Bavarian Nordic, NYXOAH, Rani Therapeutics - Biotechnology on the verge of a quantum leap

Rani Therapeutics with 700% upside potential

Looking at the stock chart, it is not immediately apparent that this company has developed a technology with blockbuster potential in the multi-billion-dollar biologics market. The price has lost around 77% since its all-time high in April this year, to currently USD 2.29.

However, Oppenheimer analysts see exceptional growth opportunities ahead. Analyst Andreas Argyrides estimates that the Company could gain significant access to the global biologics market, which could explode to USD 856 billion by 2034. He set the price target at USD 17, representing a price opportunity of over 700%.

Rani Therapeutics has developed the RaniPill, a revolutionary solution for administering biologics. These drugs, used to treat severe chronic diseases such as autoimmune disorders, could previously only be administered intravenously to avoid destruction by gastric acid. RaniPill now makes it possible to take the medication orally, as it passes through the stomach undamaged and only releases the drug in the small intestine. This could significantly improve treatment and make it more accessible.

The Company is working on several promising drug candidates. RT-102, which targets osteoporosis, and RT-111, for the treatment of psoriasis, have already shown success in early studies. RT-102 will enter Phase II trials in Europe by the end of the year, while RT-111 will continue to be tested at higher dosages. In addition, Rani is collaborating with the German company ProGen on RT-114, an anti-obesity drug that is expected to enter Phase I trials next year.

NYXOAH – An important piece of the puzzle

In order to strengthen its financial position with regard to the market launch of Genio® in the US, the medical technology company was able to add another piece to its success story with gross proceeds of USD 27 million from an At-the-Market-Offering. A total of 3 million shares were placed at a price of USD 9.
The Belgians are focusing on treating obstructive sleep apnea (OSA) and aim to revolutionize it with their Genio® technology. The innovative device stimulates the hypoglossal nerve, thus preventing the upper airways from blocking up during sleep. The CE-certified Genio® product has been on the market in Europe since the beginning of the decade and is already being used in several ENT clinics. The breakthrough, approval by the US Food and Drug Administration (FDA), is expected by the end of the year.
The basis for the FDA approval application abroad was the US study "DREAM", which was successfully completed in Spring. In this study, 115 patients were treated with the Genio® system for 12 months. All primary and secondary endpoints were met and a high level of efficacy, regardless of their sleeping position was demonstrated. Based on these results, the fourth module of the approval application was completed in the Summer and submitted to the FDA. Their approval is expected as early as end of 2024 and market launch as well as commercialization in the United States is planned for the first quarter of 2025.

Bavarian Nordic – Concerning development

The share price of Bavarian Nordic, a fully integrated biotechnology company focused on the development, manufacture, and marketing of vaccines, could also start to rise again after a strong rally and a subsequent correction. The reason for this is the spread of Mpox, also known as monkeypox, on the African continent. According to Bloomberg, the Zambian health authority confirmed the first case of Mpox on Thursday, while cases continue to increase in other African regions.

The Danish company is one of the leading producers of the Mpox vaccine, for which the children's charity Unicef has already placed a significant order. The World Health Organization (WHO) has announced that it has approved the Mpox vaccine BAVA.CO from Bavarian Nordic for young people aged 12 to 17 years, an age group considered particularly vulnerable to outbreaks of the disease.

The UN agency approved the use of the vaccine in September as the first vaccination against Mpox in adults, thereby facilitating access to the vaccine for severely affected African countries. This follows the WHO's latest decision after the EU approved the drug as a vaccine for adolescents in September.

The Danish biotech is also preparing to conduct a clinical trial to evaluate the vaccine's safety in children aged 2 to 12, potentially expanding its use.

Oppenheimer analysts are optimistic about Rani Therapeutics and see a price potential of over 700%. Bavarian Nordic is profiting from the spread of MPOX. NYXOAH has successfully completed an At-the-Market-Offering raising USD 27 million.