Which Way for IBIO Inc [IBIO]?

IBIO Inc [NYSE: IBIO] is trading at an interesting price-level at the moment. It is at a key support level between $2 and $3. At this level, the stock could see a bullish reversal put it on a new uptrend, or a break in the support, leading to a continuation of the downtrend.

While the price can go either way, there is a good chance that IBIO is undervalued at current prices and could be up for a major bullish breakout in the near-term.   Some of the reasons why this stock could be up for exponential gains are as below:

Progress on its COVID-19 vaccine

The whole world is waiting patiently for a breakthrough in a COVID-19 vaccine. As such, any company that will record a breakthrough on this front is likely to experience FOMO in its stock price.  IBIO is one of the companies that have shown potential in coming up with a working vaccine. It is trying out two potential vaccines named IBIO-200 and IBIO-201.

While the two vaccines have shown potential, the company recently stated that it was channeling its energies on IBIO-201, as it triggered the production of more antibodies helping the body fight against COVID-19. The CEO specifically stated that while IBIO-200 produced a good amount of antibodies, IBIO-201 gave a higher amount of anti-spike antibodies that neutralized COVID-19.

He added that they were planning on pushing forward with toxicology studies on IBIO-201 and clinical development of the same later. Essentially, this means that the company is among those that are in pole position to come up with a working vaccine. This anticipation is likely to keep the stock momentum up in the short-term. In case of a clear break in the company’s efforts, it could see a rally that could possibly see it reverse all the losses experienced for the better part of 2020.

Low interest rates

Recently, the Federal Reserve announced that it would be maintaining interest rates at near-zero. This means that fixed income securities are unlikely to be attractive in the near-term, and most money could flow into stocks. Biotech stocks, especially those focused on the development of COVID-19 vaccines and treatments stand to gain the most.

That’s because they offer a higher potential for gains in case they come up with a viable solution to the pandemic. IBIO with two high potential vaccines is one of the companies doing well on this front and likely to keep attracting investors.

About IBIO Inc

IBIO Inc is a biotech company focused on the development and manufacture for a variety of treatments. It is based in New York, New York.