September 27th, 2022 | 11:45 CEST
Evotec, Defence Therapeutics, Formycon - Biotech opportunity!
Table of contents:
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 ii-forum.com.
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
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