June 22nd, 2022 | 12:32 CEST
Market-independent returns? This is how it's done! Valneva, NervGen, BioNTech
When the stock market is in high gear, it is time for cool heads. Even if many managers are suspected of only having an eye on the next few quarters, there are still some decisions with far-reaching consequences, especially in the case of takeovers and mergers. Most recently, Pfizer acquired a stake in the vaccine manufacturer Valneva. The share price performance to date did not suggest such a step. Here is why the decision could still pay off for shareholders and what signal effect the deal will have.
time to read: 3 minutes | Author: Nico Popp
ISIN: VALNEVA SE EO -_15 | FR0004056851 , NERVGEN PHARMA CORP | CA64082X2032 , BIONTECH SE SPON. ADRS 1 | US09075V1026
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Author
Nico Popp
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
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Valneva: How far will the recovery go?
The Valneva share has not performed well this year and lost around 40% over three months. Recently, however, the entry of Pfizer caused a small price fireworks. The pharmaceutical giant secured a stake of about 8% in Valneva and intends to push its Lyme vaccine candidate VLA15 in particular. Analysts at Bryan Garnier believe a complete takeover is even possible. The experts at Oddo BHF see the situation differently. According to them, the Corona vaccine situation dominates the equity story around Valneva.
However, there is also positive news around the Corona vaccine. The European Medicines Agency (EMA) has accepted the marketing authorization application for the VLA2001 Corona vaccine. Nevertheless, rumors are weighing on the market that the EU's letter of intent to acquire the vaccine may be cancelled. Looking at the recent share price rally in the light of the month-long sell-off, Valneva may now be entering a bear market rally. It will probably take some time before the share enters favourable waters.
NervGen: MS and Alzheimer's in its sights
The NervGen share has also not performed well in recent months. Unlike Valneva, however, it is not a vaccine that no one seems to want. NervGen is researching an active ingredient capable of activating the body's self-healing powers in cases of nerve damage. In trials with paraplegic mice, the active ingredient has already achieved impressive results. In addition to paralysis, NervGen is also targeting multiple sclerosis and Alzheimer's disease, addressing conditions that greatly affect the quality of life of both young and older people. Each advance alone would have blockbuster potential from the market's perspective. But why did the stock lose 25% over the past three months? NervGen is a growth company and is currently advancing its research. Such stocks have been particularly punished by the market recently. Some of the share price losses are therefore not attributable to events at the Company at all. In fact, NervGen has recently only been reporting on the status of its day-to-day business.
NervGen CEO Bill Radvak recently outlined the Company's long-term outlook in an interview: "We intend to start our clinical trial with both recently injured and chronically injured patients. Studying a drug in patients who have been injured for more than a year is rare, but we have remarkable data suggesting that our drug can successfully help restore function in these patients too. We expect to see the results of these studies as early as next year, which is very exciting". NervGen is already seeking a listing on NASDAQ this year to broaden its investor base. Such a move has already given comparable companies a tailwind. Even if the market environment is currently not the friendliest, NervGen offers a promising growth perspective with its revolutionary approach. Should even a partial success be possible in the fight against MS or Alzheimer's, the share should also offer opportunities detached from the overall market.
BioNTech: Overall market burdens even the industry leader
BioNTech shows that even big names are currently floundering in no man's land. The Corona vaccine pioneer is well-positioned: The summer wave is shifting the focus back to the pandemic. In the fall, new vaccines are ready for the market that should also help against the new variants. In addition, the BioNTech team has emphasized that it wants to take off in the future around cancer and other diseases. This example shows that many promising plans are falling behind in the face of the overall market.
Especially in difficult times on the stock market, investors with foresight can seize opportunities. Pfizer's entry into Valneva gives investors the signal that the development of promising vaccines and active ingredients will continue regardless of the day-to-day market noise. NervGen and BioNTech are also pushing ahead with their ambitious plans. If breakthroughs succeed, new potential should emerge.
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.
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