Close menu




November 7th, 2022 | 10:31 CET

BioNTech, Cardiol Therapeutics, Bayer - Strong growth in the pharmaceutical industry over the coming years

  • Biotechnology
  • Investments
Photo credits: pixabay.com

Demographic change is bringing new customers to pharmaceutical and biotech companies. Worldwide, the population is getting older, and with it, the number of patients with dementia, cancer and heart disease. Experts estimate that the population over 65 will increase steadily until 2050. The 'pill gap' will start to have a real impact from 2030, and then the proportion of the aging population will rise again in proportion. Accordingly, all healthcare companies will see growth as the number of customers grows. So today, we look at three companies committed to better patient health.

time to read: 4 minutes | Author: Armin Schulz
ISIN: BIONTECH SE SPON. ADRS 1 | US09075V1026 , CARDIOL THERAPEUTICS | CA14161Y2006 , BAYER AG NA O.N. | DE000BAY0017

Table of contents:


    Sébastien Plouffe, CEO, Founder and Director, Defence Therapeutics Inc.
    "[...] Defence will continue to develop its Antibody Drug Conjugates "ADC" and its radiopharmaceuticals programs, which are currently two of the hottest products in demand in the pharma industries where significant consolidations and take-overs occurred. [...]" Sébastien Plouffe, CEO, Founder and Director, Defence Therapeutics Inc.

    Full interview

     

    BioNTech - Quarterly figures point the way

    Pfizer's latest quarterly results helped BioNTech's stock gain ground on November 4. The German vaccine maker's partner surprised analysts with an increased quarterly profit of 40%. The main driver was the Comirnaty vaccine. Today, November 7, BioNTech will publish its quarterly results. Already on Friday, investors were expecting positive numbers. After some deliveries were postponed in the second quarter, these could be reflected in the figures for the third quarter. In addition, the US partner plans to use the expiration of contracts with the US government to significantly adjust prices for the Corona vaccine upward.

    The Mainz-based Company will invest the proceeds in the development of new blockbusters. The Corona vaccine has made mRNA vaccines socially acceptable. BioNTech hopes to use the technology to fight influenza and cancer in the future. The Company is particularly active in cancer research, as the market is growing and holds much potential. There are 11 preclinical phase projects in the development pipeline, 16 in phase 1, 5 in phase 2 and BNT161 against seasonal influenza in phase 3. In the US, the Company is testing a combined vaccine against influenza and COVID.

    So the Company is not resting on its Corona laurels. Even though there is still a long way to go for the cancer agents, the potential is clear. In anticipation of good figures, the share exited trading on Friday with a gain of over 5.5% at EUR 156.40. The downward trend has thus been broken for the time being. On October 21, Berenberg put the share at Buy with a price target of USD 312. If the Mainz-based company achieves a breakthrough in cancer vaccines, such price targets are realistic, albeit only over a longer investment horizon.

    Cardiol Therapeutics - Focus on ARCHER study

    Canadian biotech company Cardiol Therapeutics owns CardiolRx, a synthetic liquid high-purity CBD-based drug that can be used to treat cardiovascular disease. It was started with the so-called LANCER study, which targeted hospitalized COVID-19 patients with a history of cardiovascular disease. In the meantime, there are fewer and fewer severe corona cases, so it was difficult to find suitable subjects. As a result, on October 25, the Company announced it was discontinuing the LANCER study. The focus is now on the Phase 2 study called ARCHER, which is looking at acute myocarditis, as well as a multicenter Phase 2 pilot study against recurrent pericarditis, which is an inflammation of the pericardium.

    The pilot study will enroll 25 patients in large US hospitals specializing in recurrent pericarditis. Pain at baseline will be compared with pain 8 weeks after treatment. The ARCHER study will be continuously developed as approvals are obtained from several countries. 100 patients will be enrolled in the study at major cardiac centers in North America, Europe, Latin America, and Israel. Evaluations will take place after 12 weeks of double-blind therapy. Those who would like to learn more are referred to CEO David Elsley's presentation from the 4th International Investment Forum, which is available on YouTube.

    The savings from the LANCER trial have financed the Company through 2026. At the same time, the stock, which trades on NASDAQ, is currently trading below cash. The share currently stands at USD 0.5868, giving it a market capitalization of just over USD 36 million. At the end of June, the Company still had more than CAD 70 million in cash, which corresponds to around USD 52 million. Analysts at Leede Jones Gable adjusted their price target downward from CAD 6 to CAD 4.50 due to the discontinuation of LANCER. Accordingly, the stock has tremendous upside potential, while downside risk should be limited due to the cash position.

    Bayer - Light at the end of the tunnel

    Bayer seems to be slowly awakening from its slumber. After the Monsanto takeover for around USD 63 billion, the Group is still struggling with many lawsuits surrounding the drug glyphosate. It has not only caused uncertainty among shareholders but also cost a lot of money. High raw material and energy costs are currently weighing on the Chemicals division. There are new problems with the substance PCB, which is suspected of making people ill. Bayer has also had to invest money in this area. Glyphosate will no longer be sold to private customers as early as 2023. This should put an end to the flood of lawsuits.

    By contrast, the pharmaceutical sector is doing very well. But the Leverkusen-based company is also investing in this area. Last year, the Group invested around USD 2 billion in cancer research alone. On October 17, the Company announced that its menopause drug elinzanetant would also be made available to breast cancer patients. The drug is in Phase 3 trials. Originally, the drug was only used for common menopausal hot flushes. The phase 2/3 study of aflibercept also recently produced positive results in diabetic macular edema. The sustained efficacy is between 83 and 93%.

    The share is currently trading at EUR 53.88. Even though a first upward trend has been established, the share must reach closing prices above EUR 55.94 to break the downward trend. The impetus for this could come from the quarterly figures on November 8. Analysts expect a significant increase in adjusted earnings. There is talk of more than 50%. The Company's first executive bodies have also recently bought shares. This can be seen as a positive signal. On Tuesday, one should take a close look at the quarterly figures.


    More and more elderly people translate to more and more customers for pharmaceutical companies. BioNTech has benefited from the Corona pandemic and is using the profits to develop its next blockbuster. Cardiol Therapeutics is now focused on inflammation of the heart muscle and sac and is funded through 2026. Positive trial results should kiss the stock awake. Bayer is benefiting from higher fertilizer prices and the well-performing pharma sector. Here, the turnaround after the Monsanto disaster could succeed.


    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

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by André Will-Laudien on February 17th, 2025 | 06:25 CET

    Things are heating up with Alibaba and Credissential, while Palantir and SAP ride the AI boom

    • Investments
    • Software
    • hightech
    • Digitization

    The stock market is picking up speed. In addition to the high-tech and AI fantasy, there are rumors of peace in Ukraine. European equities that are likely to play a role in any reconstruction are attracting a lot of attention. Cement maker Heidelberg Materials has been performing well for weeks, and Siemens is also gaining daily. Outside of geopolitical considerations, SAP remains the only German cloud of hope to be a long-running success. Is a correction possible here? It is difficult to imagine at the moment, so attention is turning to lagging stocks or stocks that have already fully exploited their momentum. For those paying close attention, divergences are visible!

    Read

    Commented by Fabian Lorenz on February 13th, 2025 | 07:10 CET

    ACQUISITION?! Renk, BioNTech, and Biotech Highflyer Vidac Pharma

    • Biotechnology
    • Biotech
    • Defense

    Is Renk about to be taken over? Quite possible. The Company, known for its transmissions for the Leopard tank, has a new major shareholder. And it turns out to be none other than KNDS – the maker of the Leopard 2 tank. The Renk share price reacted with a jump of 10%. Is there more to come? Vidac Pharma is also frequently mentioned as a potential takeover candidate. Like BMW, the Company is working on a "new class". But in this case, it is to save human lives. To this end, last year's biotech highflyer aims to revolutionize cancer treatment. Experts believe that a multiplication of the share price is possible. BioNTech is also fighting cancer. In addition to its own research, the German company is strategically focusing on acquisitions. Another one has just been completed. What is next?

    Read

    Commented by Juliane Zielonka on February 11th, 2025 | 08:40 CET

    Palantir, Credissential, Deutsche Bank – AI separates winners from losers

    • Investments
    • Banking
    • Software
    • AI
    • Technology

    AI is revolutionizing the business world and, for good reason, transforming entire industries. Palantir is setting new standards in data analysis by integrating Grok, the AI chatbot developed by Elon Musk for his X platform. The Canadian tech company Credissential is also pursuing a platform approach. Here, the AI-supported solution is developing a comprehensive package for buying used cars online in the US market. In addition to the vehicle, the software is being developed and marketed to a predominantly young audience and Credissential is building its software to offer appropriate insurance, transfer costs, and other relevant add-ons. Once implemented, the company expects an improved conversion rate by connecting to the digital marketplace. Deutsche Bank is currently facing a fine of EUR 10 million. Employees sold financial derivatives to small and medium-sized companies in Spain, whose risks was largely not communicated.

    Read