Bavarian Nordic, Saturn Oil + Gas, Palantir - Monkeypox vaccine, energy, and defense in focus

Monkeypox alert sends Bavarian Nordic shares up 17% - WHO warns of new virus variant in Africa

As soon as WHO President Tedros announced the next global threat from the monkeypox virus, the shares of Danish biotech company Bavarian Nordic skyrocketed by 17%. The outbreak of a mutated monkeypox variant in at least six African countries, with around 15,000 people infected and over 500 deaths in Congo alone this year, is drawing investors' attention to new vaccines.

Bavarian Nordic is a German-Danish company specializing in the development and production of vaccines against serious infectious diseases. The Company is a global market leader for smallpox and monkeypox vaccines and supplies governments to improve public health care. Good to know: Besides the usual suspects such as Blackrock, Vanguard, and Alliance Bernstein, the shareholders also include five pension funds from Denmark and the US. Bavarian Nordic's main products include:

• Jynneos®/Imvanex® against smallpox and monkeypox
• Rabipur® against rabies
• Encepur® against TBE
• Mvabea® against Ebola

The Company is headquartered in Hellerup, Denmark, and has production sites in Denmark and Switzerland, as well as research facilities in Germany and the US. With 1379 employees, Bavarian Nordic achieved a turnover of DKK 7.1 billion in 2023. The Company has announced that it will be able to provide 10 million doses of the monkeypox vaccine to African countries by the end of 2025, of which 300,000 doses will be available for immediate delivery.

Other companies in the sector have also benefited from the rise in the stock markets since the WHO announcement: Japanese medical technology supplier Precision System Science gained around 39%, while shares in Chinese virus test kit manufacturer Shanghai ZJ Bio-Tech rose by 8.4%.

The WHO had already declared a global health emergency due to monkeypox in May 2022 when a milder variant spread worldwide. Despite the downgrading of the alert level a year later, the number of cases in Africa continued to rise. The Bavarian Nordic share is trading at EUR 32.50.

Saturn Oil & Gas reports record figures: Production up 50%, revenue hits CAD 208.9 million

The Canadian energy company Saturn Oil & Gas presented impressive financial and operating results for the second quarter of 2024 on July 30, 2024. Since early August, a 22-minute webcast on the figures has been available to interested investors. Click here for the audio file. The Company has achieved record oil and gas production and profits. The successes are the result of a smart growth strategy and improved financial management.

The quarterly results focus on the completion of the strategically successful acquisition of oil assets in South Saskatchewan, Canada, for approximately CAD 534.8 million. This strategic acquisition has increased the Company's production by over 50%, with record production averaging 30,128 barrels of oil equivalent per day (boe/d).

Accordingly, revenue increased to CAD 208.9 million, while adjusted EBITDA reached CAD 106.0 million. Adjusted cash inflow increased to CAD 88.6 million.

"The changes made to Saturn's capital structure in the second quarter of 2024, coupled with a significant acquisition, will be a turning point in establishing the Company as a leading independent, growing energy producer in Western Canada," commented John Jeffrey, CEO of Saturn. "In June 2024, the Company increased its crude oil production base by more than 50% and reduced its interest rate on debt by approximately 40%, strengthening Saturn's sustainable ability to generate free cash flow per share at a dramatically reduced cost of capital."

Another significant step to date has been the refinancing of the Company. Saturn has replaced its existing debt with USD 650 million of senior secured notes, bearing an interest rate of 9.625% per annum and maturing in 2029. This move reduces the cost of debt, as mentioned by Jeffrey, by approximately 40%. For investors, this presents solid and ideal prospects for the company's future.

Microsoft and Palantir cooperate for AI solutions in the US defense sector

Microsoft and Palantir Technologies have announced a partnership to provide cloud, AI, and analytics solutions to the US defense and intelligence community. The goal is to integrate Microsoft's language models with Palantir's AI platforms in classified cloud environments. And all this to protect the US.

"The rules of the past no longer work," writes CEO Alexander C. Karp in his letter to shareholders. "Companies that previously only moved data back and forth between different systems are now being pushed into the background. Instead, the demand for AI-supported solutions that create real added value for companies is growing."

Palantir's AI platform (AIP) is at the heart of the collaboration. Palantir will implement its Foundry, Gotham, Apollo, and AIP products in Microsoft's Azure Government, Azure Government Secret, and Top Secret Clouds. Palantir will also use the Azure OpenAI service in Microsoft's secret and top-secret environments.

The new collaboration leverages cloud technology and AI-driven language systems to improve tasks in defense, such as logistics, contracting, and action planning. These AI solutions are designed to operate safely and effectively, aiming to accelerate operations and reduce errors.

The news was well received on Wall Street. Wedbush analyst Dan Ives describes the partnership as potentially "groundbreaking", particularly in the government sector. He expects a significant acceleration of AI adoption in the Department of Defense and beyond over the next 12 to 18 months. Ives reiterated his "Outperform" rating and USD 38 price target on Palantir. In the second quarter, Palantir reported total revenue growth of 27% year-on-year, with US business customer revenue up 55%. Palantir shares are currently trading at EUR 28.24.

Bavarian Nordic is benefiting from the WHO's renewed warning of a monkeypox variant in Africa. As the leading manufacturer of vaccines in this area, the Company's share price has risen by 17%. The Company will provide 10 million vaccine doses for African countries by 2025. Saturn Oil & Gas shows pleasing growth in the second quarter of 2024, driven by strategic acquisitions and efficient financial management. The 50% increase in production and the rise in revenue to CAD 208.9 million are just two examples of the Company's ongoing expansion strategy. Palantir is further expanding its leading role in the AI market through a partnership with Microsoft in the US defense sector. With revenue growth of 27% in the second quarter and a positive analyst rating, Palantir can continue to grow in the expanding market for AI-based defense technologies. Three different sectors, three high-yield investment opportunities.