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.
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.
"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."
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.