26. May 2021 | 08:15 CET
BioNTech, PsyBio, Bayer: The opportunities of tomorrow
Even after the pandemic, there will be no "business as usual" in the healthcare system, as shown by a survey conducted a few months ago by the Barmer Institute for Health Research. The scientists surveyed called for far-reaching reforms. In addition to billing and uniform rules, digitization could also be a key to meaningful reforms. Innovative drugs also play a role when it comes to treating Covid-19 and concomitant diseases.
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ISIN: US09075V1026 , CA6936971044 , DE000BAY0017
"[...] Accum™ helps us target active ingredients precisely to the origin of infections or diseases. [...]" Sébastien Plouffe, CEO and Director, Defence Therapeutics
BioNTech: Come to stay
BioNTech's vaccine could be a constant companion for people in the future. Viral variants are constantly emerging and the protection of existing vaccines is gradually declining. So far, BioNTech has shown good protection against viral variants, but early voices already expect that there may be a booster starting in the fall. For BioNTech, this circumstance is good news - after all, the vaccine manufacturer specializing in mRNA technology should continue to receive orders for years to come.
The discussion about the cancellation of patent protection is also likely to affect BioNTech less than initially thought. The Mainz-based Company does not want to give up patent protection but wants to accommodate poorer countries. This practice could be a compromise that promises BioNTech continued good business. On the stock market, the share is currently moving sideways. However, given the significant increase in the previous months, this is not a disaster. In addition, BioNTech can also score in other areas with its expertise in mRNA technology. The share is expensive, but the Company is good. However, the share price potential is limited.
PsyBio: Biotech newcomer continues to collect patents
What mRNA technology was a few years ago is what the active ingredient psilocybin is now. The psychoactive substance from mushrooms is soon to be launched on the market as a drug. The US biotech Company PsyBio researches psilocybin and related active ingredients in close cooperation with universities and research institutes. Thanks to this research work, the Company has succeeded in filing several patents. The Company recently added a new patent around improved methods for the production of psilocybin and by-products. PsyBio focuses on producing active ingredients synthetically using bacteria rather than from mushrooms.
In doing so, the Company is taking a similar approach to what Bayer did with aspirin many years ago. The formerly herbal active ingredient was synthesized and thus became an effective drug with consistent dose and quality. PsyBio wants to follow a similar path with its active ingredients to combat depression. While classic medications for depression still have a strong impact on patients' bodies, psychoactive substances based around psilocybin have the potential to take effect quickly. Users report formative experiences after just one use. Fears around palliative treatment, for example, could be addressed. The PsyBio share is currently suffering from the market environment. However, investors should note the value. With a market capitalization of only around EUR 20 million, things can move quickly here.
Bayer: Things are moving forward!
Bayer is currently showing that companies whose share price has hit rock bottom can be quite promising. Battered by the glyphosate scandal, the share has lost steadily in recent years. The Company is still suffering from pending litigation. But, the stock promises a lot: In addition to a dividend yield of more than 5%, the Company also shines with a high EBITDA margin. Although Bayer is rebuilding itself and has not yet tackled all problem areas, the chemical group's stock has already risen in recent months. The EUR 56 mark could prove to be resistance in the short term.
Exciting years lie ahead for the pharmaceutical and chemical sectors. Investors could see new technology less as a risk and more as an opportunity after the Corona disaster. On the one hand, this applies to digital solutions but also innovative active ingredients. There are already accelerated approval processes in the wake of the pandemic - the best example being vaccines. In the next step, biotech companies could also benefit from the realization that things can be done faster. While stocks such as BioNTech are already the talk of the town, the much more speculative PsyBio is still completely unknown. Opportunity-oriented investors can take a closer look at this stock.