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September 27th, 2022 | 11:45 CEST

Evotec, Defence Therapeutics, Formycon - Biotech opportunity!

  • Biotechnology
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Due to the stricter monetary policy of the central banks and inflation concerns, the capital-intensive biotech sector is also suffering. The NASDAQ Biotechnology Index has lost almost a quarter of its value since the beginning of the stock market year. In addition, the number of companies trading even below their cash levels is higher than ever. At the same time, as can be seen with vaccine manufacturers, the industry is becoming increasingly important in everyday life. Especially in cancer research, some companies have the opportunity to multiply in the coming years based on their product pipeline.

time to read: 4 minutes | Author: Stefan Feulner

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


    Defence Therapeutics - Groundbreaking results

    Looking purely at the share chart of the Vancouver, Canada-based company, it is difficult to conclude that groundbreaking research successes have been achieved in recent months with the help of the Company's ACCUM technology. The Defence Therapeutics share has dropped by an incredible 78% to CAD 1.61 since it peaked at CAD 8.15 in September last year. The market capitalization amounts to CAD 59.22 million. Currently, the course is working on a bottom formation. Fundamentally, there should be little in the way of a possible increase in the price level.

    The core of the Defence Therapeutics platform is the ACCUM technology, which enables precise transport of vaccine antigens or ADCs in the intact form to target cells with fewer side effects. As a result, improved efficiency and efficacy against many diseases, such as cancer and infections, can be achieved. Market researchers at Emergen Research forecast that the antibody-drug conjugate (ADC) market will reach a total of USD 20.01 billion by 2028, growing at a high rate of 26% per year.

    Recently, the Canadians came up with a breakthrough result to fight lymphoma. Here, the novel vaccine using ACCUM A1-reprogrammed mesenchymal stromal cells was able to cure 80% of the animals with existing lymphomas participating in the study. Here, the platform technology continues to demonstrate positive therapeutic results and application versatility. Through this vaccine technology and ACCUM, Defence Therapeutics can design and develop a variety of vaccine products that can be targeted against multiple solid and hematologic cancer indications after further research. Currently, the Company is actively working on the CMC protocol to produce its A1 MSC vaccine in preparation for a Phase I trial in patients with melanoma.

    Dr Moutih Rafei, VP R&D and Director of Defence Therapeutics, will provide a deeper insight into the business model today at 1:30 pm CEST at the 4th International Investment Forum. Registration for the virtual event is free

    Evotec - Order from the highest authority

    The chart performance of the Hamburg-based company in the field of pharmaceutical drug discovery coincides with the price decline of most shares in the biotech sector. After a sharp upswing from the Corona low in March 2020 at EUR 17.17 to a peak of EUR 45.83, the share price is threatening to slip below the low of 2020. A downward breakout is likely to trigger further sell orders. The next prominent support zone would then be the area around EUR 14.70.

    Even an order from the US Department of Defense could not stop the downward run. According to the Company's Hamburg headquarters, the US subsidiary Just-Evotec Biologics is to receive up to EUR 49.9 million for the rapid development of drug prototypes based on monoclonal antibodies against the plague. "It is a clear validation for us of the efficiency and speed we can deliver to our partners through our leading scientific, technological and technical offering," said Craig Johnstone, Evotec's chief operating officer of the US military order.

    Formycon - Encouraging development

    The chart picture of the leading and independent developer of high-quality biopharmaceutical follow-on products, so-called biosimilars, looks much brighter. The share price performance since the Corona low is a whopping 380%. After peaking at EUR 87.90, Formycon shares consolidated at a high level at around EUR 70. An important stop in case of a break of this support zone would be the rising 200-day line at EUR 65.50.

    Also, from the news front, the relative strength is regularly supported by good news flow. Details of a previously unpublished project in the development pipeline have now been announced. FYB206 is a biosimilar candidate for Keytruda (pembrolizumab), which is in an advanced preclinical development phase. In addition to biosimilars in the field of ophthalmology, immunology and two other, as yet unpublished biosimilar candidates, Formycon is expanding its range of indications with FYB206 to include the rapidly growing field of immuno-oncology.

    The active ingredient pembrolizumab is a humanized monoclonal antibody that belongs to the immune checkpoint inhibitors and is used to treat a variety of tumors. It helps the immune system to activate the body's own cellular anti-tumor immune response and kill melanoma cells, for example.

    "Cancer is one of the most common and serious diseases of our time. Effective cancer treatment costs have become a major challenge for global healthcare systems. With the development of the Keytruda biosimilar, we are pursuing the goal of facilitating access to this important drug for patients worldwide, while at the same time providing much needed savings for the healthcare system," commented Dr Stefan Glombitza, CEO of Formycon AG.

    Due to interest rate hikes and further uncertainties regarding rampant inflation, stocks in the capital-intensive biotechnology sector are suffering. However, the sell-off offers a variety of opportunities to participate in promising research projects in the long term. Defence Therapeutics and Formycon were able to report groundbreaking results in cancer research. Evotec repeatedly received the trust of the US government.

    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

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author

    Related comments:

    Commented by Stefan Feulner on April 16th, 2024 | 07:40 CEST

    Formycon, Defence Therapeutics, Morphosys - Significant movement in the biotech sector

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    At the moment, investors are focusing on gold and Bitcoin in addition to the most important indices, like the DAX and Dow Jones. Meanwhile, the biotechnology sector is barely mentioned in the local newspapers. However, the market is on the move, and the wave of takeovers continues unabated. Recently, the Danish pharmaceutical company Genmab announced it was acquiring the private biotech company ProfoundBio for USD 1.8 billion in cash. The acquisition is intended to help deepen the cancer pipeline with next-generation antibody-drug conjugate therapies. Big Pharma is likely to make further acquisitions in this area in the near future.


    Commented by Juliane Zielonka on April 12th, 2024 | 07:00 CEST

    AI in healthcare with Evotec, Defence Therapeutics, Bayer: Revolutionary advances and medical breakthroughs

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    Artificial intelligence (AI) is gaining momentum in the healthcare sector. AI-based systems can use medical databases to save valuable time in research, enabling companies like Defence Therapeutics to go to market faster than others. In oncology research, the Canadian company has just achieved a breakthrough that gives hope to many cancer patients. AI-assisted diagnoses allow diseases to be detected earlier and treated more effectively, leading to improved quality of life for patients. Precision medicine in strong partnership networks is Evotec's focus. The share is particularly popular with hedge fund managers. Analyzing medical images and data in real-time and detecting even the smallest deviations or anomalies is the top priority for Bayer AG in collaboration with Google Cloud. Which companies are convincing investors the most?


    Commented by Fabian Lorenz on April 10th, 2024 | 07:00 CEST

    BASF and Cardiol Therapeutics recommended to buy! TUI share with momentum!

    • Biotechnology
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    BASF shares have gained over 30% within six months. But is the rally in BASF shares slowly running out of steam? The fact that the share did not rise sharply yesterday despite a significant price target increase suggests this is the case. Many experts see little potential for further price increases. The situation is different for the biotech company Cardiol Therapeutics. The analysts at Canaccord believe that the shares of the specialist in cardiovascular diseases could perform by around 200%. Financing is secured until 2026, and important study data is due in the current quarter. The TUI share has been on a roll for several months now. Will the share continue to rise with the increase in temperatures? Management is certainly optimistic about the future.