04. February 2021 | 08:15 CET
BioNTech, Cardiol Therapeutics, Johnson & Johnson: biotech gems from the well-known to the unknown
If there's one industry that's rightfully making big profits these days, it's healthcare companies. The pandemic has kissed the industry awake. In addition to the current relevance around Covid treatment, test procedures, or even vaccinations, there is also a growing awareness that medical innovation depends on research. More and more investors are willing to push promising projects and the general conditions for this could not be better. There is a consensus in politics, society and business that health is the highest good.
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ISIN: CA14161Y2006 , US09075V1026 , US4781601046
BioNTech: Is there more to come?
The Mainz-based Company BioNTech has played a significant role in boosting the image of biotechnology and pharmaceuticals in recent months. After all, BioNTech developed one of the most advanced vaccines against Covid-19 in cooperation with Pfizer. BioNTech succeeded in creating a revolutionary vaccine with the help of mRNA technology. The vaccine was preceded by many years of basic research - and for research, there has to be financing. For BioNTech, it was Thomas Strüngmann from the Hexal dynasty who supported the Company early on.
Thanks to the vision of a few investors, it is now even conceivable that BioNTech will also use its technology for vaccines against other diseases, such as cancer. The share price has climbed more than 260% since a year ago, which seems appropriate given the outlook.
After the initial vaccine euphoria had faded, some market participants expected a price correction in the BioNTech share. But apart from a consolidation, nothing has happened so far. Currently, the share is stalking its way back to the EUR 100 mark. After a weak December, the stock could now have enough momentum even to reach new record prices. Since BioNTech, with its modern vaccine and mRNA technology, is well prepared to react to unforeseen turns of the pandemic, one should not write off the share. On the contrary, it looks as if the market has not yet fully realized the potential of the Company.
Cardiol Therapeutics: Inflammatory Heart Disease specialist with a Covid focus ahead of planned Nasdaq listing
Great potential for the fight against Covid-19 and one of the most prevalent diseases in Western countries, heart failure, comes from Canadian pharmaceutical company Cardiol Therapeutics. The Company is preparing to combat inflammatory heart disease using its ultra-pure, high concentration cannabidiol oral formulation CardiolRx™. Cardiol Therapeutics uses an extra-strength dose of cannabidiol to ensure that the active ingredient is highly effective when taken orally. Pre-clinical studies show that the active ingredient can assist with decreasing injuries to the heart muscle and reduce inflammation. In addition to treating Covid-19 patients with a prior history of, or risk factors for, cardiovascular disease, potential applications include treating acute myocarditis and diastolic heart failure.
Cardiol’s Phase II/III, double-blind, placebo-controlled Covid trial will commence imminently. Studies are also planned in other indications, such as acute myocarditis and diastolic heart failure. Cardiol Therapeutics is very satisfied with their progress and is well-positioned to bring their future treatments to the market. In recent months, the Company has been able to attract several renowned cardiologists from all over the world to form a Steering Committee for Cardiol’s trials, including heart failure experts from the Charité hospital in Berlin and other leading university hospitals.
In addition to CardiolRx™, Cardiol Therapeutics has also recently launched Cortalex™, a CBD product characterized by great purity and freedom from THC. The Company hopes to win over older patients in particular, who in Canada prefer to use CBD products and are authorized these by their family doctors. Cardiol Therapeutics is currently valued at around EUR 80 million and aims for a listing on Nasdaq soon to become more visible to US investors. The stock is already tradable in Germany. Given the promising interim results of CardiolRx ™ in the context of common cardiac disease conditions and the stock's relative obscurity, the stock could soon attract attention from investors.
Johnson & Johnson: Basic investment with high valuation
Companies like Johnson & Johnson are also likely to be watching what innovative pharmaceutical companies like Cardiol Therapeutics are doing - after all, multinationals are always on the lookout for the next blockbuster. The fact that large companies are willing to dig deep into their pockets for acquisitions in the pharmaceutical sector is shown, for example, by the media reports surrounding companies such as Alexion Pharmaceuticals or BioMarin Pharmaceutical. Rarely do such speculations run below the billion-dollar mark. Johnson & Johnson currently has a few hot irons in the fire with Stelara for psoriasis and the anti-psychotic Trinza. Johnson & Johnson also has powerful active ingredients for cancer in its portfolio.
The Company is also active in the fight against Corona and is continuing its search for a vaccine. In addition to drugs, Johnson & Johnson also offers consumables and other medical products. The share is therefore considered a fundamental investment. However, the word has been out for many months - the value is already expensive because of this. For Johnson & Johnson, its valuation offers the opportunity to pay for possible takeovers in its shares. There are currently better values for private investors with a high demand for growth and dynamism in a portfolio.