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June 22nd, 2022 | 13:01 CEST

Crisis investments? Pharmaceutical stocks in check: Bayer, XPhyto, Pfizer

  • Biotechnology
  • Pharma
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Many investors want solid foundations for their portfolios when the market is in turmoil. Pharmaceutical stocks have always been considered largely detached from the overall market - after all, our health is not subject to market cycles. We explain whether this assumption is correct and how investors can now invest in stocks from the sector, using three shares as examples.

time to read: 3 minutes | Author: Nico Popp
ISIN: BAYER AG NA O.N. | DE000BAY0017 , XPHYTO THERAPEUTICS | CA98421R1055 , PFIZER INC. DL-_05 | US7170811035

Table of contents:

    Bayer: Bucking the trend strongly

    Among pharmaceutical stocks, Bayer is a popular choice for investors. The reason: In addition to its health care business, Bayer has chemical and agricultural businesses. Recently, Bayer also won the fourth lawsuit surrounding the controversial crop protection agent glyphosate. As a result, the risk of further lawsuit cases is decreasing. In addition to crop protection products, Bayer also offers seeds, making it a bet on current shortages on the one hand and the growing world population on the other. Climate change also plays a role. The more challenging the situation becomes for farmers, the more likely they are to have to resort to new varieties that can also cope with heat and drought or are less susceptible to rotting in torrential rain.

    Slowly but surely, it is becoming clear that the then-controversial takeover of Monsanto by Bayer was not a mistake. In the meantime, it even seems to be succeeding in positioning itself positively around the once-controversial deal: A few weeks ago, Bayer joined the Zero Hunger Private Sector Pledge, committing EUR 160 million to the fight against global hunger. The stock has gained around 9% in the past three months, successfully bucking the current negative trend. In the medium term, the value could attack its pre-Corona high of EUR 77 - provided that the big crisis does not materialize.

    XPhyto: The share price falls, but the Company just keeps going

    XPhyto also has an exciting business. The Canadian biotech offers diagnostics against oral diseases and also has rapid COVID-19 tests in PCR quality in its portfolio. Other mainstays are active ingredient carriers. Examples include active ingredient patches or small active ingredient carriers that patients can place under their tongues. The advantage of such carriers lies in their increased effectiveness. If active ingredients work equally well in lower doses, this saves costs. Such an approach is particularly widespread in the field of generics. The third pillar of XPhyto's business involves researching psychoactive substances such as mescaline. In this way, the Company aims to combat depression - according to market researchers at Data Bridge, the market for drugs to combat depression is expected to be worth USD 14.3 billion by 2028. Although psychoactive substances are still frowned upon in Europe in particular, the market in the USA has been opening up for years. Among others, visionary Christian Angermayer is investing in psychoactive substances.

    However, if you look at XPhyto's share price, it is down 37% over three months. What has happened? While companies like Bayer can increase their sales and have a growing perspective, XPhyto is currently under pressure as a growth company. However, this does not detract from the operational progress: In May, the Company reported progress around a patch for treating Parkinson's disease. At issue is the effectiveness of the dosage form. Company representatives called the results "positive." Recently, Florian A. Sahr, an experienced pharmaceutical expert and project manager, joined the team. Sahr is considered an expert in transdermal and orally dissolvable dosage forms. With the latest developments, XPhyto is successfully advancing its bread-and-butter business. Investors with a weakness for growth stocks should keep an eye on the share - the business is evolving.

    Pfizer: The success of others

    Pfizer also continues to develop. It was recently announced that the pharmaceutical giant has acquired around 8% of the shares in the vaccine manufacturer Valneva. The aim is to drive forward the existing collaboration around the Lyme disease vaccine candidate VLA15. Although Valneva had recently weakened on the stock market, the investment is also seen as a vote of confidence in the biotech and pharmaceutical market - promising opportunities and up-and-coming products can be found even in companies whose share prices are tumbling. The cooperation with BioNTech has already had only positive effects for Pfizer, pushing the share price mightily during the pandemic. On a one-year horizon, the stock is up around 35%. Currently, Pfizer is in an exciting phase - if the value slips in the direction of EUR 40, the momentum could fade; above EUR 50, new momentum beckons.

    Size matters! This could be the conclusion for investors looking for crisis-proof investments in pharmaceutical stocks. Both Pfizer and Bayer have recently performed well on the market, bucking the trend. However, Pfizer's investment in Valneva shows that the market is not always right. Smaller stocks also hold potential, even if the prices do not necessarily reflect this. Stocks such as XPhyto have been severely punished. They are indeed considered speculative, but it cannot be ruled out that prominent players will also recognize the intrinsic value of these small and highly specialized companies.

    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on 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.

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    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author

    Related comments:

    Commented by Fabian Lorenz on June 23rd, 2022 | 11:35 CEST

    Takeover fantasy: +50% in Valneva shares, and what are BioNTech and Defence Therapeutics doing?

    • Biotechnology
    • Pharma

    Tension is rising in the biotech sector as the takeover merry-go-round spins faster and has now hit Valneva. Pfizer's entry caused the stock to explode 50% in three trading days. Earlier, Pfizer had announced it would acquire migraine specialist Biohaven for USD 11.6 billion. Other pharmaceutical giants are also active: Halozyme wants to swallow Antares Pharma, a specialist in urology and endocrinology, for USD 960 million. The acquisition of Sierra Oncology is costing GlaxoSmithKline around USD 1.9 billion. Like Valneva, Defence Therapeutics is about to start important trials and could attract a major partner. A takeover of BioNTech is unlikely, but the flagship German biotech should also benefit from improved sentiment in the industry. The coming week should be operationally exciting for shareholders.


    Commented by Nico Popp on June 22nd, 2022 | 12:32 CEST

    Market-independent returns? This is how it's done! Valneva, NervGen, BioNTech

    • Biotechnology

    When the stock market is in high gear, it is time for cool heads. Even if many managers are suspected of only having an eye on the next few quarters, there are still some decisions with far-reaching consequences, especially in the case of takeovers and mergers. Most recently, Pfizer acquired a stake in the vaccine manufacturer Valneva. The share price performance to date did not suggest such a step. Here is why the decision could still pay off for shareholders and what signal effect the deal will have.


    Commented by Armin Schulz on June 17th, 2022 | 10:45 CEST

    BioNTech, Defence Therapeutics, Formycon - Biotech stocks with a lot of future potential

    • Biotechnology

    A look at the NASDAQ Biotechnology Index shows that the big hype on biotech companies seems to be over for now. Since September 2021, the index has been falling, repeatedly marking new lows. However, this decline can also be seen as an opportunity because the long-term prospects for the industry are good. People are getting older, and with age comes the diseases that want to be fought. Today we look at three companies with a lot of potential for the future.