Please ensure Javascript is enabled for purposes of website accessibility

Why iBio Stock Soared Today

By Joe Tenebruso - May 5, 2021 at 7:42PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A landmark legal settlement should bolster the biotech's growth prospects.

What happened

Shares of iBio (IBIO 1.82%) surged on Wednesday after the biologics manufacturer announced it had successfully resolved a multiyear lawsuit with Fraunhofer USA. By the close of trading, iBio's stock price was up 14.7% after rising as much as 32.6% earlier in the day.

So what

The settlement confirmed iBio's ownership of key intellectual property related to its plant-based biopharmaceutical-production system. The agreement will also see iBio grant Fraunhofer USA a license to use its protein-manufacturing technology. Fraunhofer USA, in turn, will cover iBio's legal fees and send it unspecified cash payments in 2022 and 2023.

A person is celebrating in front of a computer showing a rising stock chart.

Investors cheered iBio's legal settlement. Image source: Getty Images.

"We are pleased to see this matter resolved and to receive compensation for the use of our intellectual property," iBio CEO Tom Isett said in a press release. "iBio remains committed to relentlessly innovating in the area of plant-made biologics, while respecting fair competition and protecting our IP."

Now what

iBio's FastPharming system produces proteins from plants that can be used to make vaccines and antibody treatments. It's a rapid process -- clinical product manufacturing can take as few as 14 days -- that helps iBio's pharmaceutical partners quickly and inexpensively increase their production. 

"This settlement gives assurance to our licensees and clients that they can continue to depend upon us to develop and enhance our FastPharming technologies to provide them with the speed, scalability, and eco-friendly advantages of plant-based biologics development and manufacturing from iBio," Isett said.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

iBio, Inc. Stock Quote
iBio, Inc.
$0.29 (1.82%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.