iBio Optimizes Transition to AI-Powered Biotech
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iBio Optimizes Transition to AI-Powered Biotech

Pharma Tech Outlook | Monday, November 07, 2022

iBio announces plans to sell its contract development and manufacturing organization as part of its adaptation into an antibody discovery and development company.

FREMONT, CA: "We currently possess valuable assets in both biomanufacturing and biotech. We believe focusing our efforts on drug discovery and development to be the path to the greatest value-creation for shareholders, especially given the recent addition of the RubrYc Therapeutics pipeline and tools to engineer precision-targeting antibodies. Concurrently, given the strong demand for biomanufacturing capacity, we are providing the opportunity for another organization to more fully utilize the advanced bioanalytical and bioprocess capacity resident in our large-scale cGMP biologics production facility located in the growing Southeast Texas Biocorridor. We are expecting to complete the CDMO divestiture in 2023 while we focus on advancing our lead preclinical program and our expanding pipeline and partnership opportunities," says Tom Isett, CEO of iBio. AI-driven innovator of precision antibody immunotherapies, iBio has intended to divest its contract development and manufacturing organization to achieve its conversion into an antibody discovery and development company. Proceeds and cost-savings from the sale of the CDMO facility and decreased operations will be invested in growing the Company's lead immuno-oncology assets towards the clinic. In the ongoing creation of the RubrYc Discovery Engine, the artificial intelligence platform used to develop the majority of iBios therapeutic candidates, to extend the Company's cash runway.

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iBio will focus its efforts on the continued development of its lead immuno-oncology assets, which include IBIO-101, an immunotherapy for the depletion of regulatory T cells, and two differentiated antibody candidates derived from its antibody discovery platform, EGFRvIII, and CCR8. In preclinical studies, each compound showed selectivity for its intended target and a high degree of cell-killing capabilities, with potentially reduced off-target effects.

A multinational life science transaction firm has been retained to lead the sale of the CDMO's assets to finance additional pipeline and platform development. This comprises the 130,000-square-foot cGMP facility, which is customizable for various large-scale bioproduction systems, and the FastPharming Expression System and GlycaneeringTM Technology exclusive to iBios. The Company anticipates it may be able to consummate a transaction in 2023, but there needs to be more assurance as to when or how much iBio can sell its CDMO assets.

In line with the divestment, iBio has begun a total workforce reduction of about 60 percent of the Company's existing employee levels, primarily focusing on the workforce at the cGMP facility in Bryan, Texas. Upon completion of the personnel decrease, most of the Company will function out of the newly opened Drug Discovery Center in San Diego, California, which was inaugurated in September of this year.

“While parting with members of our WeBio team will be incredibly difficult, we do so with the knowledge that demand for their talents in the Texas Biocorridor area is high,” comments Michael Jenkins, iBios VP, Operations. “On behalf of the CDMO site leadership team, we thank our colleagues who have invested so much in our Bryan/College Station facility and whose dedication to our mission has helped build the Company and developed iBios proprietary FastPharming Expression System and Glycaneering Technology.”

The transformation to an AI-Biotech-focused business will cut iBios' monthly burn rate by nearly half, or between $2.5 and $3 million per month. Assuming an asset sale at comparable levels to other comparable cGMP facilities, the Company expects those cost savings coupled with proceeds from asset sales could provide a financial runway into the first half of the calendar year 2024.

iBio will hunt for a new chief executive officer in light of its scheduled relocation. Mr. Isett is anticipated to stay as CEO of iBio throughout this transition. To preserve consistency, the Board of Directors named William D. (Chip) Clark to the position of Chairman.

"On behalf of the Board of Directors, we want to thank Tom for his ongoing service to iBio. Tom's experience will help us guide the Company through this strategic transformation," says Mr. Clark, Chairman of iBio. 

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