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Here's Why iBio Stock Surged Friday

By Joe Tenebruso - May 8, 2021 at 10:15AM

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Investors are excited about the company's new coronavirus vaccine program.

What happened

Shares of iBio (IBIO -2.10%) climbed on Friday after the biotech announced plans to develop an intriguing second-generation vaccine candidate for COVID-19. By the close of trading, iBio's stock price was up 16.7% after rising as much as 41.3% earlier in the day. 

So what

iBio's experimental vaccine, IBIO-202, targets the nucleocapsid protein (N protein) of the novel coronavirus. N proteins tend to produce an immune response and remain relatively unchanged during mutations. By targeting the N protein, iBio hopes to develop a vaccine that will be highly effective against new coronavirus variants.

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Image source: Getty Images.

"The N protein strategy of IBIO-202 is complementary to existing first-generation, S protein-directed vaccines and may be suitable as a more universal coronavirus vaccine," iBios' chief scientific officer, Martin Brenner, said in a press release.

iBio used its plant-based FastPharming System to express N protein antigens and has begun preclinical studies, the results of which are expected in its fiscal 2022 first quarter.

Now what

iBio acknowledged that competition is intense in the COVID-19 vaccine space. Yet management correctly believes there is still room for new vaccines that can help to defend against emerging coronavirus strains. Thus, should IBIO-202 prove safe and effective in clinical trials, there would likely be strong global demand for iBio's new vaccine.

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.

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