May 17th, 2022 | 09:54 CEST
Alzheimer's share? Ask the CEO! Valneva, NervGen Pharma, Bayer
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"[...] Since inflammation is a cause of heart failure, and heart failure in turn is one of the leading causes of death in the Western world [...]" David Elsley, CEO, Cardiol Therapeutics
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
Valneva: Trees do not grow to the sky
The Corona pandemic is still ever-present. Those travelling abroad are still being checked: Vaccination status, body temperature, FFP2 mask. But around the world, people are tired of the pandemic. While masks are compulsory in official buildings, the situation is quite different in the countryside. People have lost their fear of the virus. That is probably one of the reasons why vaccination willingness is declining more and more. What was already bad news for latecomers, such as Valneva, compared to the top dogs from BioNTech and Moderna, is now becoming a disaster: Valneva has lost an advance purchase agreement for 60 million doses of the vaccine with the European Union. The EU has terminated the contract because approval has still not been received. Although the Company still has 30 days to make improvements and obtain approval, the signs are very bad.
Yesterday, the share price plummeted by more than 20% at times. The fantasy surrounding the once celebrated "saviour of the skeptics" dead vaccine seems to have evaporated entirely. While the uptrend is not yet over from a long-term perspective, it does not currently look like the stock is strongly supported. If strong hands are missing in the coming days, the value will continue to fall.
NervGen Pharma: Completely new approach to nerve damage
The share of NervGen Pharma has developed in a somewhat volatile sideways direction in recent years. Recently, there were no significant swings in either direction. It is surprising because last week, the Company received a commitment to increase the dose in its Phase 1 trial of the active substance NVG-291. Phase 1 trials are all about drug safety. If the authorities give the green light for higher doses, that is a good sign. But what does NervGen actually do? The Company is dedicated to developing innovative treatments that enable the nervous system to repair itself, addressing some of the most significant diseases of our time: multiple sclerosis, Alzheimer's, stroke and spinal cord injury are devastating diagnoses. NervGen uses a discovery made by renowned scientist Dr Jerry Silver in the 1990s and translates it into a product.
Simply put, when nerves are damaged, the body has the ability to heal them and restore their original function. However, due to scarring, this natural healing process ends after a time - patients remain restricted. Previous studies have shown that the active ingredient of NervGen could also have positive effects in humans on several levels: "The primary purpose of the scar is to protect the area from further damage. Unfortunately, the scar tissue contains a molecule that interacts with the nerves and ultimately halts natural healing. Our drug essentially modulates the activity of this molecule, allowing healing to occur naturally. One important way the nervous system heals itself is by increasing plasticity, i.e. growth of new nerve connections. Another process is called remyelination which is the rebuilding of the protective coating around the nerves, known as myelin. In studies of animals with stroke, we have even observed stem cells moving into the affected nerve areas, which also has the potential to contribute to healing," NervGen Executive Chairman Bill Radvak said in an interview.
Alzheimer's, MS, paraplegia - NervGen CEO answers your questions!
In the coming months, the Company plans to show that excellent results from animal experiments, in which mice with injured spinal cords were able to move their legs again, for example, can also be transferred to humans. It is important to note that even small results would be a scientific revolution - just restoring bladder function or minor improvements in MS, which also involves nerve injury, can ease the suffering of millions of people. Next Thursday, NervGen CEO Paul Brennan will present at the International Investment Forum (IIF) and then take questions from the audience. Attendance is free via Zoom, starting at 7:20 pm!
Bayer: As boring as a boat trip on the Rhine
Listening to the 30-minute keynote speech and asking a few questions afterwards could also be of interest to representatives of companies like Bayer. While the Company is currently scoring points with its seed business, pharmaceuticals still account for about 40% of total sales. Bayer offers an exciting mix of health care and food supply and should therefore be in demand in the current market environment. Recently, the stock has shown relative strength, but on a one-year horizon, it remains at a meager return of only 7.8%.
To invest in health, investors can go several ways. Stocks such as Bayer are not very dynamic but offer a dividend - currently, the yield is around 3.6%. Valneva has been rated highly so far. These days, moreover, it could be all or nothing. For NervGen, the market has priced in some risks. However, the active ingredient, which potentially helps with various diseases and has the makings of a revolution, could be worth speculating on. Investors have enough time for a deep dive in the current market environment. This can be done without digging through technical literature or studies - on Thursday, exciting companies will be presenting at the IIF throughout the day, including NervGen from 7:20 pm onwards.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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