In the right place at the right time: BioNTech, Defence Therapeutics, Bayer

BioNTech: Orders from China beckon?

The BioNTech share has been the pandemic share par excellence for many months. But since last summer, when the share almost cracked the EUR 400 mark, the price has fallen to around EUR 156. The reason? The market is pricing in the fact that the virus is becoming endemic and that other variants may be even more harmless than Omicron currently is. Incidences are reaching record levels these days, and at the same time, the number of patients in intensive care units is rising only slightly. In addition, because of the high number of cases, those vaccinated invariably have more severe conditions. These factors fuel skepticism about vaccination, even though studies still indicate that the vaccine is protective, particularly against severe courses of the disease.

COVID-19 has by no means lost its terror, especially in Asia. In China, cities with millions of inhabitants are still regularly sealed off and in isolation. Experts believe that a booster with an mRNA vaccine, such as the one BioNTech is presenting, could solve some of China's problems. The previously used inactivated vaccines are considered less effective, necessitating the current zero-COVID strategy, which has placed significant burdens on the economy. BioNTech's stock has recovered recently but is still stuck in a downtrend. The next few days will determine where BioNTech is headed.

Defence Therapeutics: A patented multi-tool as a recipe for success

While the Mainz-based Company has celebrated successes with its COVID-19 vaccine, the efforts surrounding comparable vaccines at Defence Therapeutics have so far received little media attention. Nevertheless, the Company has great potential: Defence Therapeutics can be involved in various disease areas because of its platform approach. With its Accum™ active ingredient enhancer, it also has a kind of multi-tool on offer that has the potential to breathe new life into even failed biotech products. Only recently, Defence Research Director Moutih Rafei outlined the Company's perspective in an interview: "In the area of infectious diseases, we are working on vaccines against COVID-19 and the human papillomavirus (HPV). In late 2022 or early 2023, we want to start a Phase I trial around each of our breast and skin cancer activities."

The central technology in all Defence Therapeutics' activities is the Accum™ drug enhancer. The patented technology belongs to the so-called antibody-drug conjugates (ADC) on which many companies are conducting research. Defence Therapeutics has already collected promising data around its version and sees connecting factors in many areas: "Especially in Germany, people may be familiar with the history of CureVac, whose COVID-19 vaccine was unfortunately unsuccessful due to dosing issues. These companies are potential partners for us, precisely because we can solve problems with dosing effectively and without undesirable side effects," Rafei said, also citing potential collaborations around protein-based vaccines, in HPV vaccination or even in gene therapy. "I am convinced that our technology can give many projects the positive impetus they need," he said. The share is currently stabilizing around EUR 3. Because of the diverse projects and perspectives, biotech investors should keep an eye on the value. Defence Therapeutics could leverage additional potential thanks to collaborations with larger providers.

Bayer: A lot is coming together here

Bayer shares are currently enjoying great popularity. The Company combines its seed business with pharmaceutical activities. The two areas roughly balance each other out. Although the acquisition of Monsanto has weighed on Bayer for years, the business could slowly but surely prove promising - after all, Bayer is now a leader in agricultural chemicals. At a time when higher yields in the fields are essential, as there are shortages worldwide, Bayer is ideally positioned. The Company also has some exciting drugs in the pipeline, such as Kerendia for people with chronic kidney disease in combination with diabetes. Since the share recently rose to a new performance high, the stock is considered particularly dynamic. In the long-term chart, there is even potential to the upside.

While the BioNTech share has received a lot of advance praise in recent years and is correspondingly expensive, Bayer can be considered a latecomer. Nevertheless, a consolidation after the rally would also do the share good. Defence Therapeutics could also develop great potential: The technology is versatile and could become a cash cow. Moreover, the market has hardly priced in this potential yet.