October 26th, 2022 | 10:15 CEST
BioNTech, Defence Therapeutics, MorphoSys - The rebound is on the way
The biotech sector is a growth market and, therefore, extremely capital-intensive. Due to the stricter monetary policy of the central banks, investors have given the promising sector the cold shoulder in recent months. Sector indices lost around 30% of their value, while the prices of individual stocks with a full development pipeline halved. The fact that several promising long-term companies are already trading below their cash levels shows that the panic is exaggerated. There are signs of a bottoming out, which could herald the next upward wave.
time to read: 4 minutes
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Author:
Stefan Feulner
ISIN:
BIONTECH SE SPON. ADRS 1 | US09075V1026 , DEFENCE THERAPEUTICS INC | CA24463V1013 , MORPHOSYS AG O.N. | DE0006632003
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"[...] As a company dedicated to developing treatments for rare heart diseases, we see this as an opportune moment to contribute to the fight against heart disease and make meaningful strides in improving heart health worldwide. [...]" David Elsley, CEO, Cardiol Therapeutics Inc.
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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MorphoSys - Monjuvi sales warning
The negative headlines for the biopharmaceutical company based in Planegg near Munich do not go away. Now a forecast adjustment for the cancer drug Monjuvi caused another sell-off on the stock markets. In addition to announcing preliminary net product sales of the drug in the US, which totaled USD 22.2 million in the third quarter and reached USD 64.1 million for the first nine months, the Company adjusted its full-year net product sales forecast downward to USD 90 million. Previously, revenues were expected to be between USD 90 and USD 110 million. The Company will release additional third-quarter figures on November 16.
"As indicated last quarter, we are seeing the impact of increased competition with additional treatment options for patients with relapsed or refractory diffuse large B-cell lymphoma. This resulted in a sequential decline in revenues for Monjuvi in the third quarter," said Jean-Paul Kress, Ph.D., Chief Executive Officer of MorphoSys. "Our teams continue to work diligently to ensure awareness and use of Monjuvi as a National Comprehensive Cancer Network preferred option for appropriate patients. Nevertheless, in light of this year's revenue performance, it was important to lower our expectations for the full year 2022 to approximately USD 90 million."
In addition to the sell-off in the stock, with the price down more than 12% since publication, various analyst firms also stepped in with downgrades. Deutsche Bank Research lowered the price target for MorphoSys from EUR 30.00 to EUR 18.00. The investment rating was also downgraded from "hold" to "sell".
Defence Therapeutics - Trend reversal in sight
The biotech company Defence Therapeutics could also rebound after a sharp correction of almost 80%; at least the news flow of the last weeks has been promising. The market capitalization is CAD 57.75 million, but the potential of the Company's proprietary platform is all the greater in the long term.
The Canadian biotechnology company Defence Therapeutics has positioned itself broadly with its Accum technology. The therapeutic process is used to fight cancer and to develop vaccines against infectious diseases such as COVID-19. ADC drug development serves as the basis. Antibody-drug conjugates promise great potential in cancer therapy because they can destroy cancer cells in a targeted manner. The therapeutic window of ADCs, that is, the ratio of efficacy to safety, compares favorably with other forms of therapy. Because the technology is precise, acting directly on the cancer cell, side effects can be reduced. The novel Accum method enables the precise transport of vaccine antigens or antibody-drug conjugates in the intact form to target cells, which is expected to result in improved efficiency and efficacy.
With the start of a new preclinical program using its new patent-pending technology AccuTOX, an Accum variant, another significant milestone has now been reached. The novel formulation is designed to treat lung cancer, including various types of malignant tumors of the upper and lower respiratory tract. The global lung cancer therapeutics market was valued at USD 24,667.82 million in 2021 and is expected to reach USD 54,475.11 million by 2029, growing at a CAGR of 10.41%.
AccuTOX is administered intranasally for effective transmucosal use and acts in the lungs. Future programs may also expand to include various malignancies of the upper and lower respiratory tract.
"Using AccumTM technology, Defence Therapeutics intends to become a global leader by delivering a new product line that can accumulate in target cells while exhibiting unprecedented pharmacological properties," said Defence Therapeutics CEO Sebastien Plouffe.
The Defence Therapeutics share is working on bottoming out in the area of CAD 1.50. A breakout above the downtrend formed since November 2021 at CAD 1.68 would generate a prominent buy signal.
BioNTech - On a knife-edge
Rebound opportunity or further sell-off? The share of the Mainz-based vaccine manufacturer BioNTech is facing an important decision on the charts. For the third time this year, the vertical support around USD 131.00 was successfully defended, but with a jump above the mark of USD 142.09, the chart picture would brighten significantly. The next short-term price target would then be the 200-day line at USD 155.67. The stock market star of the past year is receiving tailwind from the indicators. The RSI has already issued a buy signal, and the MACD trend tracker is on the verge of doing so.
On the corporate side, the planned production facilities for mRNA vaccines in Africa are at the top of the agenda. BioNTech is planning its first plant in Rwanda for 2024, with further plants planned in Senegal and possibly South Africa. Initially, plans call for two "BioNTainers" in Kigali, which will then be able to produce about 50 million doses of BioNTech and Pfizer's COVID-19 vaccine per year. In the long term, BioNTech plans to double production. In addition to COVID vaccines, the plant could also produce mRNA vaccines against tuberculosis and malaria. Clinical trials are already underway for these.
In its latest analysis, US bank JPMorgan significantly lowered its price target for the Mainz-based company from USD 183 to USD 132 but reiterated its investment rating of "neutral."
The capital-intensive biotech sector suffered in recent months from the stricter monetary policy of the central banks and lost disproportionately. Currently, a bottoming out is taking place not only in the broad indices. A trend reversal could also emerge for BioNTech and MorphoSys. Thanks to the broadly applicable Accum technology, Defence Therapeutics has enormous long-term growth potential.
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.
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