January 31st, 2022 | 13:31 CET
BioNTech, Defence Therapeutics, Mainz Biomed - After Corona, cancer is the next hype
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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.
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.
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