23. August 2021 | 12:25 CET
BioNTech, Defence Therapeutics, Dermapharm, NanoRepro - Vaccinate, Test, Treat!
The vaccination rate in Germany is now just under 59% with complete second vaccination. The Ministry of Health had assumed a 70-80% rate by late summer. The situation has now changed, and the autumn in Germany will likely take place under different conditions. Since the beginning of August, the many travelers returning home have had to undergo a test at the entry border to Germany. Presumably, the number of infections will also rise again, making testing mandatory for social life. Vaccination and testing, therefore, remain ongoing issues for the capital markets.
time to read:
ISIN: BIONTECH SE SPON. ADRS 1 | US09075V1026 , DEFENCE THERAPEUTICS INC | CA24463V1013 , DERMAPHARM HLDG INH O.N. | DE000A2GS5D8 , NANOREPRO AG | DE0006577109
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
BioNTech - The first profit-taking sets in
BioNTech shares have been a clear stock market star since their launch in August 2019, with a placement price of USD 20 - last week, the share price reached the USD 400 mark. That makes the Marburg-based Company worth over USD 100 billion. Major shareholders with over 47% are still the Strüngmann brothers. As a result, they rise to number 1 in the German billionaire's list, ahead of the Aldi and Lidl founders.
After a two-year rally, BioNTech shares began a correction in August. From a high of USD 463, the share price fell to USD 348 by Friday. No disaster, but investors seem to be nervous, especially as reports of possible further side effects are piling up, and the population's willingness to vaccinate is declining. Overall, no big deal for the market leader, in our opinion. Secure your profits with a stop at USD 320 and stay invested.
Dermapharm on board since 2020
With the production of the Corona vaccine by BioNTech and its US partner Pfizer, Dermapharm Holding SE is also making an important contribution to the fight against the Corona pandemic. The Company would like to be involved in the development of a COVID drug. To this end, Dermapharm has acquired a stake in a promising player. As part of a capital increase, it is acquiring 24.9% of CORAT Therapeutics GmbH. The Company was launched in May 2020 and reportedly holds several patents of antibodies to treat human infectious diseases. The share price of Dermapharm has already appropriately reacted to the positive news and has risen by 66% since mid-2020 to most recently EUR 76. As a result, the capitalization here has already reached an impressive EUR 4 billion. The slipstream from BioNTech has an extremely inspiring effect here, and the share still has potential.
Defence Therapeutics - Selection process for AccumTM variants very successful
It is not only the COVID fight that offers investors opportunities. Recently unveiled, Defence Therapeutics from Canada is a young biotechnology company advancing next-generation vaccines and antibody drug conjugates (ADCs) based on its proprietary Accum platform. Last week, there were new reports on the efficacy of the best AccumTM variants according to the selection process. For this purpose, Defence had tested 43 AccumTM variants conjugated to T-DM1 at a low conjugation ratio (1-4 AccumTM per T-DM1) to identify the best variants for in vitro evaluations. These studies demonstrate the additive effect of AccumTM technology and guide the selection of optimal Accum-T-DM1 in vivo assays in breast and gastric cancer models.
Among the 43 AccumTM variants tested, the 8 best were selected to be studied in more detail by the Finnish cooperation partner HUS Comprehensive Cancer Center in Helsinki. As a result, the 8 selected Accum-T-DM1 conjugates were able to increase the efficacy of T-DM1 by at least fivefold in the trastuzumab- and T-DM1-resistant HER2 positive breast cancer cell line model called JIMT-1. At a 1.0 ug/ml concentration, T-DM1 induces only about 10% of cytotoxicity compared with Accum-T-DM1 variants, which increase cytotoxicity by 40-70%. The Finnish partner will also carry out a direct comparison with the new ADC Enhertu(R) from AstraZeneca and Daiichi Sankyo.
The AccumTM platform has been developed and tested in vitro by Defence to enhance intracellular drug delivery in numerous ADCs approved by the US Food and Drug Administration (FDA) or in development. In this regard, Defence has initiated a new study project testing AccumTM variants in the recently developed ADC Enhertu(R) (fam-trastuzumab deruxtecan-nxki) from AstraZeneca and Daiichi Sankyo. Defence's scientific team anticipates that AccumTM will enhance the transport of deruxtecan to the nucleus and significantly enhance the ADC's efficacy. Deruxtecan is an inhibitor that specifically targets the nuclear cell protein topoisomerase I.
Defence Therapeutics is progressing rapidly and the pipeline is extremely promising. The global immunotherapy market will reach over USD 100 billion in 2021. If DTC succeeds in bringing an innovative product to market, a valuation multiple could occur as early as 2022. One should build the first stocks now.
NanoRepro - Back in focus
The share of the Marburg-based test specialist NanoRepro has been back in focus for a few days. The reason is undoubtedly the announcement by some state governments that they will require vacation returnees to be tested in order to detect introduced COVID infections as quickly as possible. The general implementation of the 3G rule for social events, restaurant and stadium visits would lead to a tremendous need for rapid testing.
NanoRepro recently reported that they had received final approval for two SARS-CoV-2 rapid antigen tests. The rapid antigen and home tests can now be marketed across Europe with the CE mark. According to management statements, EUR 250 million in sales are definitely on the cards for 2021, and EUR 400 million has also already fallen as a contingency. The cash box is already filled with more than EUR 80 million from the last test sales. At a share price of EUR 8, the market capitalization of EUR 120 million is only slightly above the cash value of the share. Six weeks ago, the share was still available below EUR 6; the high was over EUR 22 in March. NanoRepro is a speculative hot revival stock for the late summer.
The biotech companies presented here address the field of immunization and human therapy in connection with COVID-19. The prices have already risen very sharply but still offer potential. Defence Therapeutics is developing a promising platform that could also be effective in cancer. Those who can achieve success here will create considerable shareholder value.