Close menu

October 13th, 2022 | 14:10 CEST

Attention, turnaround: Bayer, BioNTech, Defence Therapeutics, MorphoSys - These biotech stocks are way down!

  • Biotechnology
  • Cancer
Photo credits:

Even though more people are being diagnosed with cancer today, and the disease remains the leading cause of death, the number of people dying from cancer is trending downward. In recent years, respectively, survival rates have been steadily increasing. The relative proportion of survivors based on all cancer types in the US has increased from 50% to more than 67% over the past two decades, so today, two out of three patients with a serious disease are still alive after five years. In Europe, too, there has been an increase in 5-year survival rates for the most common cancer types. This is encouraging and draws attention to the oncology sector. Which biotech stocks are significant here and offer a good entry point?

time to read: 5 minutes | Author: André Will-Laudien

Table of contents:

    Dr. Moutih Rafei, Director and VP of research and development, Defence Therapeutics
    "[...] At the end of 2022 or the beginning of 2023, we plan to start a Phase I study around each of our activities against breast cancer and skin cancer. [...]" Dr. Moutih Rafei, Director and VP of research and development, Defence Therapeutics

    Full interview


    Bayer - A giant in oncology too

    Bayer has already been accepted as a supporter in the National Decade against Cancer in 2020. The aim of the initiative, which was launched by the German Federal Ministry of Education and Research (BMBF) together with the German Federal Ministry of Health (BMG) and other partners, is to prevent cancer wherever possible, improve the chances of cure through new therapies and increase the length and quality of life of those affected.

    Bayer is particularly committed to developing precision oncology and, as a supporter, would like to establish an active dialogue with relevant players from research, politics, industry and patient representatives and promote it on a sustainable basis. Cancer is still the second most common cause of death in Germany. Currently, approximately 500,000 people are diagnosed with cancer every year. Studies indicate that this figure will rise to around 600,000 by 2030 due to the expected ageing of society. The development of increasingly precise and personalized therapies is one of the latest advances in cancer treatment, which includes precision oncology. Bayer is committed to strengthening the importance of molecular testing in oncology so that tumor diseases in Germany can be diagnosed at an early stage and receive the most precise tumor therapy possible. The program is comprehensive and a mainstay of German oncology research. The business unit is very important for Bayer because it generates international attention.

    Although Bayer shares recovered from the glyphosate lawsuits in the US in the spring of this year, they recently fell back by a good 20% to below EUR 50. Nevertheless, the pharmaceutical giant is still in positive territory this year. Analysts are also optimistic again. The experts surveyed by S&P Global Intelligence see a median price target of EUR 78.8, representing a premium of just under 60% over 12 months. With a 2023 P/E ratio of 5.9 and a dividend yield of 5%, Bayer shares are rarely found at such a favorable price.

    Defence Therapeutics - Off to a good start with the treatment of lung cancer

    Since the original launch of the Cancer Moonshot in 2016, the US cancer community has made measurable progress toward three ambitious goals: accelerating the scientific discovery of cancer, fostering greater collaboration, and improving the sharing of cancer data. In early 2022, President Biden announced a relaunch of the Cancer Moonshot and listed additional goals: To cut the cancer death rate in half within 25 years and significantly improve the lives of people with cancer. The initiative is currently being revived in the US.

    The Canadian biotech specialist Defence Therapeutics (DTC) has developed its proprietary ACCUM™ platform, a patented technology that offers great hope in current cancer research. With Biden's "Cancer Moonshot" initiative, more research funding from governments can also be expected in the interest of patients. The Company is attracting attention again, as it has just launched a program to treat lung cancer. The new AccuTOX™ formulation, an ACCUM™ variant for intratumoral administration, is being used. The use of this compound in combination with various immune checkpoints leads to a significant cure rate. At the molecular level, AccuTOX™ inhibits several key cellular signaling pathways utilized by tumors, such as DNA replication, cell division, cell integrity and various modifications affecting the genome. This translates into limited cell repair, accumulation of misfolded proteins, and generation of free radicals that cause irreversible DNA damage. AccuTOX™ ensures the breakdown of the general cellular balance, consequently leading to the effective death of the diseased cells.

    The scope targets all lung cancers, the three most prominent being small cell bronchial carcinoma, lung carcinoid and non-small cell bronchial carcinoma. The global lung cancer therapeutics market was valued at USD 24.7 billion in 2021 and is expected to more than double to USD 54.5 billion by 2029, growing at a compound annual growth rate (CAGR) of 10.4% during the forecast period, according to research by Databridge Market Research. This represents an outstanding environment for innovative Defence Therapeutics. DTC shares have already been rising since early October.

    BioNTech and MorphoSys - What is the current status?

    At the 2022 Ludwig Erhard Summit, the two BioNTech CEOs were recognized for research on their Corona vaccine. Özlem Türeci and her husband Ugur Sahin also spoke about a novel cancer therapy that could be available in a few years. With Phase II trials already completed, the founders now appear to be on the verge of a breakthrough. The products are being tested on a larger number of patients, and the results so far are encouraging. The goal is to develop novel immunotherapies against cancer without severe side effects. Chemotherapy, for example, is considered quite effective but very aggressive. The mRNA method, which was already used for the Corona vaccine, again plays an important role in the approach. Recently, Mainz-based biotech company BioNTech reported a tentative success for an mRNA therapy against one of the deadliest tumor types, pancreatic cancer.

    At MorphoSys, it is all about the two cancer drugs, Monjuvi and Pelabrisib. In addition to the antibody Monjuvi, which is already a major revenue generator for MorphoSys, the drug Pelabresib, which MorphoSys secured with the USD 1.7 billion acquisition of US cancer specialist Constellation Pharma, is then expected to follow. "This is our next big catalyst," says CEO Kress optimistically. Just over two years ago, MorphoSys received approval for its first proprietary drug, Monjuvi, in the US and, most recently, for the EU. The drug is used to treat a malignant disease of the lymphatic system.

    Both shares are currently showing interesting chart formations. While the fall from the highs is between 75% and 90%, BioNTech has recovered 25% from the bottom due to a now low valuation (P/E 8.5). Even on weak NASDAQ days, the Mainz-based company has recently shown strength. Hedge funds are at work in the MorphoSys share, which repeatedly bring the value below the EUR 20 mark. A liberation strike should go at least to EUR 23.50 - here lies an important breakout line to the upside. Both shares are good for a strong turnaround when the environment improves.

    The stock market is currently showing its most volatile side. Growth stocks, in particular, are suffering from high interest rates and falling valuation parameters. This may continue for a while. Bayer and BioNTech are considered standard stocks, but MorphoSys and Defence Therapeutics are also good additions to a risk-conscious portfolio because of their interesting pipelines. The latter, with its promising ACCUM™ technology, is valued at only a low EUR 42 million.

    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
    For this reason, there is also a concrete conflict of interest.
    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author

    Related comments:

    Commented by Juliane Zielonka on September 29th, 2023 | 07:00 CEST

    Defence Therapeutics, Schott Pharma, Allianz Group: Focus on Innovation, Growth and Portfolio Optimization

    • Biotechnology
    • Pharma
    • Investments

    According to a recent study, biotech company Defence Therapeutics achieves twice the immune response of conventional mRNA therapies with its Accum® mRNA technology. That translates to fewer side effects and a more effective treatment. According to Precedence Research, the market size for mRNA therapeutics is projected to reach approximately USD 137.59 billion by 2032. It is expected to grow at a CAGR of 13.2% from 2023 to 2032. In order to inject these active ingredients, precision-fit medical vials are required, and Schott Pharma is ensuring this with their IPO launched on the German stock exchange this week, which could bring a valuation of around EUR 4 billion. The Allianz Group, on the other hand, is focusing on consolidation, selling its business in the Middle East and thus flushing around EUR 210 million cash into its coffers.


    Commented by Nico Popp on September 27th, 2023 | 07:10 CEST

    Rich as a Sheikh? Here is what's happening: Schott Pharma, BioNTech, Cardiol Therapeutics

    • Biotechnology
    • Pharma

    High-tech or add-on? When Schott Pharma's shares go public in Frankfurt on Thursday, investors are likely to have a clear opinion. The manufacturer of pharmaceutical packaging may be attracting significant interest precisely because its business model is clearly defined. But what sets Schott apart, and which companies in the pharmaceutical and biotech industry might also become interesting? We provide insights and deliver answers!


    Commented by Juliane Zielonka on September 22nd, 2023 | 06:50 CEST

    Cardiol Therapeutics, BioNTech, BYD - At top speed to new markets

    • Biotechnology
    • Pharma
    • Electromobility

    Cardiol Therapeutics is enjoying a remarkable development. The biotech company is now rolling out its ARCHER patient recruitment trial internationally at 35 participating centers. This accelerates research in the development of their therapy to combat myocarditis, a heart inflammation which has been associated with COVID-19 vaccination. For Cardiol Therapeutics, this represents an opportunity to get its therapy approved as an orphan drug. Approval is also at stake for BioNTech. With a multimillion-dollar funding boost, the Company is working on accelerated approval for a vaccine against a virus that caused quite a stir last year. The shortened development time is likely to impress investors. While business nations agree on fighting viruses, they disagree on commodities for the road. The EU would prefer to restrict BYD's successful sales on domestic roads - by imposing tariffs. BYD, meanwhile, is tapping into a completely different market.