio-200 – the company’s second vaccine program.
Investors and analysts were bullish on the Texas-based company back when Lincoln Park Capital invested $50 million into the company ahead of their COVID vaccine research. However, little has changed for iBio Inc. since and now, the outlook seems unclear as traders approach the quarterly earnings call in mid-August. Markets may very well see iBio’s attempts at creating a vaccine fade into the background so the company can focus on something they are proven to be more efficient at handling mass production of medication or vaccines developed by other companies. If investors want to hang their hats on a long-term play, it should be with iBio as a manufacturer, not a creator.
iBio Stock Forecast
iBio does not have a history of exceeding quarterly estimates, so investors should remain cautious leading up to their earnings call. The volatility of these penny Biotech stocks is strong, and as seen earlier this week, any sort of news can cause violent upward or downward swings. The stock price seems to level out every time it hits the lows in the $4.30 range. However, if it does break that barrier on a downward trend, there is no telling how low it could go, the longer there is no announcement of a successful vaccine.