16. August 2021 | 13:27 CET
BioNTech, XPhyto Therapeutics, Siemens Healthineers - Corona has triggered a boom
While many companies have suffered greatly from the Corona pandemic, there are also a number of winners. First and foremost, vaccine manufacturers but also diagnostics companies experienced substantial growth rates in sales. Irrespective of Corona, it is increasingly crucial for the healthcare sector to push ahead with digitization, especially in diagnostics. Here, digitization offers the opportunity to significantly increase the quality and speed of diagnoses through artificial intelligence. Time, in particular, is an important factor here. Today, we take a closer look at three beneficiaries of the Corona Crisis.
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ISIN: BIONTECH SE SPON. ADRS 1 | US09075V1026 , XPHYTO THERAPEUTICS | CA98421R1055 , SIEMENS HEALTH.AG NA O.N. | DE000SHL1006
BioNTech - With strong figures
BioNTech's second-quarter figures, published on August 9, were very impressive. Compared to the previous year, sales were up by more than 13,000%, or EUR 5.3 billion, and the quarterly profit of EUR 2.8 billion was also huge. In total, more than 1 billion vaccine doses were delivered. This number exceeded all analysts' forecasts. Due to the Delta variant, some vaccines will probably have to be refreshed, so sales should remain high for the time being.
The bubbling profits have already financed research and development work in new areas of application such as malaria and, above all, cancer. The new mRNA technology fires the imagination and fuels hopes that new cures will soon be found in these areas. According to Company CEO Uğur Şahin, BioNTech can now work on several projects simultaneously. The vaccine against malaria is to be tested in a clinical trial by the end of 2022.
The Company's share price resembled a flagpole until August 10, when the price went up to EUR 395. Then there was news that the EMA (European Medicines Agency) was investigating various suspected side effects of BioNTech's vaccine. As a result, the share price dropped to EUR 303.60. Last Friday, an inside day formed. Above EUR 332, it looks bullish - below EUR 303 bearish.
XPhyto Therapeutics - Fast PCR test sale started
The Canadian Company XPhyto Therapeutics is a biotechnology company that focuses on the German and European markets. Its three main business areas are diagnostics, drug delivery and drug development. The Company acquires other companies with therapeutic and diagnostic products in late-stage development and then develops them to market.
The Company's primary product is a Corona PCR test developed in collaboration with 3a-diagnostics GmbH. The unique selling point of the product is the speed with which the result is available. As removing RNA from the sample is no longer necessary, the result is available within 20 minutes. The product has already been approved throughout the EU, and sales started at the end of May. On July 20, the Company announced that it has the opportunity to acquire 3a-diagnostics GmbH completely. The diagnostics development pipeline still includes real-time biosensors for infectious diseases.
In drug delivery, the Company owns a platform technology to deliver generic and active pharmaceutical ingredients to patients via patch or orally. Drug development owns four neurological therapeutics that are in late-stage clinical development. In addition, there are two psychedelic drugs in development.
Following the announcement of the acquisition agreement with 3a-diagnostics, XPhyto's stock has exited its downtrend. The upcoming quarterly figures can be expected with excitement, as it will then be possible to see how well the market receives the Corona PCR test. If the start is successful, there is a lot of upside potential here. The share belongs on the watch list.
Siemens Healthineers - Another forecast increase
On July 30, Siemens Healthineers presented its figures for the last quarter and raised its full-year guidance again. Compared to the previous year, sales increased by 38.9%. The main revenue driver was the Covid-19 antigen rapid test, with sales up 103.4%. Adjusted EBIT doubled to EUR 945 million, as did free cash flow to EUR 852 million. Based on the figures, management raised its expectations for sales and earnings.
This increase is a bit surprising, as CFO Schmitz believes that sales of rapid antigen tests have seen their high, as demand is likely to decline with the discontinuation of free citizen testing in October. But with business in imaging diagnostics now higher than before Corona and the expectation the trend will continue, targets are likely to be met.
The numbers have given the stock a boost, with one all-time high following the next. The prospect of inclusion in the new DAX index provides additional fantasy. The Company is also currently carrying out its share buyback program, and the share price continues to rise. Analysts are also very optimistic. JPMorgan, Deutsche Bank, Credit Suisse and others see further potential in the share.
Biotech and pharmaceutical companies have profited significantly from the Corona pandemic. Unfortunately, since further mutations cannot be ruled out and are even likely, the market will continue to perform strongly. BioNTech is hot for the time being, and one should wait for the federal government's plans. XPhyto is currently by far the most favorably valued stock. Here, one should keep an eye on the upcoming quarterly figures. Siemens Healthineers is well positioned even without Corona, as it is the Company that best covers the field of imaging diagnostics.