iBio‘s (NYSEMKT:IBIO) shares are trending, and IBIO stock is up 125% today after the firm used two of the market’s favorite buzzwords — artificial intelligence (AI) and obesity drugs — in a press release that unveiled a new initiative. Specifically, the firm announced that its AI drug discovery platform would be used to develop obesity treatments.
iBio and AstralBio’s Novel Partnership
iBio is partnering with AstralBio to develop “novel antibodies.” Under the deal, AstralBio has received an exclusive license to use iBio’s “AI-powered technology to identify and engineer four” drug candidates. The latter antibodies may eventually become treatments for cardiometabolic diseases, including obesity, iBio reported.
iBio will have the exclusive option to license three of the drug candidates from AstralBio. Under the agreement, iBio will also have the right to commercialize those three antibodies.
Further, the two companies have decided that the antibodies will be based on “the transforming growth factor beta (TGFb) superfamily.” TGFb are proteins that affect “cell proliferation, differentiation and growth.” They can also affect another protein called interferon gamma, which impacts growth.
iBio and AstralBio hope to develop drugs that will influence the TFGb proteins in order to help patients suffering from obesity and muscle wasting.
“We are confident our AI-enabled technology is exceptionally well positioned to develop antibodies against challenging targets in the cardiometabolic space,” iBio CEO Martin Brenner said in a statement.
IBIO Stock: Still a Pre-Revenue Play
Yesterday, iBio disclosed that it had raised about $15 million through a private placement. iBio intends to use the funds for general corporate purposes, including research and partnerships such as its deal with AstralBio.
During its fiscal year that ended in June, IBIO generated no revenue, while its net loss came in at $65 million.
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On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
