Big news at BioNTech! Soon also at Nyxoah? What about Sartorius?

Nyxoah: Share attractive ahead of US market entry

Nyxoah is approaching a major milestone with its entry into the US market. The medtech company from Belgium is already growing in Europe and will massively increase its sales potential by tapping into the world's largest healthcare market. Nyxoah may still be unknown to many German investors, but for the more than 14 million people in this country with obstructive sleep apnea (OSA), their innovative technology could be a lifesaver.

OSA is a serious breathing disorder in which the affected patient's tongue falls backwards during sleep, blocking the upper airway. This can lead to pauses in breathing, which disrupts the balance of oxygen and carbon dioxide in the body and can cause depression, diabetes, heart attacks or strokes on the long run. Currently, obstructive sleep apnea is treated - if detected at all - with so-called CPAP therapy, in which air is pushed through the airways with the help of a mask, thereby keeping them free. It is, therefore, not surprising that approximately half of patients discontinue the therapy. Nyxoah wants to treat OSA without compromising sleep comfort.

The medical technology company has developed Genio, an innovative and comfortable high-tech product that is already available in Europe. The product consists of two components: A tiny neurostimulator in the chin that ensures regular forwards movements of the back of the tongue at night, preventing the tongue from blocking the airways as well as an external wearable that activates the stimulator. The course of therapy can be monitored using an app. Due to the ease of use and comfort of the Nyxoah technology, Genio achieves a therapy compliance rate of 85%.

The innovative company is well prepared for its market entry into the US. Nyxoah CEO Olivier Taelman recently stated: "The US is the largest healthcare market in the world and is therefore of strategic importance to us. We have submitted the final module of our PMA application to the FDA and are on track to receive approval in the US by the end of 2024. If approved, Genio could be available in the US as early as early 2025."

A sales team for the US has already been set up, and financing has also been secured. The Belgian company, listed on the Euronext and NASDAQ stock exchanges, has raised around EUR 86 million this year. Almost half of the fresh capital comes in the form of a loan from the European Investment Bank. This means the Company is fully financed until 2026 and can fully attack in the US in 2025. Nyxoah shares should also be able to benefit from this, and investors currently have the opportunity to get in early.

BioNTech: The coming days will be exciting

BioNTech shares have made an impressive comeback this week. The shares of Germany's largest biotech company gained more than 10% within a few days and are now trading above EUR 90 again. This is all the more astonishing given that JPMorgan confirmed its "Underweight" recommendation with a target price of USD 91 on Monday. However, investors were not deterred by this and bought the Mainz-based company's shares.

BioNTech's extensive oncology pipeline is coming back into focus. In light of the ESMO Congress, which begins on September 13, the Company has provided an initial update and announced that it will release numerous study data during the congress.

BioNTech co-founder Dr. Özlem Türeci commented: "We believe that the future of cancer treatment will be driven by the combination of modalities, including immunomodulators, targeted, and mRNA-based therapies. At this year's ESMO, we will present data from three clinical trials with BNT327/PM8002, one of the key building blocks for our combination treatment strategy. This bispecific antibody will be one element in several novel combination treatment approaches that may unlock new synergistic mechanisms of action."

Sartorius: Recovery already over?

The Sartorius share also rose by more than 10% to over EUR 260 at the beginning of the week - although this level could not be fully maintained. In contrast to BioNTech, there was a lack of company news. **At the beginning of September, RBC had expressed a cautious view on Sartorius, saying that the structural growth of the biotech sector offered long-term growth opportunities for the German diagnostics group with its French subsidiary Sartorius Stedim, but the analysts also referred to the group's recent forecast reduction. Therefore, RBC rates Sartorius as "Sector Perform" with a price target of EUR 295.

Overall, Sartorius saw a positive trend in the first half of 2024 in a challenging environment. While revenue declined slightly by 3.2% to EUR 1.68 billion in the first six months, it increased by 3.6% to EUR 680 million in the second quarter. Order intake in the first half of 2024 increased by 7.5% to EUR 1.56 billion.

Sartorius CEO Joachim Kreuzburg commented: "Sartorius met its targets for the first half of the year, achieving the anticipated slight revenue growth and robust profitability in the second quarter. As in the first three months, the picture in the second quarter remained exceptionally mixed. Significant positive drivers were parts of the consumables business and the work with customers involved in cell and gene therapies. At the same time, we are noticing that customer demand for other product groups has been markedly subdued for longer than expected. Market dynamics in China also remain subdued." Given the high volatility and limited predictability, Sartorius remains cautious in its forecast for the second half of the year. A noticeable increase in demand momentum is not expected until the final quarter. Sales revenue for 2024 as a whole is therefore expected to stagnate at the previous year's level.

The expected approval of Nyxoah in the US will likely lead to a share price boom. As their product is already being sold in Europe, it is a good idea for investors to get in early to avoid chasing the share price later on. For a sustained turnaround in the share price, BioNTech needs convincing study data. At Sartorius, shareholders accustomed to growth are waiting for the positive trend to continue in the second half of the year.