Close menu




January 31st, 2022 | 13:31 CET

BioNTech, Defence Therapeutics, Mainz Biomed - After Corona, cancer is the next hype

  • Biotechnology
Photo credits: pixabay.com

The euphoria surrounding vaccine manufacturers has come to an end. The majority of investors believe that the end of the pandemic is near with Omicron. More and more states are abandoning restrictions and slowly returning to normalcy. If that happens, one of the biggest hypes of the last decade will come to an end. The pharmaceutical and biotech industries have earned very well from it. After the hype is before the hype. The next big story is cancer, and there are more and more cancer cases, so fighting the disease is a lucrative business. A lot is happening in this area, so we are looking at three companies today.

time to read: 4 minutes | Author: Armin Schulz
ISIN: BIONTECH SE SPON. ADRS 1 | US09075V1026 , DEFENCE THERAPEUTICS INC | CA24463V1013 , MAINZ Biomed | NL0015000LC2

Table of contents:


    BioNTech - Favorably valued

    Many market participants still perceive BioNTech as a pure-play corona vaccine manufacturer. The Mainz-based Company was the first to deliver a vaccine together with Pfizer, and so the stock shot up like a rocket. Now the share price is falling all the more sharply because investors fear an endemic situation, and perhaps hardly any vaccine is needed. Particularly since the first Corona pills have now also been approved in the EU. The current market movement seems somewhat irrational if you look at the numbers on the one hand and focus on the Company's development pipeline on the other.

    The Company is now only worth around EUR 33 billion, while sales in 2021 are around EUR 17 billion. Business can also be good in 2022, although perhaps not as strong as 2021. When looking at the pipeline, the Omicron vaccine is probably the next drug on the market. Through Comirnaty and the mRNA technology used, the door has been opened for upcoming pharmaceuticals. In addition to developing a flu vaccine, there are several cancer programs, with 5 of 16 already in clinical trials.

    The revenues will ensure further development and research. Currently, the Company should have about EUR 2.5 billion in cash. Investors should take a close look at the annual report and outlook for 2022 on March 30. Since the beginning of the year, the share has lost another 44% at its peak. From EUR 119.70, it went up again to currently EUR 140.90. If further drugs from the Company are approved, the valuation at this level appears too cheap in the long term.

    Defence Therapeutics - On the way to clinical trials

    Defence Therapeutics is based in Canada and specializes in the antibody-drug conjugate (ADC) therapeutic approach. The Company owns a patented biologic drug enhancer platform called Accum. This technology allows the Company to target small molecule drugs into affected cell nuclei, with the precise delivery improving the drug's effect by up to a factor of 10. This approach can also be used in vaccine development. In this case, the immune response can be up to 100 times stronger.

    The Company has already successfully tested a Corona vaccine in animals. On January 10, Eurofins Advinus was contracted to prepare the necessary GLP studies on the cancer drug AccuTOX to initiate the phase 1 trial in breast cancer patients. According to the first tests, the drug can fight 9 different tumor cells, which occur in skin, breast, colon, lymph and lung cancer. Progress on the HPV vaccine was also reported on January 26. Compared to the approved HPV drug Gardasil 9, it elicited a 36-fold higher immune response in animals.

    The Company's major advantage is versatility. Virtually all approved ADCs can significantly increase their efficacy using the Accum platform. Currently, management is looking for suitable active partnerships in the pharmaceutical sector to expand its portfolio. The potential of the markets in which the Company operates is enormous. USD 3.8 billion for HPV vaccines, USD 17.8 billion for breast cancer drugs, and the trend is up everywhere. The stock hit its all-time high of CAD 8.15 on September 10, 2021. Since then, the stock has consolidated and is currently trading at CAD 5.16.

    Mainz Biomed - Capital increase ends rally

    The capital of Rhineland-Palatinate is also home to the biotech company Mainz Biomed BV, which focuses on molecular genetic cancer diagnostics and diagnostics in the field of human genetics. The Company made its debut on Nasdaq on November 5, 2021. The flagship product is a test for the early detection of colorectal cancer, with which the Company wants to shake up the US market. Currently, there is only one approved test, so the market is still large enough.

    This type of cancer is the second most deadly cancer in the US, and early detection significantly increases survival rates. The competitor that has approval is Exact Sciences and has a market capitalization of USD 11.9 billion, whereas Mainz is just USD 186 million. If ColoAlert is approved in the US, this will result in a potential customer base of around 52 million. The test has already been approved in Europe.

    After the share had a furious start on the stock market, rising from USD 7.80 to USD 30, it went down just as steeply. After the high on January 18, the share fell to USD 14.43 by January 26. The reason is an announced capital increase, which will be made at USD 15 and will flush around USD 25.9 million into the coffers. The Company should thus be able to drive the business forward in the coming months.


    Cancer is on the rise. The three featured companies are trying to put a stop to this disease. BioNTech has raised a lot of money from its Corona vaccine and can use it to fund its continued development of cancer programs. Defence Therapeutics has found a way to better transport its drugs and vaccines with its patented platform. There will undoubtedly be exciting news in the future. Mainz Biomed, on the other hand, has dedicated itself to diagnostics. In any case, there is a lot of money in the fight against cancer.


    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 Stefan Feulner on May 23rd, 2022 | 13:01 CEST

    BioNTech, Monkeypox, Defence Therapeutics, Valneva - Is the next threat coming after Corona?

    • Biotechnology
    • Monkeypox

    The Corona pandemic is not over yet, but we should already prepare for future viruses. The next pandemic will come. When it will come is uncertain, and so is which pathogen will we have to deal with. Monkeypox is now spreading globally, and there are already the first cases in Germany. We find out what is known so far, where the dangers lie and what opportunities there are for the biotechnology sector from Dr Moutih Rafei, a renowned pharmacologist and head of research and development at the innovative company Defence Therapeutics Inc.

    Read

    Commented by Fabian Lorenz on May 19th, 2022 | 13:31 CEST

    Booster for the BioNTech share: BASF and Defense Metals with momentum?

    • RareEarths
    • Biotechnology

    The swing market continues to keep investors on their toes. On Tuesday, encouraging economic data and the prospect of an imminent end to the lockdowns in China ensured a good mood and significantly rising prices. The speech by Fed Chairman Powell could not change this. Only one day later, the euphoria has already faded, and the statements of the central bank chief are being interpreted negatively. Powell had reiterated the Fed's determination to fight inflation. Therefore, operational impulses are needed for shares to rise again. BioNTech's stock got a small boost from the FDA's approval of its Corona vaccine as a booster shot for ages 5-11. But analysts are waiting for more. At Defense Metals, investors hope for more from today's CEO presentation after solid drilling results. At BASF, several analysts are reducing price targets at once and see possible additional costs in the billions.

    Read

    Commented by André Will-Laudien on May 18th, 2022 | 12:48 CEST

    Biotech stocks: BioNTech, XPhyto Therapeutics, Novavax, Valneva - Crashing, the choice remains difficult!

    • Biotechnology
    • Covid19

    For pure play vaccine companies, the environment is getting tougher. On the one hand, the winter is over, and on the other, Corona has lost its horrors, especially as the Omicron variant presented like a cold for most infected people. 77.6% of the German population have received at least one vaccination dose so far. 63.1 million people have thus already received basic immunization, and 49.5 million people went for another shot. Only 4.6 million people, or 5.5%, have already received a second booster vaccination. 18.6 million people have not been vaccinated, or 22.4% of the population. With currently only 4,000 vaccinations per day, the many millions of vaccine doses ordered are likely to remain on the shelf. For vaccine manufacturers, future orders will plummet. Which Company has a plan B in place?

    Read