March 24th, 2022 | 13:07 CET
BioNTech, Cardiol Therapeutics, Moderna - New target groups to boost business
Table of contents:
Moderna for the little ones
The vaccine manufacturers' target group is being expanded once again. Moderna is currently testing its vaccine on children aged six months to five years. Initial results have been positive for the manufacturer. Administering the preparation twice produces robust antibody levels and is well tolerated, Moderna announced on Wednesday. According to the data, the vaccine protects rather poorly against infections with the Omicron variant, similar to adults, but there have been no severe disease developments. The Company now plans to submit regulatory applications for this age group to the US Food and Drug Administration (FDA), the European Medicines Agency (EMA) and other competent authorities "as soon as possible."
The interim results are based on data from a total of 6,700 children, with 4,200 between 2 and 6 years old and 2,500 children between six months and two years old. Adverse effects were reported to be mild or moderate and more common after the second dose, such as fever above 38 degrees. There were no deaths or inflammation of the heart muscle or sac or any severe inflammatory reactions.
Expensive vaccine manufacturer
Moderna shares rallied somewhat after a sharp correction from USD 497.29 to USD 124 and are trading at USD 180, with a broad resistance front standing in the way of a further run-up. Fundamentally, the share is still valued at a sporting USD 77.64 billion.
Despite its strong annual results, the Mainz-based vaccine producer BioNTech is also struggling with its current valuations and possible higher price targets. The stock market value of the German flagship company is USD 42.35 billion. In our opinion, an investment, even at the current, corrected level, does not impose itself.
Heart muscle inflammation as a result of mRNA vaccination
According to scientists, heart muscle or pericardial inflammation due to mRNA vaccination is rare, but it still occurs from time to time. The first cases were reported in the spring of 2021. Studies in the US also linked Corona vaccination to myocarditis or pericarditis.
The treatment of myocarditis belongs to the future therapies of Cardiol Therapeutics. In light of the fact that myocarditis is also one of the side effects of current vaccination campaigns, the scientific community is likely to be eagerly awaiting the completion of clinical trials. In addition, the Oakville, Canada-based company's lead product, CardiolRx, is based on an oral cannabidiol formulation that is pharmaceutically manufactured according to cGMP and is currently being evaluated in a Phase II/III clinical trial in patients with cardiovascular disease (CVD), or significant CVD risk factors, who are hospitalized with COVID-19. CEO David Elsley expects this trial to be completed during the second half of 2022.
The heart failure market is worth approximately USD 20 billion annually, and more than 26 million people in the Western world receive long-term treatment for this disease. Cardiol Therapeutics is funded for at least the next 24 months with a USD 50 million capital increase that took place in the fourth quarter of last year. At the same time, the Company is valued at a market capitalization of just EUR 86.81 million. Should the study data deliver positive results in the second half of 2022, Cardiol should grow wings. The share price currently stands at CAD 1.81 or EUR 1.31. The analysts at GBC Research already see a ten-bagger in the stock and assigned a price target of CAD 17.49 in their latest study.
Despite new records in the infection figures, the willingness to vaccinate is declining, and not only in Germany. The already ambitiously valued vaccine manufacturers Moderna and BioNTech are no bargains even at current levels. In contrast, analysts see no less than a tenfold increase for Cardiol Therapeutics.
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