Close menu




December 22nd, 2021 | 13:50 CET

BioNTech, Novavax, Cardiol Therapeutics: This pandemic profiteer is as cheap as can be

  • Biotechnology
Photo credits: pixabay.com

Omicron is coming; that much seems certain. But what does the virus mean for the stock market? Currently, the forecasts of the modelers are dominating the news. While some see it as scaremongering, others consider epidemiological models a rational approximation of what we face. Like a crystal ball, so to speak, but without the hocus-pocus. To assess the situation as an investor, it makes sense to assume neither the best nor the worst. We analyze the current viral situation and explain what this could mean for typical Corona stocks.

time to read: 3 minutes | Author: Nico Popp
ISIN: BIONTECH SE SPON. ADRS 1 | US09075V1026 , NOVAVAX INC. DL-_01 | US6700024010 , CARDIOL THERAPEUTICS | CA14161Y2006

Table of contents:


    BioNTech and Novavax: Different omens

    BioNTech's stock is now a classic on the stock market. The Company is no longer a newcomer but is earning good money for the foreseeable future. The Coronavirus is constantly changing, and, according to all analyses to date, the new Omicron variant is significantly more contagious than the Delta variant, which was more contagious than its predecessors. It is entirely appropriate not to take the upcoming wave lightly. In addition, Omicron is different from the previous variants and, to all appearances, is not as well recognized by the immune system. For this reason, major vaccine manufacturers, such as BioNTech and Moderna, are already adapting their vaccines. The expected benefit is that those immunized with the new vaccine will do better with Omicron and possible successors.

    Thanks to the mRNA technology used by BioNTech and Moderna, adaptation to new virus variants should be rapid. Currently, the Company expects to have the corresponding solutions available as early as April. According to Klaus Cichutek, President of the Paul Ehrlich Institute, obtaining approval with a small clinical trial should also be possible. The reason is the flexibility of the mRNA technology.

    BioNTech: In case of doubt, the Mercedes of vaccines benefits

    However, Novavax, the new protein-based vaccine from the US that does not require mRNA technology, will also be adapted to Omicron's unique challenges. The Company is currently testing how effective the vaccine is in its original form. In parallel, some approval procedures are underway. In the EU, the vaccine received the green light from the EU's Medicines Agency (EMA) this week. However, it remains to be seen whether this recommendation will result in approval in Germany. Germany has already lagged in approval procedures in the past - the upcoming holidays are unlikely to help the situation.

    Novavax shares have risen by around 20% in recent days but are already weakening. The unclear efficacy against Omicron and the pending approval procedures could mean that the vaccine will be left behind in the wake of the Omicron wave. BioNtech, on the other hand, is better positioned. The vaccine is considered the Mercedes of vaccines, and the stock has found a bottom at EUR 200. In addition, BioNTech is also well positioned around other vaccines, such as against cancer.

    Cardiol Therapeutics: Analysts see a fourfold increase

    While Novavax and BioNTech are relatively expensive, the share of Cardiol Therapeutics is still trading in the area of the three-year low. Yet, the stock is also a Corona beneficiary. Cardiol Therapeutics researches inflammatory heart disease and has developed several pharmacological formulas for this purpose that have already been studied in trials. Inflammatory heart diseases, such as myocarditis, are possible side effects of COVID-19 infection. But typical diseases of civilization, such as high blood pressure and diabetes, also affect the heart. Cardiol Therapeutics is currently treating COVID-19 patients with its active ingredient CardiolRX as part of a Phase 2/3 study. Results are expected in the first half of 2022. If the study is positive, Cardiol plans to file for emergency approval and enter the market by the end of 2022.

    Recently, Cantor Fitzgerald analysts gave the stock an "overweight" rating and called for a price target of USD 8. Currently, the stock is trading around USD 2. The Nasdaq-listed share has repeatedly been good for steep rises and dynamic developments in recent months. No wonder - CEO David Elsley frequently drew parallels to comparable companies in the past, which were taken over many times after positive study results. But that is - as of today - pie in the sky. The stock has been significantly punished following a USD 50 million corporate action. The upside is that the Company appears to be adequately funded for 2022. Further negative surprises from the financing side should be ruled out.


    While many investors are piling into vaccine maker stocks, Cardiol Therapeutics could also benefit as a research-based biotech company with a compound to address the consequences of COVID-19 and other diseases. Accelerated approval in view of the pandemic also does not seem unrealistic. From a chart perspective, the share looks interesting but remains a hot potato that only experienced investors should touch.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by Stefan Feulner on June 27th, 2022 | 12:12 CEST

    BrainChip and Palantir with strong rebound - How does BioNTech react?

    • chips
    • Technology
    • Biotechnology

    The correction on the stock markets has been going on for months. Technology stocks, in particular, have been hit hard. Due to the end of the ultra-loose monetary policy and possible larger interest rate steps, even market leaders lost more than 80% of their ground in some cases. Whether interest rate hikes can be implemented as planned in the coming months, on the other hand, appears more than questionable. After all, the spectre of recession is already hovering over the capital markets. Moreover, the historical debt levels of several countries are likely to rule out further interest rate hikes.

    Read

    Commented by Fabian Lorenz on June 23rd, 2022 | 11:35 CEST

    Takeover fantasy: +50% in Valneva shares, and what are BioNTech and Defence Therapeutics doing?

    • Biotechnology
    • Pharma

    Tension is rising in the biotech sector as the takeover merry-go-round spins faster and has now hit Valneva. Pfizer's entry caused the stock to explode 50% in three trading days. Earlier, Pfizer had announced it would acquire migraine specialist Biohaven for USD 11.6 billion. Other pharmaceutical giants are also active: Halozyme wants to swallow Antares Pharma, a specialist in urology and endocrinology, for USD 960 million. The acquisition of Sierra Oncology is costing GlaxoSmithKline around USD 1.9 billion. Like Valneva, Defence Therapeutics is about to start important trials and could attract a major partner. A takeover of BioNTech is unlikely, but the flagship German biotech should also benefit from improved sentiment in the industry. The coming week should be operationally exciting for shareholders.

    Read

    Commented by Nico Popp on June 22nd, 2022 | 13:01 CEST

    Crisis investments? Pharmaceutical stocks in check: Bayer, XPhyto, Pfizer

    • Biotechnology
    • Pharma

    Many investors want solid foundations for their portfolios when the market is in turmoil. Pharmaceutical stocks have always been considered largely detached from the overall market - after all, our health is not subject to market cycles. We explain whether this assumption is correct and how investors can now invest in stocks from the sector, using three shares as examples.

    Read