December 8th, 2022 | 09:25 CET
Core One Labs, BioNxt Solutions, Moderna - Takeover battle in a billion-dollar market
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"[...] 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.
Core One Labs - Relationship Status: It's complicated
In love, engaged, married, or rather single? For once, the life sciences research and development company, which focuses on bringing psychedelic medicines to market through the development and production of psychedelic compounds, the advancement of psychedelic-assisted treatments and the integration of new drug delivery technologies, is preparing for a possible marriage to a potential acquisition candidate.
As such, Core Onle Labs is actively seeking investment and potential acquisition opportunities by strategic psychedelics or pharmaceutical companies. Once a suitable offer is received and an agreement is reached, the Company will inform shareholders and the market and provide all the necessary transaction details. According to management, an acquisition could represent a unique opportunity for Core One and its shareholders to enter new markets and product lines and for Core One to benefit from the strengths and synergies of a buyer.
Despite a potential merger, the Canadians aim to turn the Company into one of the leading manufacturers of high-quality psychedelic medicines. As such, the first production run of the drug-grade psilocybin in a GMP-compliant facility is planned for January 2023 to test the Company's commercial production capabilities. Following a successful commercial production trial, the Company intends to advance toward full commercial production of its API-grade psilocybin and other psychedelic compounds. The market capitalization of Core One Labs is currently CAD 35.63 million, with the stock price losing approximately 88% since the beginning of the 2021 trading year.
BioNxt Solutions - Strong growth in a broad portfolio
At CAD 41.89 million, a market capitalization that is only marginally higher puts BioNxt Solutions, which recently traded as XPhyto, on the stock market scales. This should also put it in the sights of the big players. The big difference to Core One Labs is that the Canadians have a much broader and diversified portfolio. The accelerator, which has subsidiaries in Germany, focuses on developing the next generation of drug formulations, diagnostics and active pharmaceutical ingredients. Several projects are approaching commercialization.
The Canadians reported notable successes in the fourth business area, the fast-growing market for psilocybin research. The global growth of the market for psychedelic drugs is gigantic. By 2029, this is expected to grow at an annual rate of 13.3% to reach a market volume of CAD 6.4 billion. BioNxt Solutions has filed a patent application for its collection of novel psychedelic compounds. The substance database can thus be targeted for the treatment of neuropsychiatric, neurodegenerative and neuroinflammatory disorders, including depression, tobacco, opiate and cocaine addiction, or alcoholism, among others. With 350 million people worldwide suffering from depression alone, one can only imagine the enormous potential of preparations successfully brought to market.
The share, traded not only in Toronto but also in Frankfurt, is currently working on bottoming out. If the EUR 0.40 mark were to be exceeded, a striking buy signal would be formed, providing the stock with a short-term upside potential of 50% to the next resistance level at EUR 0.60. Currently, a non-brokered private placement of bonds is underway. The size was increased from CAD 2.6 million to now CAD 2.8 million.
Pfizer and BioNTech vs Moderna
Vaccine readiness is waning, and Corona is moving increasingly out of the Company's mind. Now a tangible dispute has erupted between the mRNA vaccine makers. Back in August, US pharmaceutical giant Moderna sued Mainz-based BioNTech for patent infringement of its technology, which Moderna said it had developed before the pandemic. A similar lawsuit against Pfizer and BioNTech was also filed in Germany. Now, however, came the return fire.
The partners filed suit against their US adversary in a federal court in Boston. The Mainz-based company is seeking a counterclaim in the US to deny allegations of patent infringement and to establish that patents have not been infringed.
The patent disputes have little impact on the positive development of the Moderna share price. Thus, after a breakout above the resistance at USD 188, the next hurdle would be found at around USD 250. RSI and MACD are close to further buy signals and should provide a tailwind.
The corrections in the biotech sector make smaller companies with a full research pipeline attractive takeover targets. Core One Labs is already on a shopping spree, while the more broadly based BioNxt Solutions is on the verge of commercialization for several compounds. Moderna has established its bottom and should form a buy signal shortly.
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.
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