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Cantor Fitzgerald defended iBio ( NYSE: IBIO ) after the biotech announced its intention not to seek FDA clearance next year to study its multi-variant COVID-19 vaccine candidate IBIO-202 triggering a sharp decline in its shares in the morning hours Wednesday.
- The decision based on less than favorable pre-clinical data “makes sense,” Cantor analyst Kristen Kluska wrote, keeping the Overweight rating and $2.50 per share target on the stock even as the company’s model remains under review at Cantor.
- Citing IBIO’s acquisition of AI-drug discovery company RubrYc Therapeutics, Kluska welcomes the company’s decision to drop COVID-19 vaccine development and focus on immuno-oncology as the attention to the pandemic wanes.
- While the new strategic direction could “open the door to new investors,” the analyst warns that the company will seek additional funding to realize its potential in immuno-oncology, given the pre-clinical status of the assets.
- Despite its Strong Buy rating on Wall Street, IBIO has plunged ~82% over the past 12 months, as indicated in this graph.
For further details see:
iBio is right to move away from COVID-19 vaccine development - Cantor