Close menu




June 22nd, 2021 | 12:36 CEST

MorphoSys, Defence Therapeutics, Formycon - Biotechnology shares with great potential

  • Biotechnology
Photo credits: pixabay.com

In the wake of the corona pandemic, companies such as BioNTech, Pfizer and Moderna demonstrated how quickly and safely vaccines can be developed and mass-produced using innovative biotechnological processes. Biotech stocks have risen in favor again, even outside Covid-19. However, some stocks lag behind the price targets forecast by experts, while others are slowly moving (again) in the right direction. We look at three stocks that offer excellent opportunities at the current price level.

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: DE0006632003 , CA24463V1013 , DE000A1EWVY8

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

     

    MorphoSys - Investors hesitant - the share is a potential doubler

    Munich-based MorphoSys, which is engaged in discovering, developing, and marketing innovative antibody therapies for cancer and autoimmune diseases, has had difficulty with investors since the takeover bid for US biopharmaceutical Company Constellation Pharmaceuticals was announced on June 2. The USD 1.7 billion offer initially triggered a significant drop in the share price of almost 17%, after disappointing sales figures for its blood cancer drug Monjuvi, which had just been launched in the US in March, had already severely depressed the share price.

    After several positive assessments by equity analysts and industry experts, the share price recovered slightly. They pointed out that MorphoSys was taking over an extremely promising product pipeline with the developments of the Americans, some of which had a very congruent spectrum. The associated entry into epigenetics also offers the potential to accelerate the Company's developments. Constellation's most advanced product to date is Pelabresib, a compound for myelofibrosis, a rare form of bone marrow cancer, which experts expect to generate peak annual sales of USD 1.7 billion. However, the drug will not complete its Phase 3 clinical trial until the end of 2022. Nevertheless, experts are certain that the MorphoSys share is currently valued too favorably. On average, the price target is EUR 110, which means that analysts believe the share has the potential to almost double. Investors with staying power should take advantage of the current share price weakness to buy.

    Defence Therapeutics - Innovative antibody therapy promises success in cancer, vaccinations also possible in the long term

    Defence Therapeutics is a Canadian biotechnology company driving the next generation of vaccines and ADC preparations (ADC = Antibody Drug Conjugates, i.e. the antibody-drug combination in the "piggyback" process) on its proprietary Accum platform. This process is similar to the mRNA process used by BioNTech in their Covid-19 vaccine Comirnaty and is considered extremely promising in cancer therapy. One of the reasons for this is the targeted and precise drug delivery to tumor cells without harming healthy tissue.

    One anti-cancer vaccine candidate developed by Defence Therapeutics based on its technology is AccuVAC-D001. In a preclinical study, a cure success of more than 70% was achieved in already established solid tumors in animal experiments on mice suffering from cancer. Another active ingredient in the fight against breast cancer is Accum-T-DM1. The further development of the blockbuster drug T-DM1 (ado-trastuzumab, Kadcyla®), which has been approved since 2013 in patients with metastatic HER2-positive breast cancer, is designed to enable more precise intracellular drug delivery using Defence Therapeutics' Accum™ technology. To this end, the Company recently announced a collaboration with the HUS Comprehensive Cancer Center in Helsinki, Finland. The Cancer Center is the largest and most versatile cancer treatment center in Finland with international expertise. Initially, in vitro trials will be used to identify an optimal Accum-T-DM1 candidate for further in vivo trials in animals suffering from breast and gastric cancer.

    In the long term, the Company expects that Accum's technology will significantly shorten the current 14x three-week treatment time with T-DM1 in breast cancer patients while improving efficacy. For us, Defence Therapeutics, which is currently valued by the stock market at around CAD 270 million, is one of the most exciting new stories in the market. Risk-averse investors can buy the stock in Canada, Frankfurt or Stuttgart.

    Formycon - When will the sideways movement end?

    German biosimilar pioneer Formycon had caused an impressive share price rally after announcing the development of a Covid-19 drug candidate at the beginning of the year. However, since peaking at EUR 79.80 in early February 2021, the stock has lost about a quarter of its value again. It seems to have been trapped in a sideways movement around EUR 60 since then. Investors had underestimated the long development cycles in the production of biosimilars. Formycon increased its 2020 operating loss from EUR 2.3 million to EUR 5.7 million instead of lush profits. However, the Company had thus largely met its own expectations. From this point of view, the management cannot be blamed.

    On the contrary, the Covid-19 compound FYB207, which is currently in development, has even proven to be particularly effective against the B.1.1.7 mutation of the SARS-CoV-2 virus, which is considered highly contagious.
    The push for the as-yet-unpublished and unpartnered biosimilar candidate FY206 is both necessary and appropriate. A biosimilar manufacturer will always need to invest a significant portion of its budget in research and development in the long term. The important thing is that the Company can handle these investments on its own. And Formycon, which according to its information, currently has around EUR 49 million in liquid funds, is doing quite well in this regard. For us, Formycon remains an anchor stock in the portfolio that will develop positively in the long term. The analysts' verdict is similar, with an average target price of EUR 71.


    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Stefan Feulner on October 14th, 2024 | 07:00 CEST

    Bayer, Vidac Pharma, Evotec – Enormous potential

    • Biotech
    • Biotechnology
    • Pharma

    Since the US Federal Reserve cut key interest rates and signaled a continuation of its loose monetary policy, the Nasdaq Biotech Index has been on an upward trajectory and has significantly outperformed the broader market in recent days. The correction of the past few months seems to be over in this sector, and the all-time high from August 2021 is within reach. In addition to rising share prices, the number of acquisitions is also increasing significantly, a sign of the undervaluation of many listed companies.

    Read

    Commented by Fabian Lorenz on October 9th, 2024 | 07:15 CEST

    Biotech comeback and takeover fantasy! BioNTech, Bayer, and Vidac Pharma

    • Biotechnology
    • Biotech
    • Pharma

    Money can be made in biotech shares again! However, investors need to look carefully. While Moderna is at a multi-year low, BioNTech and Vidac Pharma have gained over 50% in just a few months. Is there more to come? The chances are good, as both biotech companies have released promising news. Analysts see a tenfold increase in the case of Vidac Pharma, and the focus on the fight against cancer makes the Company a takeover candidate. The cancer specialist would also be a good fit for Bayer and BioNTech, and the share is still cheap. BioNTech is becoming an investment darling again and is focusing on AI. Bayer has yet to make the leap above EUR 30, and analysts are warning about the upcoming quarterly figures.

    Read

    Commented by Juliane Zielonka on October 3rd, 2024 | 14:00 CEST

    Vidac Pharma, BioNTech, Gerresheimer optimize the value chain - From research to patient

    • Pharma
    • Biotechnology
    • Biotech
    • AI

    Medical innovation and rapid therapy development are gaining momentum thanks to the use of AI. In this context, companies in the pharmaceutical and biotech industry are relying on groundbreaking technologies and strategies to optimize the value chain from research to patient. Vidac Pharma is researching an innovative approach to fighting cancer by supporting the body's own immune defenses. The Company has now received a patent in the US, granting exclusivity. BioNTech is using AI-powered research to bring innovative therapies to patients more quickly. Gerresheimer is producing advanced packaging solutions for pharmaceuticals that have the potential to improve healthcare significantly. We take a look at current annual reports and value chains.

    Read