Close menu




October 26th, 2022 | 11:28 CEST

Biogen, Cardiol Therapeutics, Evotec - Brilliant results

  • Biotechnology
Photo credits: pixabay.com

The reporting season for the third quarter is in full swing and is creating a thoroughly positive mood. For example, the software group SAP posted surprisingly strong growth in its cloud business in the third quarter, and its operating result was better than forecast. Positive signals are also coming from the biotech sector, which has been badly battered in recent months. After the horrendous share price losses, this sector, in particular, offers attractive long-term entry levels.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: CARDIOL THERAPEUTICS | CA14161Y2006 , BIOGEN INC. DL -_0005 | US09062X1037 , EVOTEC SE INH O.N. | DE0005664809

Table of contents:


    David Elsley, CEO, Cardiol Therapeutics Inc.
    "[...] As a company dedicated to developing treatments for rare heart diseases, we see this as an opportune moment to contribute to the fight against heart disease and make meaningful strides in improving heart health worldwide. [...]" David Elsley, CEO, Cardiol Therapeutics Inc.

    Full interview

     

    Biogen - Sales and earnings exceeded

    The heavyweight Biogen provided the start for the biotech sector. The Company from Cambridge in the US state of Massachusetts beat both the profit and sales expectations of analysts in the third quarter. Earnings per share came in at USD 4.77. The analyst consensus was for a per-share gain of USD 4.14. The USD 39.44 billion publicly traded biotechnology company also beat analysts' consensus on revenue, coming in at USD 2.51 billion.

    The better-than-expected third-quarter figures also led to an upward adjustment of the annual forecast. The US company now expects earnings per share between USD 16.50 and USD 17.15. The previous estimate was between USD 15.25 and USD 16.75 per share. Full-year revenue is expected from USD 10.0 billion to USD 10.15 billion, up from the previous forecast of USD 9.9 billion to USD 10.1 billion. The Company said the increase in full-year revenue EPS guidance was primarily due to better-than-expected revenue performance and continued cost management.

    From a chart-technical point of view, there is no reason to buy the stock at the current level. Due to the publication of positive data from a Phase III study of the Alzheimer's drug candidate Lecanemab at the end of September, the chart formed a price gap with an increase of over 40%. This is likely to be closed at around USD 201 in the event of a slide below the USD 251 mark. On the other hand, if the resistance at USD 283.44 is overcome, the chart picture would brighten significantly.

    Cardiol - Financed through to 2026

    The panic selling in the biotech sector in recent months led to clearly exaggerated markdowns for individual stocks. In the case of Nasdaq-listed life sciences company Cardiol Therapeutics, which has a market capitalization of CAD 49.50 million, the undervaluation is obvious, as the Canadians are currently trading below their cash position of over CAD 50 million. The suspension of the LANCER study due to lack of eligible patients to support recruitment, which was conducted to evaluate the cardioprotective properties of blockbuster candidate CardiolRx in people hospitalized with COVID-19, has secured the Company's funding for an additional year until 2026.

    CardiolRX, a lead product candidate and a pharmaceutically manufactured oral cannabidiol formulation, is now being used to increase focus on advancing the Phase II ARCHER study, which has been investigated to evaluate CardiolRx in acute myocarditis, an inflammation of the heart muscle. The study, developed with renowned international experts in heart failure and myocarditis, has already received regulatory approval in several countries and is expected to enrol 100 patients in major cardiac centers in North America, Europe, Latin America and Israel. Initial study results are expected later this year.

    In addition, a Phase II pilot study is underway in recurrent pericarditis, an inflammation of the pericardium. The study is expected to enrol 25 patients at major clinical centers specializing in pericarditis in the United States, with initial results expected to be published in 2023.

    The analysts at Cantor Fitzgerald see the discontinuation of the LANCER study as positive since the focus should be on the studies against myocarditis and recurrent pericarditis. In addition, the analysts welcomed the extension of the financing scope into 2026. The investment rating was confirmed as "overweight", and the price target remains USD 5. At the current price of USD 0.61, this means an upside potential of over 700%.

    Evotec - Profitable partnership

    With a price gain of almost 6% to EUR 18.87, the share price of the Hamburg-based biotechnology company is pushing close to the prominent resistance at EUR 19.40. A sustained break would generate follow-up potential to the September high at around EUR 23.01.

    The reason for the strong share price performance was the announcement of a cooperation with the Hannover Medical School to establish a molecular patient database for autoimmune diseases. According to the Company, the partnership aims to better understand Sjögren's syndrome (SjS) and systemic lupus erythematosus (SLE) by building a unique PanOmics longitudinal database from the analysis of patient material. For academic research purposes, MHH will have access to the data generated under the partnership via Evotec's AI-driven analysis software PanHunter. Evotec has exclusive rights to commercially exploit the data with its unique capabilities in the field of data-driven precision medicine.


    After the horrendous share price losses of the past months, many biotech stocks are about to complete their bottoming process. Evotec could generate a buy signal by breaking above a prominent resistance level. At Biogen, the signs are pointing to consolidation after the recent strong price rally. In contrast, analysts see a price potential of 700% for Cardiol Therapeutics.


    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    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 also 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 Fabian Lorenz on February 4th, 2025 | 07:30 CET

    OPPORTUNITIES in the Tariff Crash: TUI Facing a 50% Price Surge? Valneva Stock Strong! Multiplier with Desert Gold?

    • Mining
    • Gold
    • Travel
    • Biotechnology

    CAD 10 per ounce of gold. This is the current valuation of Desert Gold's resource - a real bargain with a gold price of over USD 2,800. There are good reasons why Desert Gold's share price should rise soon. Analysts even consider a multiplication of its value to be possible. Last week, Valneva showed just how quickly a stock can suddenly jump by 20% or more. Thanks to a multi-million dollar order from the US military, the downward trend in the share price has been broken. Are further price gains possible? Experts at TUI believe a 50% price jump is achievable. But is optimism ahead? Do these stocks offer opportunities in the tariff crash?

    Read

    Commented by Juliane Zielonka on January 31st, 2025 | 06:55 CET

    Vidac Pharma, Bayer AG, Novo Nordisk: Three companies that will shape the pharmaceutical landscape in 2025

    • Biotechnology
    • Biotech
    • Pharma

    The pharmaceutical industry is again demonstrating its market power between innovation and risk: Vidac Pharma reports a milestone in colorectal cancer therapy with VDA1275. The combination of the active ingredient with a chemotherapeutic agent achieves a 38.9% tumor reduction in preclinical studies. This synergy effect raises hope for gentler chemotherapy treatments and more innovative approaches. Bayer AG is making waves at the JP Morgan Health Conference with its pharmaceutical pipeline: the prostate cancer drug Nubeqa™ achieves blockbuster status with revenue of EUR 1 billion. In women's health, the first non-hormonal therapy for menopausal symptoms is expected to reach the US market as early as 2025. Novo Nordisk, on the other hand, is threatened with a class-action lawsuit in the billion-dollar market for obesity drugs: the REDEFINE-1 study on the promising drug CagriSema revealed weaknesses in the study design. After the results were made public, the share price fell by 18%. While Vidac Pharma and Bayer impress with precise study results, the Novo Nordisk case shows the fragility of methodological fuzziness. The details.

    Read

    Commented by André Will-Laudien on January 27th, 2025 | 07:40 CET

    Biotech - Here we go! 100% opportunities for Evotec, BioNxt, Bayer, Formycon, and Novo Nordisk!

    • Biotechnology
    • Biotech
    • Pharma

    Last week, the DAX 40 index reached a new all-time high of 21,520 points. At first glance, this sounds odd because half of the stocks are languishing at multi-year lows. However, the driving forces are the heavyweights SAP, Siemens, Allianz, Airbus, and Deutsche Telekom. They are pushing the index upward daily, putting ETF fund managers under pressure as they have to adjust the weightings accordingly. However, the more capital flows into the leading stocks, the more investors are looking for lagging stocks that could successfully turn the chart around due to operational turning points. We select a few opportunity stocks.

    Read