On 9th October’14, BrilliantPennyStocks.com initiated coverage on IBIO. The stock moved up by 105.48% since the coverage was initiated.
Biotech firm Ibio Inc (NYSEMKT:IBIO) share price tanked by nearly 8 percent during trading on 24th October. The downward spiral in the stock’s prospects started early last week when drug makers Icon Genetics AG and A&M Lab released press statements, which contradicted IbioInc claims. This sent the stock nose diving during trading last week, leading to a 53% dip in valuation for the week.
More Trouble Brewing – Law Firms Get Into The Act
On the back of huge losses suffered by the investor community due to the sudden dip in valuation of Ibio Inc (NYSEMKT:IBIO) a host of law firms have served notice on the management of the cornered drug maker. They plan to investigate if key officials of the drug maker were involved in “potential securities fraud” by releasing misleading claims to the media.
Reasons For The Sudden Dip In Investor Confidence
Ibio Inc (NYSEMKT:IBIO) got severely impacted after online reports emerged early last week that the drug maker commercial relationship with rival drug maker Caliber Biotherapeutics excludes any potential joint development of Ebola treating drug.
Another damaging statement emerged from drug maker A&M Lab. A&M Lab clarified that any new “plant-based ZMapp manufacturing” of experimental drug to treat Ebola hast to conform to methods which are “identical to what the maker of the drug had already vetted in animals.” This meant that Ibio Inc (NYSEMKT:IBIO) patented method to produce the experimental drug cannot not be used at this stage to manufacture the much in demand Ebola drugs.
Ibio Inc Claims
Over the past three weeks, the management team at Ibio Inc (NYSEMKT:IBIO) had authorized a series of updates, which were contrary to the above assertions by A&M Labs and Caliber Bio. On 16th October, Ibio had issued a press release indicating that its patented platform is applicable to produce Ebola virus. It had also claimed that it is closely working with Caliber Bio to further augment its Ebola offering.
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