05. May 2020 | 08:33 CET
Evotec, Medigene, Memphasys - the right investment timing
The health sector has been in the focus of investors not only since the outbreak of the corona pandemic. The pursuit of a healthy and long life is the motivation for research and development around the globe. In addition to Europe and the USA, Australia as a continent is also a location for ideas and innovations. Investors usually always ask the same questions. How expensive and how long does it take to develop the drug or solution and how big is the market. The bigger the problem or need to be treated, the more lucrative it is.
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ISIN: AU000000MEM5 , DE0005664809 , DE000A1X3W00
Society in change
Memphasys from Australia has focused on the topic of artificial insemination for several years. The market is growing because more and more couples are putting their professional career first and want to create an economic framework before completing the overall picture of a family with offspring.
However, the probability of a successful pregnancy decreases for both men and women with increasing age. Therefore, more and more couples consult medical experts to have fertilization monitored.
Market launch already in 2020
The Memphasys approach is based on the biological separation of high-quality sperm from the man's seminal fluid in order to subsequently increase the chances of success of artificial insemination. The device called FELIX carries out the separation in a few minutes, which means that the overall effort of the treatment is reduced and comfort is increased.
The product is to be launched in various countries as early as the second half of 2020. The company's market capitalisation on its home stock exchange in Australia was most recently AUD 45.34 million at AUD 0.06. The shares of Memphasys are also traded in Frankfurt.
In search of antibodies
The share price of Evotec, based in Hamburg, has been able to recover in recent weeks and was last traded at the same level as before the spread of COVID-19. Before the corona pandemic, the share price peaked at over EUR 26.00 and then dropped to a low of below EUR 19.00.
At the current level of EUR 22.30, Evotec is valued at EUR 3.36 billion. The company is engaged in the search for corona antibodies and in this context, there is a chance for investors to profit from the current situation.
Waiting for the breakthrough
Investors are currently having little luck with the shares of Medigene from Martinsried, near Munich. In the past 12 months, the share price has more than halved from over EUR 8.80 to EUR 4.16. Following the outbreak of the corona pandemic, the value of the shares even dropped to below EUR 3.40.
The market capitalisation of Medigene currently totals EUR 106.33 million. The successful development of immune therapies for the treatment of cancer will remain the company's value driver in the future. Patience is required.