Close menu




March 16th, 2021 | 07:16 CET

Bayer, Cardiol Therapeutics, Xiaomi - Biotech: Blockbuster potential here!

  • Biotechnology
Photo credits: pixabay.com

Germany is leading the race for a vaccine against the coronavirus With two companies - BioNTech and CureVac. The biotech industry is currently experiencing a growth spurt that will continue over the next few years, if not decades. In Germany alone, EUR 7 billion is invested annually in research and development. The goal is to develop new therapies to prevent, alleviate and cure diseases. The opportunity for disproportionate share price gains by investing in a company at an early stage of research is gigantic.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: DE000BAY0017 , CA14161Y2006 , KYG9830T1067

Table of contents:


    Rocky road ahead

    Developing new drugs is a lengthy process. Out of 5,000 to 10,000 hopefuls tested in pharmaceutical companies' research laboratories, on average, only one ends up as a finished drug in the pharmacy. Between them, there is an average period of 13.5 years. In between, there are 3 phases: In the preclinical study, the drug candidate is tested on cell cultures and animals, while in phase 2 clinical trial, the drug is tested on humans for the first time. In phase 3, doctors test the drug on thousands of patients to see whether efficacy and safety can be confirmed in many different patients. Interactions with other drugs will also be studied. Once a new drug has passed all the prescribed studies and tests, the biotech company finally applies for drug approval from the relevant authorities.

    Potential in the boom market

    The Company Cardiol Therapeutics has already come a long way. The Canadians are focused on manufacturing pharmaceutical cannabidiol (CBD) products and developing innovative therapies for heart disease. These include acute myocarditis and other causes of heart failure. The focus is on the product CardiolRx, which is already in Phase 2/3 clinical trials. CardiolRx is a pharmaceutically manufactured oral cannabidiol formulation. The objective is to evaluate the compound's efficacy and safety as a cardio-protective therapy to reduce mortality and serious heart disease in COVID-19 patients with pre-existing cardiovascular disease and risk and assess the compound's impact on key markers of inflammatory heart disease.

    Comparison with USA lags

    The current stock market valuation of Cardiol Therapeutics, which has other CBD drugs in development in addition to the blockbuster candidate CardiolRx, currently has a market value of just under EUR 80 million. If one compares US biotechs in a comparable development phase, there should still be considerable potential here. To present itself to a broader circle of investors, the management has applied for a Nasdaq listing. Another positive fact is that the Company receives CAD 10 million from the exercise of warrants and stock options to be used for further development steps.

    Focus on growth

    With the glyphosate settlement behind it, one must look ahead. In the coming years, the pharmaceutical and agricultural group Bayer intends to accelerate its growth and improve its profitability. According to the Company's headquarters, this will be achieved through new innovations. However, the all-important question is how the legal dispute in the Monsanto takeover course will end. Here, Bayer CEO Werner Baumann expects a possible agreement at the end of June at the earliest. Despite the vague statements concerning the expected settlement, analysts remain positive. The US analyst firm Bernstein Research maintains a "buy" rating on Bayer shares and assigns a price target of EUR 69.00. NordLB raised its price target from EUR 61.00 to EUR 64.00. The experts see the ongoing transformation process, the positioning of the three divisions and the initiated efficiency program as positive.

    The tide is turning

    A points victory for Chinese technology Group Xiaomi. The Department of Defense had blacklisted Xiaomi shortly before President Donald Trump's term ended amid allegations of ties to the Chinese military. Xiaomi denies the allegations. A judge suspended the punitive measures, and the court said the reasons were based on inadequate justification by the US Department of Defense. Important for Xiaomi is the fact that US investors are now allowed to reinvest in the papers of the current number three smartphone manufacturer in the world. In addition, the Company announced a new USD 1.29 billion share buyback program last week. Management believes that a share buyback under current conditions demonstrates the Company's confidence in its business prospects and creates value for shareholders. It's good timing. After all, Xiaomi has lost a whopping 40% since January.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

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

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by Nico Popp on November 30th, 2022 | 13:33 CET

    Advances in the fight against cancer: Arcus Biosciences, Gilead Sciences, Defence Therapeutics, BioNTech

    • Biotechnology
    • Covid19
    • Cancer

    Research studies from 2020 show that 72% of Germans fear cancer. However, very few people want to admit to these fears. But precisely because the subject is a big taboo, it is worth looking at the latest achievements in research. Many companies worldwide have long been fighting the epidemic - and making astonishing progress. Just recently, a US biotech announced encouraging study results. Other companies have yet to launch promising studies. We provide an overview and outline opportunities from an investor's perspective.

    Read

    Commented by Fabian Lorenz on November 30th, 2022 | 13:31 CET

    Biotech stocks in focus: Morphosys, Evotec, Bayer, BioNxt Solutions

    • Biotechnology
    • Cancer
    • Investments

    Biotech stocks have struggled in 2022. In Germany, BioNTech has overtaken the previous heavyweights Morphosys and Evotec in record time. Morphosys shocked investors with data on its Alzheimer's hope. Analysts lowered their thumbs, and short-sellers discovered the stock for themselves. Evotec has been quiet this year. Analysts think the valuation is attractive, but meeting earnings guidance in the current year is not a given. BioNxt shares have jumped recently, and if the positive newsflow continues into 2023, a re-rating is possible. At Bayer, the pharmaceuticals division is also developing positively. Conclusion: investors should position themselves for the biotech year 2023.

    Read

    Commented by Fabian Lorenz on November 24th, 2022 | 12:40 CET

    New year, rising prices? BASF, BioNTech and Manuka Resources - Shares in check

    • Mining
    • Commodities
    • Biotechnology
    • chemicals

    As the stock market year 2022 draws to a close, we look ahead to 2023. New year, rising prices? That is what many stock market players are hoping for. The chances are that we will see rising indices again with the end of interest rate hikes in the coming year. Today, we look at three companies likely to attract attention in 2023. At BioNTech, the research pipeline is full to bursting, and there are numerous study results to come. BASF is attractive due to its low valuation and high dividend yield. However, analysts warn of a write-off risk. Manuka Ressources convinces with a profitable core business, and an exciting project in the field of critical raw materials could lead to a revaluation.

    Read