October 17th, 2022 | 12:21 CEST
Defence Therapeutics, Commerzbank - Like BioNTech in March 2020?
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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.
BioNTech: Between vaccine strategy and cancer fantasy
As share prices worldwide plummeted in March 2020, the strategists behind BioNTech were working on the Company's future. Despite the general doom and gloom, a huge opportunity opened up for BioNTech. The mRNA technology they had long been researching was suddenly in demand like never before. The desire for fast and effective vaccines was great. In the US, then-US President Donald Trump made possibly the best decision of his time in office: he declared the search for a vaccine the country's most important mission - no matter what the cost. Because of this support, Pfizer and BioNTech were able to develop their Corona vaccine quickly. Where the typical process involves pausing and gradually injecting capital depending on details, Pfizer and BioNTech have been able to draw on their full resources.
In Germany, another vaccination campaign is currently underway. People over 60 and those with previous illnesses can get their 4th shot. Vaccines have now been developed expressly for the Omicron variant. This new demand for vaccines should have a positive impact on BioNTech. However, the great vaccination hype is over. Shareholders can still rejoice: BioNTech recently opened a subsidiary in Australia, where it plans to conduct more research into vaccines against cancer. The cash flow from the Corona vaccines will therefore be invested for growth. The share has stabilized in recent months and could rise again in the medium term. However, BioNTech is no longer an insider tip.
Defence Therapeutics facing months of truth
The situation is quite different for the Canadian company Defence Therapeutics. The biotech company has a broad range of active ingredients and active ingredient enhancers that can be used in various ways. They recently announced a clinical trial for the active ingredient AccuTOX™ to fight lung cancer. What is unique about the pre-clinical study is that the compound will be administered intranasally to then act in the lungs. The active ingredient AccuTOX™, for which Defence Therapeutics has filed a patent application, is an offshoot of the Accum™ technology, which has been known for some time. In short, the aim is to channel various active ingredients more effectively into the cell nucleus and thus achieve greater effects. Defence Therapeutics is using this process to research vaccines against various cancer types, including skin and cervical cancer. Clinical trials are scheduled to start in early 2023.
Since Accum™ can be used very flexibly as a drug booster, it is also conceivable that the technology will help other active ingredients that have already been discarded in clinical trials to make a comeback. The first phase of clinical trials is all about the safety of active ingredients. If this is not the case, the trial fails. If the dose can be drastically reduced thanks to active ingredient boosters, previously failed projects could be given a new lease of life. Investors can also recognize "fresh blood" when they look at the performance of the Defence Therapeutics share. The value has recovered recently but is still cheap. It will be crucial for the Company to be able to implement its plans. Given the versatility of the technology and the numerous opportunities, knowledgeable investors should already have the Company on their radar. Defence Therapeutics is currently comparable to BioNTech before COVID-19 was declared a pandemic - only industry insiders have the value on their radar. However, this should change as soon as scientific perspectives turn into concrete market opportunities. The stock is speculative but also about 80% cheaper than a year ago. In addition, operational progress is imminent. Defence Therapeutics is anything but uninteresting!
Commerzbank: Interest rate turnaround positive, real estate market negative!
The same applies to the Commerzbank share. The Frankfurt share price has remained stable in recent weeks despite the challenging market environment. As we recall, at times, there was even talk of a new banking quake. However, these speculations have left the yellow bank cold. However, trouble is looming in the real estate business. As Savings Bank President Helmut Schleweis told the Handelsblatt, many real estate projects in the planning stage are currently being put on hold again. Also, many private prospective customers simply could not afford real estate any longer - the mortgage interest multiplied in 2022. At the same time, inflation and a shortage of materials are weighing on construction and renovation. Commerzbank recently benefited from the bear market rally. However, many construction sites still remain. Between EUR 8.20 and EUR 8.40, the share must show what it can do. If the breakout above this level fails, it can also go down again.
Even though many banks have been eagerly awaiting the turnaround in interest rates, higher interest rates are anything but a special boom. The distortions in the current situation are too great. On the other hand, stocks that can do well in any market are BioNTech or even Defence Therapeutics. Whoever develops the next blockbuster is guaranteed to leave inflation and crisis behind. While BioNTech is already an old hand in the business, Defence Therapeutics still has the aura of a newcomer. In addition, there are the many projects and the opportunity for licensing income if, for example, the patented active ingredient enhancer were to be made available to other companies. The coming months are likely to be exciting.
Conflict of interest
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