Close menu




December 12th, 2022 | 10:20 CET

BioNTech, va-Q-tec, Cardiol Therapeutics, Ambrx Biopharma - Biotech second-line stocks explode

  • Biotechnology
  • Growth
  • Investments
Photo credits: pixabay.com

For investors in biotech stocks, 2022 was often a year to forget. After the Corona hype, the market clouded over significantly, in part due to rising interest rates. December is the time of year when investors can make adjustments to their portfolio, thereby reducing their tax burden for the year ahead. This year is no exception, yet three stocks shot up last Friday. That is unusual during tax loss season. We look at the three high flyers and BioNTech, a big player in the biotech sector.

time to read: 4 minutes | Author: Armin Schulz
ISIN: BIONTECH SE SPON. ADRS 1 | US09075V1026 , VA-Q-TEC AG NA O.N. | DE0006636681 , CARDIOL THERAPEUTICS | CA14161Y2006 , Ambrx Biopharma Incorporation | US02290A1025

Table of contents:


    David Elsley, CEO, Cardiol Therapeutics Inc.
    "[...] 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.

    Full interview

     

    BioNTech - Partner va-Q-tec is acquired

    The BioNTech share has also lost over 50% of its value since the beginning of the year. In the meantime, the share price has only fallen by a good 28%. The main reason is that the Corona pandemic has flattened out and there is corresponding uncertainty as to whether the company will continue to earn so well. Due to the BioNTech weakness, the specialist for temperature-controlled transport solutions va-Q-tec may also have been dragged down. The company is one of BioNTech's service providers to safely transport vaccines. But it is not only the TempChain logistics business segment that has performed well.

    This has not gone unnoticed by EQT and so a takeover offer at EUR 26 was published on December 9. In the morning, the share was still available at 16.32 EUR. According to the takeover bid, EQT wants to further develop all business areas of va-Q-tec. For the deal to go through, 62.5% of all shareholders must approve the offer. The support of the founding family, which holds 25.8%, is probably certain. If the offer is approved by the shareholders, a capital increase of 10% at EUR 26 will subsequently be subscribed by EQT.

    BioNTech itself is investing EUR 40 million in Ryvu Therapeutics, which is developing oncology therapeutics. In return, the Mainz-based company will receive the exclusive license for the STING agonist portfolio. In addition, the two companies will jointly implement drug development and research projects. The deal will enable BioNTech's immunotherapy pipeline against cancer to be supplemented with potent immunomodulatory agents. On Dec. 9, the combined Corona/flu vaccine received fast-track designation from the FDA. This facilitates testing. The Mainz share exited Xetra trading on Friday at EUR 161.45, once again failing to break the EUR 162.60 mark on a closing price basis.

    Cardiol Therapeutics - Good study results

    Canadian biotech company Cardiol Therapeutics is listed on the NASDAQ and has suffered a 75% setback since the beginning of the year. It is logical for investors to dump the stock in December, realizing losses to offset gains and thus keep their tax payments low. However, last Friday, the share shot up and went out of trading with a plus of 46%. If you start looking for clues, you will not find any news. The Company was trading below cash as of December 8, and volume in the stock has skyrocketed. Does anyone know more?

    Cardiol Therapeutics is pioneering innovative anti-inflammatory treatments for cardiovascular disease. Their lead product, CardiolRx, is a high-quality and concentrated oral cannabidiol formulation. The focus is on completing the Multicenter Phase II pilot study in recurrent pericarditis. On November 7, the Company announced that pharmaceutically produced cannabidiol in CardiolRx can significantly reduce pericardial effusion and thickening in acute pericarditis. Relevant study results were presented at the American Heart Association Scientific Sessions 2022.

    Alongside this, patient recruitment for the ARCHER acute myocarditis trial is intensifying, and work is underway on a heart failure formulation that can be injected under the skin. Operationally, things are going well, but the trials cost money. In the first 9 months, the Company invested already a lot in research, development and studies and posted a loss of CAD 23.42 million. At the end of September, there was still CAD 65.5 million in its coffers, meaning the Company is financed through 2026. With further positive study results, the share, currently quoted at CAD 1.01, should take off again. The last analyst recommendation came from Cantor Fitzgerald and had a price target of USD 4.00. One should keep a close eye on how the stock fares in the coming days.

    Ambrx Biopharma - Share with +1,000%

    Ambrx Biopharma shows how fast it can go. On December 8, the share went out of trading at USD 0.41. One day later, at the close of trading, the bottom line is a closing price of USD 4.54, a gain of over 1,000%! The explosion was triggered by positive study results of the Ambrx drug ARX788 in patients with metastatic breast cancer previously treated with Roche's Kadcyla. A total of two Phase III studies and one Phase II study are being conducted in China by partner NovoCodex Biopharmaceuticals.

    Results showed an overall response rate of 51.7% and a disease control rate of 100% in 7 patients. Treatment with ARX788 was well tolerated, with 85.7% of patients having drug-related adverse events of any grade and no serious adverse events. The median duration of ARX788 therapy was 7.2 months. Currently, the Company is looking for partners outside of China. With the trial results, they may now have opened some doors.

    The next trial results are expected in 2023. The example of Ambrx Biopharma shows how volatile the biotech sector is. One piece of positive news can change everything. Then the big players suddenly take notice, and with a strategic partner, the future of a biotech company can change very quickly.


    Conclusion
    The biotech market remains exciting, even though the interest rate hikes have forced the market to correct. BioNTech is working on the next blockbuster drug and has targeted a growth market with cancer therapy. va-Q-tec has grown through BioNTech, making it a takeover candidate. Cardiol Therapeutics has skyrocketed without any news. It is worth following the news here in the next few days - there may be results to follow. The example of Ambrx Biopharma shows how quickly a share can be revalued.


    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    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 also 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 André Will-Laudien on February 20th, 2024 | 07:30 CET

    Takeover fever in the biotech sector! Will MorphoSys now be followed by Defence Therapeutics, Evotec and Bayer?

    • Biotechnology
    • Pharma
    • Innovations

    It has happened: Novartis is bidding for MorphoSys. Once again, a long-lasting and persistent rumour mill eventually confirms itself. Those who remained loyal to MorphoSys despite heavy selling last fall have now made a profit of over 300%. If we turn the analytical magnifying glass on the sector, we can see that the speculative biotech stock market segment has started to move again since the challenging year 2023. Hopes of falling interest rates in the near future, along with several other M&A hopes, have led to steady inflows into listed bio-ETFs, resulting in fund managers having recently adjusted their weightings upwards. We analyze which stocks are currently making the loudest noise.

    Read

    Commented by André Will-Laudien on February 16th, 2024 | 07:00 CET

    MorphoSys and Cardiol Therapeutics in upward mode, while Bayer and Pfizer are in slow mode

    • Biotechnology
    • Pharma

    The biotech sector has made a very differentiated start to the new year. While the old favorites are barely moving, the second-line stocks MorphoSys and Cardiol Therapeutics are making a real splash. At Bayer, the bad news just won't go away, and despite a successful major takeover, Pfizer has not yet found its forward gear. After a rally of almost 15% in December, the Nasdaq Biotechnology Index (NBI) has taken a pause in the current year. Now, everyone is waiting for the first interest rate cut by central banks. Inflation is already falling, and the negative economic data for the Eurozone is increasing. The ECB would normally be in demand. What should investors urgently keep an eye on?

    Read

    Commented by Armin Schulz on February 12th, 2024 | 07:00 CET

    MorphoSys, Defence Therapeutics, Bayer - Biotech and Pharma suddenly back in focus

    • Biotechnology
    • Pharma

    Biotech ETFs have been on the rise since the end of October 2023. German biotech companies were able to raise more funds again last year. There are increasing signs that the tough times for investors in biotech and pharmaceutical companies are over. There is also growing activity on the takeover side. Most recently, the takeover bid from Novartis shifted the focus to companies in the healthcare sector. The Swiss pharmaceutical company wants to acquire MorphoSys for EUR 2.7 billion and thus fill up its oncology pipeline. We have selected three companies from the biotech and pharma sectors and examined their current situation.

    Read