Close menu




April 19th, 2022 | 12:10 CEST

Bayer, Defence Therapeutics, Formycon - Biotech stocks facing transformation

  • Biotechnology
Photo credits: pixabay.com

The pharmaceutical industry proved to be a key industry in the Corona pandemic, developing tests, vaccines and drugs at record speed and making them available in large quantities. In the process, biotechnology emerged as the innovative engine. The development of new compounds is particularly important for the pharmaceutical industry, as patent protection for many blockbuster drugs will expire in the future or has already expired. For this reason, the pharmaceutical industry is now entering biotechs much more frequently in the early development phases of a new drug. As a result, early-stage development companies already offer opportunities for multiplication.

time to read: 4 minutes | Author: Stefan Feulner
ISIN: DEFENCE THERAPEUTICS INC | CA24463V1013 , FORMYCON AG | DE000A1EWVY8 , BAYER AG NA O.N. | DE000BAY0017

Table of contents:


    Defence Therapeutics - Breakthrough platform technology

    The Canadian biotechnology company Defence Therapeutics is also focusing on the development of next-generation vaccines and ADC products using its proprietary and patented Accum technology. This technology has the decisive advantage of ensuring the precise transport of vaccine antigens or ADCs in the intact form to the target cells, which significantly improves efficiency and thus efficacy against diseases such as cancer or infectious diseases.

    In this context, the activities of Defence Therapeutics can be divided into two areas, as Dr. Moutih Rafei, Director and VP for Research and Development, explained in a detailed interview. One is the immuno-oncology segment, and one is the activities against infectious diseases. In the first area, the Canadians are working on vaccines against breast and skin cancer and antibody-drug conjugates (ADC). The latter primarily addresses safety and efficacy and offers significant advantages over other forms of therapy. In infectious diseases, research is being conducted on vaccines against COVID-19 and the human papillomavirus (HPV). A phase 1 study against breast and skin cancer is expected to begin no later than early 2023.

    A US patent has now been announced for the breakthrough vaccine platform technology. Thus, the US Patent and Trademark Office issued a patent number covering the Company's breakthrough vaccine platform technology for the treatment/prevention of a broad range of cancers and infectious diseases, including SARS-CoV-2. For Sebastien Plouffe, CEO of Defence Therapeutics, "this patent not only represents another important milestone in protecting Accum's commercial potential but, together with the new patent families currently in preparation, demonstrates Defence's strong overall commitment to protecting the innovation and commercial potential of its entire product portfolio, as well as its ambition to be a leader in vaccine development." The market value of this broad-based biotech Company with the innovative Accum technology, which has already proven proof of concept, is EUR 111.85 million. If the positive development continues, Defence Therapeutics still has considerable potential.

    Formycon - Moving up to the next level

    The independent analyst firm Alster Research confirmed its "buy" rating for the leading developer of high-quality biosimilars but raised its price target from EUR 75.00 to EUR 84.00. The analysts believe that Formycon has the potential to rise to the next level. The analysts see the transformative agreement with ATHOS, the family office of Hexal founders Andreas and Thomas Strüngmann, as the reason for the upgrade, which will bring about a profound change at Formycon.

    The agreement details are as follows: As part of the transaction, Formycon will acquire the development unit Bioeq GmbH. Formycon thus gains experienced experts in clinical development, regulatory affairs, business development, commercial affairs, IP and project management. Formycon acquires full project and commercialization rights to FYB202, a biosimilar candidate for Stelara. Following out-licensing in 2017, Formycon holds a 24.9% stake in the project, with 75.1% held by Aristo Pharma GmbH, a wholly-owned subsidiary of ATHOS.

    Global licensing and commercialization rights to FYB201, a biosimilar candidate for Lucentis, have been held by Bioeq AG, a 50:50 joint venture of ATHOS and Polpharma SA, since 2016. As part of the transaction, Formycon will acquire ATHOS' 50% stake in Bioeq AG. FYB201 is marketed in the US by Coherus BioSciences under the brand name Cimerli and is still under FDA review, which is expected to last until August 2, 2022. If approved, Coherus is preparing to launch Cimerli in the second half of 2022 and drive adoption among retinal specialists.

    The value of the consideration to be paid by Formycon in the transaction includes the issuance of 4 million new shares to ATHOS and an earn-out component, together valued at approximately EUR 650 million. Upon completion of the transaction, ATHOS will be Formycon's largest shareholder, with an indirect stake of about 26.6% of the share capital. In addition, the investor consortium, consisting of ATHOS and anchor shareholder Active Ownership, will provide a callable loan facility of up to EUR 50 million, strengthening Formycon's flexibility for short-term pipeline investments.

    Bayer - The air is getting thinner

    In recent months, the glyphosate legal disputes have been like black clouds over the Leverkusen share chart. Since the beginning of the year, the brakes have now been released. The share price, which was able to defend the critical support area around EUR 45 at the end of December, shot up by almost 35% despite inflation fears and the Ukraine crisis, making it one of the top performers on the German benchmark index this year.

    Currently, however, the air is getting thinner, so the Bayer chart could stop in front of prominent resistance areas at EUR 68.10 as well as around EUR 69.70 and start a broader consolidation. Thus, the first target is closing the price gap at EUR 63.17. The indicators, firmly in the oversold area, also speak for a setback.


    Biotechnology is becoming increasingly important, as was evident in the Corona pandemic. Defence Therapeutics has potential through its patented Accum technology. Formycon is currently undergoing a transformation. In contrast, a correction is becoming more likely for Bayer.


    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.

    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 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 news.financial. 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

    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 February 2nd, 2023 | 18:04 CET

    Bulging pipeline at BioNTech, Cardiol Therapeutics - what is the problem at Aurora Cannabis?

    • Biotechnology
    • Cannabis
    • Cancer

    He who heals is right. It is not quite that simple with active ingredients that are about to be approved. Drugs and vaccines must undergo extensive studies and, last but not least, have to prevail against the existing competition. We look at the pipelines of three hot stocks and venture a forecast: Where is the greatest potential for investors?

    Read

    Commented by Stefan Feulner on February 1st, 2023 | 20:29 CET

    BioNTech, Defence Therapeutics, PAION - All dams broken

    • Biotechnology

    High price fluctuations due to approvals or successful test results are more the norm than the rule in the biotechnology sector. It is common for smaller stocks, in particular, to multiply within a few days. For example, the shares of Ambrx Biopharma increased by a whopping 1,000% within just one day, while the German biotech hopeful PAION doubled in price within a week. The next candidates for above-average performances are already waiting in the wings.

    Read

    Commented by André Will-Laudien on January 30th, 2023 | 09:13 CET

    Mega biotech rally 2023! Defence Therapeutics, Bayer, BioNTech, Morphosys - Where to put the money?

    • Biotechnology
    • Cancer
    • Covid19
    • Investments

    Who would have thought it? Since the beginning of the year, the stock markets have been jubilant despite difficult predictions about the economic trend in 2023. High inflation and rising interest rates are not a good breeding ground for the popular biotech stocks because they have to constantly refinance their research expenses. As the risk fee is readjusted as costs rise, investors demand higher premiums for providing money. However, some biotech stocks have taken off since the beginning of the year despite adverse conditions. What is their secret?

    Read