On Tuesday, Chardan Capital Markets began coverage of iBio, Inc. (NYSE:IBIO)stock, assigning a Buy rating and setting a price target of $5.00.
The firm's analysis highlighted the potential of iBio's proprietary AI-guided drug discovery platform, which is expected to generate advanced engineered antibodies for challenging drug targets while reducing risks in later development stages.
The company's strategic shift towards antibody drug discovery and development has been marked by significant milestones. In September 2022, iBio completed the acquisition of RubrYc Therapeutics, Inc., integrating an AI-driven drug discovery platform into its operations.
This was followed by the decision in November 2022 to sell its Contract Development and Manufacturing Organization (CDMO) facility, which led to a workforce reduction by approximately 60%.
Further focusing its efforts, iBio recently entered into a partnership with AstralBio to concentrate on the discovery, engineering, and development of novel antibodies aimed at treating obesity and other cardiometabolic conditions.
Chardan's coverage notes that this pivot has turned iBio into a compelling micro-cap story, suitable for investors who are prepared for a longer investment horizon.
However, investors are cautioned that the company is likely to require additional capital in the first half of 2025, prior to the availability of any human clinical data.
Chardan's report underscores the core technology of iBio's platform, which combines precision medicine biology with machine learning and artificial intelligence, as a key factor in the firm's optimistic outlook for the stock.
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