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May 16th, 2023 | 09:30 CEST

Morphosys, Defence Therapeutics, Evotec - A lot of movement in the biotech sector

  • Biotechnology
  • Pharma
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The biotech sector is on the move. On the one hand, the industry has seen an increase in mergers and acquisitions in recent months. The pharmaceutical giant Pfizer, for example, recently took over Seagan for USD 43 billion. Other companies are likely to follow suit. In addition, many companies were able to break away from their lows of the past months and have further upside potential.

time to read: 3 minutes | Author: Stefan Feulner

Table of contents:

    Defence Therapeutics - Consistently good news flow

    The Canadian biopharmaceutical company, which is using its patented Accum™ platform technology to develop the next generation of vaccines and ADC products, is going from strength to strength. The technology allows precise transport of vaccine antigens or ADCs in the intact form to target cells. Based on Accum™, Defence Therapeutics has already developed plans around therapeutic vaccines against cancer, a vaccine against infections with the HP virus, which also has potential for acute therapeutic use, and the chemotherapeutic AccuTOX.

    In cooperation with the clinical team at the City of Hope hospital, one of the largest academic medical centers in the United States, Defence Therapeutics has successfully completed the preclinical efficacy study for AccuTOX, its most advanced research and development program. This milestone opens the door for submitting IND (Investigational New Drug) documents for a Phase I clinical trial. The compound has been shown to prevent tumor growth in animal models, including T-cell lymphoma, breast cancer and malignant melanoma. The focus of the completed preclinical study was on minimizing the dosage of AccuTOX on the one hand and on combining it with anti-PD-1 as well as anti-LAG3 on the other, which is comparable to the use of Opdualag, a combination drug from the company BMS. This drug is currently administered to cancer patients at the City of Hope.

    The results were convincing. It was possible to lower the dosage. In addition, with regard to combination therapy, it was determined that AccuTOX could be easily adapted with surface proteins or any antibodies currently being tested in advanced clinical trials. Through this milestone, Defence Therapeutics and City of Hope intend to complete their Investigational New Drug application process as planned.

    In addition to AccuTOX, both technology and other developments associated with Accum™ are making significant progress. Further news is expected soon, according to management. The Company is broadly diversified and highly scalable due to its platform technology. The market capitalization is currently CAD 118.65 million. The wave of acquisitions in the biotechnology sector has been going on for months. Most recently, the pharmaceutical giant Pfizer acquired Seagen, a company that can be classified in the peer group of Defence Therapeutics. The takeover price was USD 43 billion.

    Morphosys - Chart picture brightens further

    After the disastrous stock market year 2022 with price losses of 66%, the rebound that the share started at a low of EUR 11.80 at the end of December continues. Since then, Morphosys has posted a performance of almost 70% to currently EUR 21.20. The next resistance levels are already at EUR 21.63 and EUR 24.77. Should the latter be broken, a buy signal would be generated with a potential close to the EUR 30 mark.

    The analysts at US investment bank Goldman Sachs are less optimistic about the Morphosys stock. They adjusted their valuation model for the antibody specialist after the first-quarter figures. The experts continue to see a price target of EUR 12.50, and the investment recommendation is "sell".

    Things should get exciting at the annual meeting of the American Society of Clinical Oncology, which will take place from June 2 to 6, 2023, in Chicago, Illinois, and the hybrid annual meeting of the European Hematology Association, which will be held from June 8 to 11, 2023, in Frankfurt. There, the Martinsried-based company intends to demonstrate the potential of its oncology pipeline. Presentations will include the latest data on Pelabresib, a BET inhibitor currently in development, and Tafasitamab, an immunotherapy directed against CD19, which is marketed in the US together with Incyte under the brand name Monjuvi.

    Evotec - The MDAX beckons

    The Hamburg-based biotech company, active in the field of pharmaceutical drug research, also provided its annual report and an announcement for the first quarter of 2023. Evotec reported a successful start to the year with several extensions and expansions of partnerships. "The size and scope of the transactions were significantly greater than in the same period in 2022," it said in a press release.

    No further details were reported in relation to first-quarter results. In contrast, the future MDAX candidate, which plans to return to the MDAX in June, is sticking to its annual forecasts. Due to a cyber attack, the Company was unable to deliver its audited annual financial statements on time, forcing Evotec to drop out of the index.

    For 2023, Evotec expects EUR 820 million to EUR 840 million in revenue and an adjusted operating profit of EUR 115 million to EUR 130 million.

    The strong news flow from Defence Therapeutics continues. Morphosys plans to present the potential of its oncology pipeline in early June. Evotec maintains its full-year guidance.

    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.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH 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 Fabian Lorenz on November 30th, 2023 | 07:10 CET

    Biotech Alert! Morphosys, Bayer, BioNTech and Defence Therapeutics

    • Biotechnology
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    Morphosys is not for the faint-hearted. After unclear study results, the stock gave up its annual gains within a few days. Analysts are also divided on what the future holds. On December 10, the study details will be released, hopefully shedding light on the situation. Bayer shareholders are currently seeing dark clouds. The stock plummeted from EUR 40 to EUR 30 in a short time. Is the dividend now at risk, or is the entire company in jeopardy? There is a slew of positive news for Defence Therapeutics. Can the stock break out of its sideways trend? A potential partner for the Canadians could be BioNTech. The German biotech favourite is working with full coffers on cancer vaccines. However, analysts remain cautious.


    Commented by Armin Schulz on November 29th, 2023 | 06:30 CET

    MorphoSys, Cardiol Therapeutics, Bayer - Where will the rebound start first?

    • Biotechnology
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    2023 was a challenging year for pharmaceutical and biotech companies. After the boom years of the Corona pandemic, many companies went into a tailspin. But not just vaccine manufacturers were hit; others were dragged down too. The markets are currently volatile. MorphoSys has seen a peak gain of 145% since the beginning of the year - but is currently only up 35%. Cardiol Therapeutics has also gained over 140% and has recently consolidated. The share is currently up 74% since the beginning of the year. Only Bayer's performance curve is pointing downwards. The share is currently worth 34% less than on January 2. We look at where the rebound will start first after the consolidations.


    Commented by André Will-Laudien on November 27th, 2023 | 07:00 CET

    Turnaround Special: 60 billion financial hole - Not with us! TUI, Desert Gold, Bayer and Lufthansa - Get in now!

    • Mining
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    When the stock market is booming almost every day, it is easy to lose sight of the loss-makers of 2023. But it does not have to continue like this! The market regularly rotates through segments, so today's losers will soon be the winners again. This is already evident with TUI and Lufthansa, who are slowly emerging from the Corona shock. Bayer is halting a promising drug and still has to deal with legal disputes. The current situation and the rising gold trend speak in favor of Desert Gold. Let's take a look at the values of tomorrow.