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March 25th, 2021 | 08:19 CET

Evotec, PsyBio Therapeutics, MorphoSys - Milestone in Development!

  • Biotechnology
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About 350 million people worldwide live with depression. According to estimates by the World Health Organization (WHO), only one in four sufferers receives adequate treatment. With all its limitations, the Corona Crisis has caused the number of unreported cases to skyrocket exorbitantly, making depression the most significant cause of illness above all. Apart from the prescription of antidepressants, which usually have strong side effects, there are few alternative treatment methods. But now, young biotech companies are stepping up to revolutionize the field of "mental health."

time to read: 3 minutes | Author: Stefan Feulner
ISIN: DE0005664809 , CA6936971044 , DE0006632003

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


    Long history

    Currently, "magic mushrooms" are one of the hippest topics on the stock markets. But the history of mushrooms containing psychedelic substances goes back thousands of years. The Aztecs of Mexico already used the psilocybin-containing mushrooms for ritual and profane purposes as intoxicating drugs. But it was not until 1957 that Albert Hofmann, who had already discovered LSD, was the first to isolate psilocybin and psilocin as the active substances of the mushroom. The chemical structures of the main active substances are closely related to LSD, so they also produce similar psychoactive effects. In the 1960s, synthetically produced psilocybin was marketed under the name Indocybin® by the pharmaceutical Company Sandoz for experimental and psychotherapeutic purposes. The increasing use as a narcotic drug, especially by representatives of the hippie movement, was cited as one of the reasons for the prohibition of LSD and other psychedelics in the early 1970s.

    Revolutionary approaches

    For many years, there has been an increasing number of studies with volunteers to investigate the possible therapeutic effects of drugs, such as psilocybin or LSD. These studies are looking at the use of psilocybin and other hallucinogens to treat a range of otherwise untreatable mental disorders, such as chronic depression, post-traumatic stress disorder, and drug or alcohol addiction. Now, PsyBio Therapeutics aims to bring a unique drug to market. In cooperation with the University of Miami's Department of Psychology, the Canadians are working with other related active ingredients, investigating their interactions, and researching substances that work even better than pure psilocybin. This collaboration has already yielded several patents.

    Global leader

    According to PsyBio CEO Evan Levine, the Company is in pole position regarding research and patent prosecution in the industry. The Company also has a unique selling proposition, which should significantly impact margins in the future. The Company recently filed a process patent that can produce psilocybin using bacteria significantly cheaper, faster and more environmentally friendly than any other published method.

    Earlier this week, PsyBio was able to announce another important step. It was able to start developing its second product candidate, a proprietary biosynthetic formulation of norbaeocystin, in collaboration with the Advanced Biofuels and Bioproducts Process Development Unit. Norbaeocystin is an analog of psilocybin and is not a controlled substance. The Company has begun Phase 1 of this process, including the technical transfer of analytical chemistry to identify capture methods for fermentation products as well as key feedstock and metabolites. PsyBio shares were listed on the Canadian Stock Exchange in late February and are also tradable in Frankfurt. The market capitalization is around CAD 40 million. A bet on the future.

    You can read the full interview with PsyBio Therapeutics CEO Evan Levine here: Interview Evan Levine

    Promising cooperation

    The German biotech Company Evotec has announced the successful conclusion of a partnership. The Japanese pharmaceutical Company Takeda Pharmaceutical Company Limited may use Evotec's RNA platform to identify promising RNA sequences to target small molecule ligands that can be further developed into potential first-in-class therapeutics. In return, Evotec will collect research payments and can expect to receive early-stage, preclinical, clinical and commercial milestone payments of up to the equivalent of EUR 134 m per program. In addition, Evotec is entitled to staggered royalties on the products' net sales resulting from this collaboration. Chart-wise, the stock is facing a decision at the moment. A break of the EUR 30 support would generate a sell signal. We advise investors to wait and see.

    Negative signs

    The MorphoSys share has already broken the support. Since its high at the start of the year, the stock has corrected by just under 50% and was quoted at EUR 75 yesterday. The correction is likely to extend to the next target point at around EUR 70. We currently advise against an investment. Also, fundamentally, we do not see MorphoSys as a buy candidate at the moment. The weak outlook for the full year 2021 still causes uncertainty.

    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses 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 André Will-Laudien on February 20th, 2024 | 07:30 CET

    Takeover fever in the biotech sector! Will MorphoSys now be followed by Defence Therapeutics, Evotec and Bayer?

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    It has happened: Novartis is bidding for MorphoSys. Once again, a long-lasting and persistent rumour mill eventually confirms itself. Those who remained loyal to MorphoSys despite heavy selling last fall have now made a profit of over 300%. If we turn the analytical magnifying glass on the sector, we can see that the speculative biotech stock market segment has started to move again since the challenging year 2023. Hopes of falling interest rates in the near future, along with several other M&A hopes, have led to steady inflows into listed bio-ETFs, resulting in fund managers having recently adjusted their weightings upwards. We analyze which stocks are currently making the loudest noise.


    Commented by André Will-Laudien on February 16th, 2024 | 07:00 CET

    MorphoSys and Cardiol Therapeutics in upward mode, while Bayer and Pfizer are in slow mode

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    The biotech sector has made a very differentiated start to the new year. While the old favorites are barely moving, the second-line stocks MorphoSys and Cardiol Therapeutics are making a real splash. At Bayer, the bad news just won't go away, and despite a successful major takeover, Pfizer has not yet found its forward gear. After a rally of almost 15% in December, the Nasdaq Biotechnology Index (NBI) has taken a pause in the current year. Now, everyone is waiting for the first interest rate cut by central banks. Inflation is already falling, and the negative economic data for the Eurozone is increasing. The ECB would normally be in demand. What should investors urgently keep an eye on?


    Commented by Armin Schulz on February 12th, 2024 | 07:00 CET

    MorphoSys, Defence Therapeutics, Bayer - Biotech and Pharma suddenly back in focus

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    Biotech ETFs have been on the rise since the end of October 2023. German biotech companies were able to raise more funds again last year. There are increasing signs that the tough times for investors in biotech and pharmaceutical companies are over. There is also growing activity on the takeover side. Most recently, the takeover bid from Novartis shifted the focus to companies in the healthcare sector. The Swiss pharmaceutical company wants to acquire MorphoSys for EUR 2.7 billion and thus fill up its oncology pipeline. We have selected three companies from the biotech and pharma sectors and examined their current situation.