iBio Reports Fiscal Third Quarter 2024 Financial Results and Provides Corporate Update

Rhea-AI Summary

iBio (NYSEA:IBIO) announced its fiscal third-quarter 2024 financial results ending March 31, 2024. The company reported no revenue, a net loss from continuing operations of $2.6 million ($0.71 per share), showing improvement from the previous year's $6.3 million loss ($9.53 per share). Operating expenses decreased significantly, with R&D and G&A expenses down by 66% and 23%, respectively.

iBio strengthened its cash position through a $15 million private investment in public equity (PIPE) financing and an additional $4.3 million from warrants exercised. As of April 1, 2024, the company had $17.9 million in cash and equivalents.

In corporate developments, iBio entered a collaboration with AstralBio to develop antibodies targeting cardiometabolic diseases, including obesity. The company also sold its early-stage PD-1 asset to Otsuka Pharmaceutical for $1 million upfront and potential downstream payments of up to $52.5 million. iBio's CEO, Dr. Martin Brenner, joined the Board of Directors.

Positive

• Net loss reduced to $2.6 million from $6.3 million year-over-year.
• R&D expenses decreased by 66%, and G&A expenses by 23%.
• Successful $15 million PIPE financing, enhancing cash position.
• Raised $4.3 million from the exercise of previously issued warrants.
• Collaboration with AstralBio to develop antibodies for cardiometabolic diseases.
• Sale of PD-1 asset to Otsuka Pharmaceutical for $1 million upfront and potential $52.5 million in downstream payments.
• CEO Dr. Martin Brenner appointed to the Board of Directors.

Negative

• No revenue reported for the third quarter ended March 31, 2024.
• Net loss from continuing operations was $2.6 million.
• Operating expenses, despite reductions, still reflect a loss-making business.
• Dependence on external financing to maintain cash position.

Insights

Financial Analyst

iBio's third-quarter financials reveal several critical developments for investors. The company's $15M PIPE financing significantly bolsters its cash reserves, improving its financial stability and providing the necessary capital to accelerate its development programs. This follows the exercise of previously issued warrants, contributing an additional $4.3M and the sale of the early-stage PD-1 asset to Otsuka for an upfront payment of $1M with potential downstream payments up to $52.5M.

Despite the net loss of $2.6M, this is a substantial improvement compared to the $6.3M loss in the same period last year. Notably, R&D and G&A expenses decreased by 66% and 23% respectively, reflecting the company's efforts to manage costs effectively while focusing on strategic collaborations. The significant reduction in loss and expenses indicates a disciplined approach to financial management amid challenging economic conditions.

For retail investors, the improved cash position and cost management are positive signs of fiscal responsibility and long-term viability. However, the absence of revenue remains a concern and the company’s future success heavily depends on its ability to monetize its technology and pipeline innovations.

Market Research Analyst

The collaboration with AstralBio is a noteworthy strategic move for iBio, as it represents a foray into the cardiometabolic space, which includes significant unmet medical needs such as obesity and muscle wasting. The agreement allows iBio to develop four targets, with the option to license up to three pre-clinically. This diversification into a new therapeutic area could potentially open up new revenue streams and partnerships.

iBio’s differentiation as an AI-driven antibody discovery company leveraging machine learning (ML) adds a unique competitive edge. The epitope steering and mammalian-display antibody libraries showcased at the 24th annual PepTalk conference demonstrate promising technological advancements. These could enhance the company's ability to create potent and developable antibodies, potentially reducing development timelines and costs.

For retail investors, the move into cardiometabolic diseases could be seen as a double-edged sword. While it offers potential new growth opportunities, it also introduces risks associated with venturing into a highly competitive and complex therapeutic area. The success of this collaboration and technology will be critical for the company's future valuation.

Medical Research Analyst

The strategic pivot towards cardiometabolic conditions through the collaboration with AstralBio is scientifically significant. Targeting the TGFb superfamily for treating muscle wasting and obesity is a cutting-edge approach, promising novel therapies for chronic conditions that affect millions globally. The transforming growth factor beta (TGFb) superfamily is involved in various biological processes and its modulation could lead to breakthrough treatments.

iBio's platform's ability to discover and develop best-in-class assets is highlighted by the sale of the PD-1 asset to Otsuka. This underscores the robustness and potential of their machine-learning-driven discovery process. The company's efforts to recruit key positions further emphasize its commitment to expanding its research and development capabilities.

For retail investors, the scientific promise of iBio's approach offers potential high rewards. However, it's essential to consider the inherent risks in drug development, where timelines can be long and outcomes uncertain. Success in early stages does not always translate to clinical and commercial success.

• Strengthened cash position with investment by healthcare specialist investors
• Expanding into cardio-metabolic space through AstralBio collaboration

BRYAN, Texas and SAN DIEGO, May 13, 2024 (GLOBE NEWSWIRE) -- iBio, Inc. (NYSEA:IBIO) (“iBio” or the “Company”), an AI-driven innovator of precision antibody immunotherapies, today reported financial results for the third quarter ended March 31, 2024 and provided a corporate update.

“In our third fiscal quarter, we continued to advance toward our goal of becoming a leading antibody discovery company with a differentiated machine-learning platform,” said Dr. Martin Brenner, CEO and Chief Scientific Officer. “Along with our recent equity financing, we secured a transformative partnership with AstralBio to discover and develop novel antibodies to treat obesity and other cardiometabolic diseases, with a lead program focused on targeting the transforming growth factor beta (TGFb) superfamily for treating muscle wasting and obesity. Our enhanced financial position has permitted us to accelerate the AstralBio collaboration, and we’ve already begun recruiting for key positions to support the process of identifying new molecules that are expected to simultaneously expand and diversify our pipeline. We believe we are well-positioned to advance our internal pipeline priorities in immuno-oncology and cardiometabolics, and drive partnerships in new therapeutic areas.”

Fiscal Third Quarter 2024 & Recent Corporate Updates:

• Entered into a securities purchase agreement for a fully subscribed private investment in public equity (“PIPE”) financing with several institutional investors and an accredited investor in March, and consummated the financing in April for gross proceeds of approximately $15.0M before deducting placement agent fees and offering expenses.
• Entered into a collaboration with AstralBio, Inc. to provide an exclusive license in the cardiometabolic and obesity space. iBio will develop four targets of interest, with the Company having the rights to license up to three of these targets prior to entering the clinic.
• In February, iBio closed the sale of its early-stage PD-1 asset to Otsuka Pharmaceutical Co., Ltd. (“Otsuka”) for $1M in upfront cash with contingent downstream payments of up to $52.5M, a pivotal moment that showcased the power of iBio’s platform to discover best-in-class assets.
• Strengthened iBio’s cash position after previously issued warrants were exercised for proceeds of approximately $4.3M.
• Appointed iBio’s CEO and Chief Scientific Officer, Dr. Martin Brenner, to the Board of Directors, effective June 1, 2024.
• Presented data on the company’s technology stack, demonstrating how its machine learning (ML)-driven epitope steering and mammalian-display antibody libraries efficiently discover diverse T-cell engager arms tuned for potency, toxicity, developability, and cyno cross-reactivity at the 24^th annual PepTalk conference.

Fiscal Third Quarter 2024 Financial Results:

• No revenue was reported for the third quarter ended March 31, 2024.
  
• R&D and G&A expenses for the third quarter of fiscal 2024 decreased approximately 66% and 23%, respectively, over the comparable period in fiscal 2023, reflecting the Company’s cash preservation strategy and focus on collaboration partnerships. Net loss from continuing operations for the third quarter ended March 31, 2024, was approximately $2.6 million, or $0.71 per share, compared to a net loss of approximately $6.3 million, or $9.53 per share, in the same period of 2023.
  
• Cash, cash equivalents and restricted cash as of March 31, 2024 was approximately $6.4 million, inclusive of $1.1 million of restricted cash. On April 1, 2024, iBio received net proceeds of approximately $14.1 million after consummation of the PIPE financing. As of today’s filing, the Company has approximately $17.9 million in cash, cash equivalents and restricted cash.
  

About iBio, Inc.

iBio is an AI-driven innovator that develops next-generation biopharmaceuticals using computational biology and 3D-modeling of subdominant and conformational epitopes, prospectively enabling the discovery of new antibody treatments for hard to target cancers, and other diseases. iBio’s mission is to decrease drug failures, shorten drug development timelines, and open up new frontiers against the most promising targets. For more information, visit www.ibioinc.com.

Safe Harbor Statement

Any statements contained in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include statements regarding continuing to advance toward iBio’s goal of becoming a leading antibody discovery company with a differentiated machine-learning platform, discovering and developing novel antibodies to treat obesity and other cardiometabolic diseases, with a lead program focused on targeting the transforming growth factor beta (TGFb) superfamily for treating muscle wasting and obesity, the potential identification of new molecules that simultaneously expand and diversify the pipeline and being well-positioned to advance iBio’s internal pipeline priorities in immuno-oncology and cardiometabolics, and drive partnerships in new therapeutic areas,. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including iBio’s ability to advance its goal of becoming a leading antibody discovery company with a differentiated machine-learning platform in the third quarter, discovering and developing novel antibodies to treat obesity and other cardiometabolic diseases, the ability to identify new molecules that simultaneously expand and diversify the pipeline, the ability to advance iBio’s internal pipeline priorities in immuno-oncology and cardiometabolics, and drive partnerships in new therapeutic areas, the ability to finance when needed and the risk factors described in the Company’s Annual Report on Form 10-K for the year ended June 30, 2023, and the Company’s subsequent filings with the SEC, including subsequent periodic reports on Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statements contained in this press release speak only as of the date hereof and, except as required by federal securities laws, iBio, Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

Contacts:

iBio, Inc.
Investor Relations
ir@ibioinc.com

Susan Thomas
iBio, Inc.
Media Relations
susan.thomas@ibioinc.com

FAQ

What were iBio's financial results for fiscal Q3 2024?

iBio reported no revenue and a net loss from continuing operations of $2.6 million, or $0.71 per share, for fiscal Q3 2024.

How did iBio strengthen its cash position in fiscal Q3 2024?

iBio raised $15 million through PIPE financing and an additional $4.3 million from the exercise of previously issued warrants.

What are the details of iBio's collaboration with AstralBio?

iBio's collaboration with AstralBio focuses on developing antibodies targeting cardiometabolic diseases, including obesity. iBio will develop four targets and can license up to three before clinical trials.

What is the significance of the PD-1 asset sale to Otsuka Pharmaceutical for iBio?

iBio sold its early-stage PD-1 asset to Otsuka Pharmaceutical for $1 million upfront and up to $52.5 million in potential downstream payments.

What were iBio's R&D and G&A expenses for fiscal Q3 2024?

iBio's R&D expenses decreased by 66%, and G&A expenses by 23% in fiscal Q3 2024 compared to the same period in fiscal 2023.

Who was appointed to iBio's Board of Directors in fiscal Q3 2024?

Dr. Martin Brenner, iBio's CEO and Chief Scientific Officer, was appointed to the Board of Directors effective June 1, 2024.

What was iBio's cash position as of March 31, 2024?

iBio had approximately $6.4 million in cash, cash equivalents, and restricted cash as of March 31, 2024.

How much did iBio receive from the PIPE financing after deducting fees and expenses?

iBio received net proceeds of approximately $14.1 million from the PIPE financing.