iBio(IBIO) - 2025 Q2 - Quarterly Report

Company Overview - iBio, Inc. is a preclinical stage biotechnology company focused on developing precision antibodies using AI and machine learning technologies[243]. - The company has developed EngageTx™ technology for targeting bi-specific molecules, enhancing preclinical safety assessments[244]. - iBio's ShieldTx™ technology allows antibodies to remain inactive until they reach diseased tissue, potentially improving efficacy and safety[245]. - The proprietary StableHu technology has been shown to reduce lead optimization times by utilizing single-shot multi-dimensional optimization techniques[246]. Collaborations and Partnerships - iBio entered into an exclusive agreement with AstralBio for the development of IBIO-600, an antibody targeting myostatin, and initiated a bispecific antibody program for obesity and cardiometabolic disorders[251]. - The collaboration with AstralBio includes the option to license three additional obesity and cardiometabolic targets, enhancing the preclinical pipeline[269]. - The company aims to form strategic partnerships to streamline drug discovery processes and reduce costs for pharmaceutical and biotechnology companies[251]. - The company is exploring partnerships in diverse therapeutic areas, including CNS, immunology, and vaccines, to license its AI technology stack[251]. - The company has initiated collaborations to explore future opportunities using its AI Drug Discovery Platform[275]. Drug Development Programs - The company initiated a program to develop IBIO-600, a long-acting anti-myostatin antibody, with preliminary data from a preclinical study in obese mice showing dose-dependent prevention of lean mass loss when combined with a GLP-1 receptor agonist[279]. - The bispecific antibody program targeting myostatin/activin A is in late discovery, with early in vitro findings indicating stronger differentiation of progenitor cells into mature muscle cells compared to single-target antibodies[283]. - The company has advanced IBIO-101, a second-generation anti-CD25 mAb, to the IND-enabling phase, demonstrating a 43% reduction in tumor growth in preclinical studies compared to untreated animals[291][301]. - The lead TROP-2 x CD3 bispecific antibody showed a significant 36% reduction in tumor size within 14 days after a single dose in a humanized mouse model[295]. - The anti-CCR8 antibody demonstrated a 22% reduction in tumor size in preclinical studies for colon cancer, highlighting its potential as a targeted therapy[306]. - The company is leveraging its AI Drug Discovery Platform to identify new therapeutic candidates, including antibodies targeting Activin E for cardiometabolic disorders[285]. - The company is focusing on developing molecules for obesity treatment that can be used in combination with or as alternatives to incretin drugs, prioritizing targets with strong genetic validation[276]. Financial Performance - Revenue for the three months ended December 31, 2024, was 0.2 million, compared to no revenue for the same period in 2023[315]. - Research and Development (R&D) expenses for the three months ended December 31, 2024, were 1.9 million, an increase of approximately $0.4 million from$1.5 million in 2023[316]. - General and Administrative (G&A) expenses for the three months ended December 31, 2024, were approximately $2.7 million, a decrease of$0.3 million from $3.0 million in 2023[317]. - Total operating expenses for the three months ended December 31, 2024, were approximately$4.6 million, compared to approximately $4.5 million in the same period of fiscal year 2023[318]. - Net loss from continuing operations for the three months ended December 31, 2024, was ($4.4) million, or ($0.48) per share, compared to a net loss of approximately ($4.5) million, or ($2.42) per share, in 2023[320]. - For the six months ended December 31, 2024, net cash used in operating activities was approximately ($7.6) million, compared to ($10.0) million for the same period in 2023[327]. - The accumulated deficit as of December 31, 2024, was approximately ($322.2) million, an increase from approximately ($313.8) million as of December 31, 2023[330]. - The company plans to fund future operations through cash on hand, proceeds from commercialization, and potential asset sales or collaborations, but there is no assurance of success[333]. - The company recognized a loss from discontinued operations of approximately ($3.7) million for the three months ended December 31, 2023, primarily due to an impairment of fixed assets[319]. Market and Risk Factors - The company faces a highly competitive environment with rising interest rates and liquidity challenges, potentially requiring adjustments to cash flow projections and valuation assumptions[343]. - Critical accounting estimates remain consistent with the previous annual report, with ongoing evaluations that could lead to changes in consolidated financial statements[344]. - The company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company[345]. - No triggering events were identified in the first half of fiscal 2025, with ongoing monitoring of IP value as part of annual accounting policy[342].