10. September 2021 | 12:43 CET
NanoRepro, XPhyto Therapeutics, BioNTech, Valneva - The next biotech wave is rolling!
So far, vaccine manufacturers can maintain their high valuation because the next wave of new infections is rolling in. In Germany, tests will be subject to fees starting in October, making public life more expensive for those who want to participate. In surveys, most German citizens have expressed support for fee-based testing; probably, the populations here should be separated into "vaccinated" and "unvaccinated" to indicate general opinion accurately. Four interesting values benefit from the current situation.
time to read:
ISIN: NANOREPRO AG | DE0006577109 , XPHYTO THERAPEUTICS | CA98421R1055 , BIONTECH SE SPON. ADRS 1 | US09075V1026 , VALNEVA SE EO -_15 | FR0004056851
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
NanoRepro - Into the next wave with partner Viromed
NanoRepro was already able to benefit strongly from the demand for tests in 2021. Now a consortium of investors seems to be positioning itself. NanoRepro's partner, the Viromed Group, recently took a minority stake in the Marburg-based Company. Arguably, this is the first step toward putting NanoRepro's high cash reserves to good use.
Viromed's plans go further, however, as it subsequently became known that it intends to acquire a majority stake in NanoRepro through various contributions in kind. However, Viromed did not yet provide details on the plans. According to the latest data, the Viromed Group currently holds less than 30% of NanoRepro.
Viromed is a high-growth partner from the environment of hospital operators and significantly expands the spectrum of NanoRepro. That brings renewed fantasy for the NanoRepro share. The share price recently rose to EUR 11.50 and is currently consolidating at the EUR 9 mark. In the medium term, there should be a significant appreciation here!
XPhyto Therapeutics - Sales launch for the new 25-minute test
XPhyto Therapeutics is making good progress with its PCR tests. The recently announced launch of its 25-minute COVID-19 PCR test "COVID-ID Lab" was successful. During the pilot project at the test centers in Berlin, the workflows and protocols for the rapid, efficient, and reliable COVID-ID Lab were optimized for deployment. These technical and operational insights are critical for the product launch and further sales to existing and new customers. Now the stage is set for large-scale commercialization.
"We are extremely pleased with the results of the pilot project. The practical lessons learned, from training protocols to efficient workflows, are necessary to accelerate the growth of our sales force. These results demonstrate the success of our business strategy in rapid point-of-care diagnostics," said Wolfgang Probst (COO). In parallel to the pilot project, concepts and services are being developed with partners to offer modular testing and hygiene solutions for larger events such as concerts, sporting events and conferences. Regarding the discussion about applying the 3G or 2G rule, this comes just at the right time because, in Baden-Württemberg, public events can only be attended with an up-to-date PCR test. XPhyto is here to help with its cost-effective 25min test, as other authorities and governments will also make the switch from antigen to PCR testing in the coming months. XPhyto's partner in this business is BeoVita GmbH & Co. KG.
XPhyto's timing for the late summer sales launch could not be better. Recently, the share has consolidated somewhat and, at CAD 1.60, is now in a very interesting buy zone from a chart perspective. It is also being traded in Germany with good turnover. A medium-term entry is worthwhile in the EUR 1.05 to 1.25 range - because the Company's pipeline is full to bursting.
BioNTech - Booster vaccines ensure high order intake
According to experts, the availability of Corona vaccines continues to increase significantly. By the end of 2021, 12 billion doses will have been produced. Developers are coming from a wide variety of continents. Chinese vaccines account for around half of this, with Western manufacturers producing the other half. Every third person on earth is completely vaccinated against the coronavirus.
There are even surpluses of vaccines at the moment because governments want to be ready for the potential mutants in the fall and offer booster vaccinations. The US, Canada, the EU and the UK will have so many vaccine doses at the end of September that they could give about 500 million doses to other countries without further damage to their vaccination campaigns. In 2022, Pfizer CEO Albert Bourla expects production to increase further to four billion doses of the Comirnaty vaccine. A large portion is already being supplied to poorer countries, and there is also sufficient market supply for 2022. Currently, however, demand for vaccination is low due to a lack of government action.
BioNTech shares are still floating on top of the wave, even if the price has given up 28% from the August high. The price-to-sales ratio is about 6, and the P/E ratio in 2021 is 8.5. The ratios are now attractive again, so in weakness, one should get in.
Valneva - New ideas from France
The share of the French-Austrian biotech Company Valneva SE has almost doubled on a monthly basis. The background is the growing hope that the Company's Corona vaccine will receive approval before the end of this year. Perhaps too late, many investors are asking?
The vaccine peak is likely to be passed in the fall, and companies like BioNTtech and Moderna have already sold their wares. But this view may fall short in the case of Valneva. Their vaccine, which is currently being tested in a phase 3 trial in the UK, is the only one in Europe based on the classical method of dead viruses. Just as has been the case for years with vaccinations against influenza or hepatitis, it could become a big hit. It could win over people who have not yet been vaccinated because of their skepticism about the new mRNA vaccines.
So there is a lot of speculation, but also plenty of imagination in the share. Since the summer of 2020, the share price has risen by 325%. That means that a lot of hope is already priced in. However, anyone looking for diversification from the well-known names is in good hands with Valneva. From a chart perspective, the value must first rise above EUR 25 again, and then it could continue to run.
The stocks considered here are active in the environment of pandemic control. Vaccine manufacturers have been in demand for months and are now consolidating strongly. Test providers such as NanoRepro or XPhyto could experience a decent renaissance in the fall.