iBio, Inc. (NYSEAMERICAN: IBIO) is flying early on in the trading session this morning, and for good reason. The company announced the commencement of a strategic commercial relationship that’s clearly a point of exitement for investors. Today, we’ll talk about:
- The new relationship;
- what we’re seeing from IBIO as a result; and
- what we’ll be watching for ahead.
IBIO Heads Up On New Commercial Relationship
As mentioned above, iBio is having an incredibly strong start to the trading session this morning after announcing a new commercial relationship. In a press release issued early this morning, the company announced the commencment of a strategic commercial relationship with CC-Pharming Ltd. The relationship surrounds the joint development of products and manufacturing facilities for the Chinese biopharmaceutical market through the use of IBIO technology.
In the release, the company said that the first product focus selected will be a therapeutic antibody, with additional, mutually selected products to be added down the line. In the release, the company sadi that it will receive service fees for the first phase that will be approximately $4.7 million. This is in exchange for process development and manufacturing services at its Texas facility for the initial product development. Also, IBIO will assist CC-Pharming in facility design to optimize for eventual manufacturing in China. Finally, CC-Pharming will manage all operations in China with iBio participating through joint ownership fo the China business and ongoing collaboration. In a statement, Robert B. Kay, Chairman and CEO at IBIO, had the following to offer:
China’s biologics development and manufacturing infrastructure is grossly inadequate for the massive population it must serve… iBio’s technology and its CDMO will enable immediate commencement of development and manufacture of biologic products – such as bio-better therapeutic antibody related to rituximab – and rapid economic development and manufacture of other products to supply the China market. CC-Pharming is an excellent partner for iBio due to the depth of its expertise and the vision we share for bringing significant product benefits of iBio’s technology and capabilities, combined with those of CC-Pharming, to the people of China.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news causes moves. In the case of iBio, the news proved to be overwhelmingly positive. So, it’s no surprise to see that the stock is making a run for the top in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:06), IBIO is trading at $0.98 per share after a gain of $0.11 per share or 12.59% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on IBIO. In particular, we’re interested in following the collaboration to see what products come down the line as a result as well as the revenue generated through the partnership. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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