iBio stock price target lowered to $1.60 by Brookline Capital Markets

Investing.com - Brookline Capital Markets has reduced its price target on iBio, Inc. (NASDAQ:IBIO) to $1.60 from $3.60 while maintaining a Buy rating on the stock. The stock currently trades at $0.81, down 84% over the past six months. According to InvestingPro analysis, the company’s overall Financial Health Score stands at 1.99, rated as ’FAIR’.

The revised price target reflects iBio’s recently-closed $50 million public offering of pre-funded warrants and warrants, which extends the company’s cash runway from the third quarter of 2025 to the first quarter of 2027.

This extended runway will encompass the expected acceptance of Investigational New Drug (IND) filings for two of the company’s assets, IBIO-600 and IBIO-610.

Brookline Capital Markets notes that potential exercises of warrants issued in the offering could raise up to an additional $50 million, potentially extending the company’s cash runway by less than 18 months.

The research firm’s revised target price assumes that iBio will partner both assets, pointing out that recent transactions involving obesity-related assets have included upfront payments of $50-100 million per compound.

In other recent news, iBio, Inc. has announced the pricing of a $50 million public offering to support its preclinical research programs. This offering includes pre-funded warrants to purchase common stock and Series G and H warrants. Additionally, iBio initiated another public offering to fund its cardiometabolic programs, featuring similar warrant structures. The company also received a notice from Nasdaq regarding a minimum bid price deficiency, as its stock did not meet the $1.00 per share requirement for 30 consecutive business days. iBio has until January 26, 2026, to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive business days.

Furthermore, iBio reported promising preclinical results for its amylin receptor agonist antibody, showing a 60% reduction in acute food intake in a mouse model of obesity. This development is part of a collaboration with AstralBio and focuses on selective activation of the amylin receptor. The company plans to discuss these advancements in obesity and cardiometabolic disease treatments during an upcoming conference call. CEO Martin Brenner will present strategies, including details about the Myostatin antibody IBIO-600 and new data on Activin E.

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