iBio, Inc.

For fiscal year ended June 30, 2022, revenue was approximately $2.4 million, essentially flat year over year. R&D expense increased by approximately $7.7 million and G&A expense increased by approximately $12.1 million versus fiscal 2021. Consolidated net loss was approximately $50.3 million, an increase of $27.1 million from 2021, driven largely by higher operating spend and the absence of $10.2 million in Fraunhofer USA settlement income recognized in fiscal 2021; this was partly offset by $1.8 million in Fraunhofer USA licensed revenue in fiscal 2022. Cash, cash equivalents and investments in debt securities were approximately $39.5 million as of June 30, 2022. Management said it expects to update cash-runway plans and believes it is likely to implement one or more options that could extend runway for 12 months or more from today, but gave no assurance. For IBIO-101, the company said the IND filing is expected in the first half of calendar 2024. For IBIO-202, management said it will not proceed with the planned IND submission this year.

Tom Isett’s message was that iBio is intentionally shifting into a drug-discovery and immuno-oncology company, with RubrYc giving it an end-to-end AI discovery capability and a broader pipeline. He emphasized that the company gained real-world confidence in the platform through a year of collaboration, especially via Target 6, and that four RubrYc computational biologists joining iBio adds strategic value. His tone was optimistic about the platform and pipeline, but guarded on financing, repeatedly stressing the need to extend runway and saying there is no guarantee the company can do so.

Rob Lutz highlighted preliminary unaudited fiscal 2022 results: revenue of approximately $2.4 million, net loss of approximately $50.3 million, and cash, cash equivalents and investments in debt securities of approximately $39.5 million at June 30, 2022. He said R&D and G&A both rose meaningfully year over year, reflecting continued investment in the platform, employees and infrastructure. He also repeated that the company and auditors concluded there is substantial doubt about iBio’s ability to continue as a going concern, and said iBio will need additional capital to execute its longer-term plan. He noted the board approved a one-for-25 reverse stock split effective October 7, 2022, with trading on a post-split basis beginning October 10, 2022.

Analysts focused on why iBio expanded from a prior RubrYc collaboration to buying substantially all of RubrYc’s assets, and management said the year of hands-on work with the platform and Target 6’s progress validated the technology. Questions also centered on how fast IBIO-101 could reach IND, whether capital constraints were slowing it, and how soon the newly acquired assets might reach in vivo proof-of-concept; management said IBIO-101 is being pursued as fast as possible but the clinical strategy is being evaluated, while the newer assets are early and may be candidates for partnerships. The most pointed shareholder question challenged transparency, compensation, and the lack of progress on prior programs; Tom Isett defended the company’s communication and said the IBIO-202 decision was a tough but necessary technical and business call after the FDA challenge study requirement and disappointing efficacy data.