The coronavirus crisis has escalated quite significantly this week after plenty of fresh cases were discovered outside China. In such a situation, many companies that might be involved in creating a vaccine for the virus have seen their stocks soar. One such company is Ibio Inc (NYSEAMERICAN:IBIO), which made significant gains on Thursday and although there was no material news regarding the company, it seems that the rally may have been related to its coronavirus vaccine.
The company had been working in collaboration with CC Pharming to develop a vaccine for the coronavirus, and it is believed that Ibio could be making an announcement about it soon.
The stock is up another 123% at $1.93 in the pre-market session.
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On the other hand, it should also be noted that the company had postponed its Annual Meeting of Investors, and it is now going to be held next week. Hence, there is possibly some belief among investors that the company could make an announcement about its vaccine at that meeting. In addition to that, investors should also keep in mind that Ibio is a heavily shorted stock, and the rally on Thursday may have been caused by what is known as a ‘short squeeze.’
Short sellers might have been trying to cover their positions and, in doing so, sent the stock price soaring.
The stock has soared by as much as 40% on Thursday, and it goes without saying that it is likely going to be in focus this week. In addition to that, it is also important to keep in mind that the company actually owns the FastPharming Facility, which had originally been established by the government to create vaccines against potential pandemics like the coronavirus.
The vaccine is likely to become a major product in the coronavirus vaccine space, and if that happens, then it is expected to be a major boost for the Ibio stock as well. Investors could keep an eye on the stock over the coming days and track the developments closely. Sign-up for continuing coverage on shares of $IBIO stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $IBIO, either long or short, and we have not been compensated for this article.