Close menu

July 13th, 2022 | 14:27 CEST

MorphoSys facing a takeover? Exciting autumn ahead for BioNTech and XPhyto

  • Biotechnology
Photo credits:

Biotech investors could be in for an exciting autumn. After some sharp price corrections, positive things are happening again in the biotech sector. For one thing, the takeover carousel. It all started in June when Pfizer announced the acquisition of migraine specialist Biohaven for USD 11.6 billion, and GlaxoSmithKline plans to swallow Sierra Oncology for around USD 1.9 billion. Recent deals include the acquisitions of ViaCyte, La Jolla Pharmaceutical and Pliant Therapeutics. MorphoSys is also a possible takeover candidate. It could be a win-win for the German biotech company if the price is attractive. Xphyto could also see at least one investment, as a market-ready product has great potential.

time to read: 3 minutes | Author: Fabian Lorenz

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


    XPhyto with the gold standard - PCR test in just 20 to 25 minutes

    For Big Pharma, XPhyto Therapeutics might be worth a look. The Canadians are focused on developing next-generation drug formulations, diagnostics and new active pharmaceutical ingredients. After a slide of around 85% this year, the stock is trading at EUR 0.42, where it seems to have found a bottom. The current source of hope at XPhyto is an innovative pain patch. It can be applied just before injections. The rotigotine patch is based on the TDS platform technology developed by XPhyto's German subsidiary Vektor Pharma. Together with a strong sales partner, a huge market could be developed. According to Kuick Research, the global market for transdermal skin patches is expected to grow to about USD 20 billion by 2028. That would correspond to a threefold increase over the USD 6.5 billion in industry sales in 2020 (source: Research and Markets). Given the potential, XPhyto's market capitalization of around CAD 40 million should not deter a major player.

    Overall, XPhyto is actively researching in the areas of transdermal and orally dissolvable drug formulations. Already ready for the market is the gold standard among PCR corona tests. The advantage: XPhyto's COVID-ID test delivers results after only 20 to 25 minutes. That is because prior RNA extraction is not required as part of sample preparation. XPhyto thus closes the gap between inaccurate antigen tests and conventional PCR solutions whose testing takes up to 24 hours. So far, the Company has not been able to report significant sales success in this area, but perhaps there will be a second chance in the fall. So not only are voices increasing worldwide warning of a new COVID-19 wave in the fall, but initial action is being taken: TUI-Cruises, for example, are reintroducing mandatory masks, and the US has ordered a vaccine from Novavax. A strong sales partner could also give XPhyto a helping hand in this area.

    BioNTech - Booster for the share in the fall?

    BioNTech could also benefit from a new Corona wave in the fall. The new German biotech star is currently working on a COVID-19 vaccine adapted to the Omicron variant, which is now in the regulatory review process. In recent weeks, the share has performed well. Within three weeks, it went up from EUR 116 to EUR 164. The share was thus also unimpressed by the lawsuit filed by German competitor CureVac. CureVac has filed a lawsuit with the Düsseldorf Regional Court for patent infringement. The lawsuit concerns the mRNA technology and thus BioNTech's Corona vaccine Comirnaty. From CureVac's point of view, BioNTech has infringed several patents, for example, in the production of mRNA molecules. CureVac is therefore demanding appropriate compensation for an infringement of intellectual property rights. BioNTech rejected the accusations. The stock exchange seems to see it similarly.

    MorphoSys: Possible takeover by Incyte a win-win situation?

    And so back to the takeover carousel. MorphoSys is now also on this. The reason is an analyst study by RBC. The report speculates about a takeover by Incyte. The US company had a turnover of almost USD 3 billion last year and is thus significantly larger than MorphoSys. RBC believes that valuations in the biotech sector are currently attractive, including MorphoSys. The two companies are already partners. In mid-June, MorphoSys, Incyte and US giant Pfizer announced a collaboration on a clinical trial to further develop the MorphoSys product, Monjuvi. The trial will investigate whether the immunotherapeutic combination of Pfizer's novel TTI-622 fusion protein and Monjuvi (in combination with lenalidomide) can be used in patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) who are not eligible for autologous stem cell transplantation (ASCT). Monjuvi, in combination with lenalidomide for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL), received FDA approval in 2020. An acquisition could make sense for both sides: Incyte would significantly increase its pipeline. MorphoSys has so far made no progress in commercializing its pipeline, and the share price is trading at a 5-year low of just under EUR 22. Most recently, JPMorgan had rated the MorphoSys share as "Neutral", with a price target of EUR 34.

    The biotech sector is gaining momentum. The possible acquisition of MorphoSys by Incyte could be a win-win situation for both sides if the price is right. The acquisition of XPhyto could also make sense for a pharmaceutical company with strong sales. BioNTech shares have performed well in recent weeks and could benefit further from a booster program for the autumn wave.

    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

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

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    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?

    • Biotechnology
    • Pharma
    • Innovations

    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

    • Biotechnology
    • Pharma

    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

    • Biotechnology
    • Pharma

    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.