May 14th, 2024 | 07:30 CEST
Bayer, Defence Therapeutics, Novavax - Major events
The biotechnology sector is still on the move and is currently characterized by a high degree of volatility. For instance, BioNTech, a former star during the pandemic, reported a net loss of EUR 315 million in the first quarter. The Mainz-based biotech now wants to focus more on the development of its cancer drugs due to the slump in demand for COVID-19 vaccines. However, for years, innovative, undiscovered companies have existed in this billion-dollar market that could, with their technologies, become the new high-flyers in the biotech industry.
time to read: 3 minutes | Author: Stefan Feulner
ISIN: BAYER AG NA O.N. | DE000BAY0017 , DEFENCE THERAPEUTICS INC | CA24463V1013 , NOVAVAX INC. DL-_01 | US6700024010
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Author
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.
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Novavax - Share price doubles out of nowhere
Amid the COVID-19 pandemic, the US-based pharmaceutical company specializing in vaccine development was on par with vaccine producers like BioNTech or Moderna. However, after peaking at USD 331 in February 2021, the Novavax vaccine experienced a sharp decline following several postponements. Last Thursday, the share price fell by over 98% to USD 4.50.
The Company from Gaithersburg, Maryland, made an impressive comeback with a bang and a share price increase of over 100%. A license agreement was signed with the French pharmaceutical giant Sanofi to market a combined COVID-19 and flu vaccine. Marketing is set to begin as early as next year.
The license agreement allows Novavax to withdraw the warning issued in February 2023 regarding the Company's viability. One aspect of the agreement will enable Sanofi to use the COVID-19 vaccine technology, including the Matrix-M adjuvant, for the development of new vaccine products. Sanofi will make an upfront payment of USD 500 million to Novavax and additionally pay up to USD 700 million based on the achievement of certain development, regulatory, and launch milestones.
In addition, Sanofi will acquire a stake of less than 5% in Novavax as part of this agreement. This total amount significantly exceeds Novavax's current market capitalization of USD 627 million.
Defense Therapeutics - New milestone
The Canadian biotech company Defence Therapeutics, which is researching the development of next-generation vaccines and ADC products based on its scalable and patent-protected platform, recorded a daily increase of 45% from CAD 1.20 to CAD 1.74 in the past trading week amid conspicuously high volumes. Since then, the Company's share price, valued at CAD 59.65 million, has been consolidating in a textbook fashion, which could offer another short-term entry opportunity.
Defence Therapeutics, whose platform is based on the ACCUM™ technology, which makes it possible to transport vaccine antigens or antibody-drug conjugates (ADCs) precisely to the diseased cells, has been shining with a consistently positive news flow for months. Recently, a successfully completed preclinical test to combat pancreatic cancer was published.
The vaccine ARM-002™, based on AccuTOX®, an optimization of the ACCUM™ molecule developed by Defence Therapeutics and the associated platform technology, showed exceptionally good results, especially in combination with the anti-PD-1 immune checkpoint inhibitor. According to the Company, these represent a significant milestone and an occasion to specifically target pancreatic cancer in the Phase I study with the ARM-002™ vaccine.
The pancreatic cancer market is forecast to exceed USD 36 billion by the end of 2036, representing an average annual growth of 18% during the forecast period from 2024 to 2036. In 2023, the market size was over USD 6 billion. If further positive results from Defence Therapeutics follow, the share is likely to face a revaluation.
Bayer - It will be exciting
Will the problem child of recent years become the stock market star of 2024? There are increasing signs of a turnaround and the chart picture is improving day by day. The next hurdle Bayer shares overcame was the striking horizontal resistance at EUR 29.35. The fresh buy signal should push the share price into the EUR 36.10 range. The next step will be to close the price gap at EUR 40.66, which was opened in the middle of last November.
The necessary impetus for a successful interim rally could come as early as today when the pharmaceutical and agricultural giant presents its figures for the first quarter. Analysts are still forecasting a negative trend in sales and earnings, which could trigger a rally in the event of positive surprises.
The company's management has also already pointed to weaker first months. A "restrained development" is expected, particularly in the Consumer Health and Crop Service segments. Looking at the statements made by Group CEO Bill Anderson, Bayer still expects to achieve its targets for the year as a whole. One of the components is likely to continue to be the progress of the legal disputes regarding glyphosate.
Bayer broke through a significant technical resistance level. Defense Therapeutics announced a milestone in the fight against pancreatic cancer. The cooperation with Sanofi pulled the Novovax share out of its downward spiral.
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.
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