Caution: New Corona wave ahead? BioNTech, Pfizer, Cardiol Therapeutics and MorphoSys on the performance test bench

BioNTech and Pfizer - Deliveries of the new vaccines are underway

Whether Omicron, Arcturus, Eris or Pirola - they are all proper names of the new coronavirus variants that the Robert Koch Institute continues to have actively on the radar. In October, the 7-day incidence was 17 COVID-19 cases per 100,000 inhabitants. Large sections of the population are not interested in this survey or anything to do with pandemics for the time being - they are waiting to see how things develop. That is because the masses have come to terms with the topic and do not want to have to think about new horror scenarios.

Of course, biotech companies are staying close to the action. As the "winners of the pandemic", they currently have billions in their bank accounts and are simply continuing to research and develop the familiar. On September 1, BioNTech and Pfizer received approval for their vaccine adapted to the coronavirus variant XBB.1.5. The subsequent variants are also covered by this vaccine. According to the Federal Ministry of Health, 11.7 million doses are already in stock at the central warehouse. So, business is already picking up again for the well-known protagonists.

A look at the shares of the vaccine manufacturers reveals the 52-week low of EUR 86.7 for BioNTech shares. Fundamentally, sales of around EUR 4.4 billion are expected for 2023, and the market capitalization of the debt-free company is EUR 21.4 billion, just above the cash level of EUR 17.7 billion. Pfizer's share price is also trading near its 5-year low, with a 2023 P/E ratio of 20 and a dividend yield of over 5%. The stock is historically cheap. The medium-term risk in both stocks is manageable.

Cardiol Therapeutics - The next buying wave ahead

Cardiol Therapeutics Inc. is a Canadian biotechnology company specializing in the research and clinical development of innovative therapies for the treatment of cardiovascular diseases. The Company's promising product candidate, CardiolRx™ (cannabidiol), is a pharmaceutically manufactured oral solution formulation developed specifically for use in heart disease.

Since the COVID-19 pandemic, the incidence of heart problems has skyrocketed. Cardiol Therapeutics is strategically moving in the right direction because the active ingredient formulation CardiolRx™ blocks the activation of the inflammasome signaling pathway, which is known to play a significant role in inflammation and fibrosis associated with myocarditis, pericarditis and heart failure.

Cardiol Therapeutics has now reported to have exceeded its 50% targeted patient enrollment for its Phase II open-label pilot study (MAvERIC-Pilot), investigating the safety, tolerability and efficacy of CardiolRx™ in patients with recurrent pericarditis. In addition to standard safety assessments, the study is designed to evaluate improvement in objective measures of this rare disease and, during an extension period, assess the feasibility of weaning concomitant background therapy, including corticosteroids, while taking CardiolRx™.

The performance of Cardiol's stock is quite enjoyable, with a 51% increase in just 12 months. While the Nasdaq Biotechnology Index is lagging with a good 5% gain, the Canadians can show a significant jump in performance. In addition, the Company still had CAD 44.9 million in cash as of June 30. A capital increase is, therefore, currently not necessary. The story continues!

MorphoSys - Cover, Cover, Cover

The short sellers of MorphoSys shares have probably made a real gamble. After the sell-off to EUR 12 in December 2022, the share price continued to head north in a volatile fashion. At its peak, 11.7% of the outstanding capital was sold short, a record figure for the German stock market landscape.

Now, however, the story is going the other way around, as MorphoSys is very much in the spotlight with its lead product, pelabresib. As the Munich-based company recently announced, detailed Phase III data from the MANIFEST-2 study of the myelofibrosis drug pelabresib will be presented in an oral presentation at the 65th annual meeting of the American Society of Hematology in San Diego on December 10. Initial results are expected to be released in the coming weeks leading up to the event, and groundbreaking results are anticipated.

The share is, therefore, red-hot and is rising upwards every day, causing short sellers to break out in a cold sweat. It has almost tripled from its low point, but the value began at EUR 127. So, the stock is being covered for all its worth. Yesterday, from a technical chart perspective, the EUR 30 mark was also breached, and the Q3 report is expected on November 15. Very speculative - but promising! Work with a stop-loss of around EUR 27.

The biotech sector is currently very indifferent. The high interest rates have pushed the industry index NBI down considerably. Only the companies that are performing well are able to rise at the moment. BioNTech and Pfizer are still on the sidelines from a technical perspective, while Cardiol Therapeutics and MorphoSys, in the view of momentum and trend investors, still hold the potential for further gains.