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May 29th, 2024 | 07:00 CEST

Biotech stocks with a comeback! BioNTech, Evotec, Vidac Pharma

  • Biotechnology
  • Pharma
Photo credits: BioNTech SE

Avian flu has caused vaccine stocks such as BioNTech, Moderna and CureVac to soar in the past week; however, more is needed to ensure a sustainable comeback. BioNTech plans to achieve this with cancer drugs. In an interview with "Handelsblatt", BioNTech's CEO expressed his optimism about significantly reducing the mortality rate. The Mainz-based company plans to launch its first drugs on the market as early as 2026. Vidac Pharma is pursuing a revolutionary approach in the fight against cancer. The London-based biotech company has published promising study data and is being traded as a takeover candidate. And what about Evotec? The problem child of the current year has extended a partnership but continues to search for a trigger to drive its stock up.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: BIONTECH SE SPON. ADRS 1 | US09075V1026 , EVOTEC SE INH O.N. | DE0005664809 , VIDAC PHARMA HOLDING PLC | GB00BM9XQ619

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: CEO gives hope to cancer patients

    While revenues from the COVID-19 vaccine are falling, BioNTech CEO Ugur Sahin is giving hope to cancer patients. He believes that in just a few years, the number of cancer-related deaths can be significantly reduced. The key to this is the Company's mRNA technology. On this basis, the Mainz-based biotech company has built up an extensive research portfolio of medications against various types of cancer. In a recent interview with "Handelsblatt", he said: "Our goal is to see fewer and fewer patients dying from cancer. If the technology works, it could, in principle, be applicable to any cancer patient at significant risk of relapse." BioNTech, therefore, sees no reason why the mortality rate for certain types of cancer cannot be reduced to less than 5% with innovative follow-up therapies.

    BioNTech is still expecting numerous study results this year. A few months ago, the Company announced that it would launch its first cancer drug on the market in 2026. Research financing has been secured by billions in revenue from the sale of the COVID-19 vaccine in recent years. Even though revenues have shrunk significantly in the meantime, and BioNTech had to report a loss in the first quarter of 2024, the cash register is still full to bursting. This has allowed BioNTech to repeatedly buy interesting companies and technologies in recent years.

    Vidac Pharma: When will the turnaround come?

    Vidac Pharma has not yet broken out of its sideways movement, but this is likely only a matter of time. The London-based biotech company is making good progress in cancer research and has been traded as a takeover candidate, especially since Genmab's billion-dollar acquisition of ProfoundBio. Vidac Pharma's innovative approach has the potential to revolutionize cancer treatment. The Company is researching ways to halt the proliferation of cancer cells by reversing their abnormal metabolism.

    Vidac has made the most progress with its drug candidate VDA-1102, which is designed to combat mycosis fungoides - a cancer of the white blood cells known as lymphocytes. VDA-1102 has received approval for the second phase of the Phase 2a clinical trial. This phase of the trial is expected to last three to four months, and final results should, therefore, be published this year. Positive interim results were already reported in early 2024 based on 50% of subjects.

    The following figures show why biotech companies in the field of cancer research, in particular, are the focus of investors: According to estimates by the International Agency for Research on Cancer, around 20 million people worldwide are diagnosed with cancer every year - and the trend is still rising. In 2022, 9.7 million people died of cancer. Around 12 million are expected to die in 2030 and 18.5 million in 2050. Vaccines and effective drugs are, therefore, urgently needed.

    Evotec: Partnership extension fizzles out

    And what is the biotech problem child Evotec doing? The share has yet to be able to benefit from the sector's comeback. The share is trading at just over EUR 9, close to its multi-year low. There is currently no sign of a rebound or a jump above EUR 10.

    Yesterday, Evotec announced the extension of its partnership with the CHDI Foundation. For almost 20 years, Evotec has been working with the non-profit biomedical research organization to develop therapies that will significantly improve the lives of people affected by Huntington's disease. The partnership leverages Evotec's integrated neurology platform and broad expertise in CNS drug discovery and development and is one of the Company's largest strategic drug discovery alliances. Evotec CEO Dr Craig Johnstone: "We are delighted that CHDI recognizes the value of our long and highly collaborative relationship. We are particularly proud to be able to contribute to the fight against Huntington's disease together with our colleagues at CHDI. This underscores our shared commitment to finding new therapies for people affected by this devastating disease."

    The announcement did not impact Evotec's share price yesterday. Deutsche Bank provides the most recent analyst commentary. Last week, the experts confirmed their "Buy" recommendation and a price target of EUR 12.


    There is more movement in the biotech sector again. BioNTech remains a core investment. However, a sustained upward trend will require patience and positive study results. With a market capitalization of around EUR 10 million, Vidac Pharma is still in its infancy, but the share price potential could be correspondingly high if the upcoming study results are positive again. Evotec has lost a lot of confidence this year. Regaining this trust will take time.


    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.

    For this reason, there is 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.

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    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author



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