February 4th, 2022 | 12:22 CET
Novavax, Cardiol, MorphoSys - Here's the second wave of Corona vaccine plays!
Table of contents:
Novavax - Vaccine deliveries to start soon in Germany
There is good news for the shareholders of the US vaccine manufacturer. The Standing Committee on Vaccination (STIKO) recommends vaccination with Novavax for adults, and the vaccine is to be delivered in Germany from February 21. STIKO also instructs an administration of two doses at least three weeks apart. The European Medicines Agency puts the efficacy for protecting against corona infection with symptoms at 90%. However, it is unclear whether the Novavax vaccine is also effective against the Omicron variant.
Great hopes are pinned on the Novavax vaccine and even more so on the preparation from Valneva (inactivated vaccine). Different approaches to the mRNA vaccines currently available on the market are expected to convince vaccination skeptics. With the American vaccine, no messenger substances are injected from which the body must first produce antigens; instead, the antigens are administered directly in the form of proteins, after which the body can immediately begin producing antibodies. With a market capitalization of USD 6.8 billion, the Company is only a fraction of the market capitalization of BioNTech and Moderna.
Cardiol Therapeutics - Unrealized potential - for how much longer?
The Corona vaccine manufacturers, BioNTech and Moderna, made a lot of money in the last few months due to their fast market presence. The (upcoming) vaccine deliveries of Novavax and Valneva are a competition for the top dogs that should not be underestimated. However, the addressable market is enormous and leaves enough room for many suppliers.
Corona is of central importance for Canadian Cardiol Therapeutics. However, the Company's perception of the capital market and its valuation still leave much to be desired. The Company is currently undergoing promising clinical trials with preparations based on cannabidiol to treat (inflammatory) heart disease. In the US alone, USD 30 billion in costs are incurred annually related to heart disease. Damage to the heart is also one of the serious side effects of Corona vaccines or potential late effects of influenza disease.
Recent research shows that ingredients in cannabis can prevent Coronavirus infection by blocking its entry into cells. This could give Cardiol preparations blockbuster potential. Analysts unanimously believe that the shares, which are also listed on the NASDAQ, have the potential to multiply. The stock market valuation is moderate at around CAD 141 million, the equivalent of just under EUR 98 million. CEO David Elsley will provide an update on current developments at the International Investment Forum (IIF), which opens its virtual doors on February 17, 2022. Registration is free of charge. For more information, please visit www.ii-forum.com.
MorphoSys - Short breather?
MorphoSys is a biopharmaceutical company dedicated to discovering, developing, and commercializing innovative therapies for people with cancer and autoimmune diseases. In recent months, the shares have gone steeply downhill, and over the year, investors lost more than 70% of capital invested. The share has stabilized at a low level below the EUR 30 mark in recent days.
The Company is undergoing a transformation process, moving away from being a contract researcher for the pharmaceutical industry to becoming a developer of its own drugs. So far, however, only one cancer drug is on the market. The Company will be in the red in the next few years on the way to the expected market launch of the new drugs from 2025. R&D expenditures are increasing significantly. More than EUR 300 million is budgeted this year.
Analysts view last year's billion-dollar acquisition of US-based Constellation Pharma with one eye laughing and the other crying. The expansion of the business model through epigenetics makes sense. Still, the takeover means that a high-risk pipeline has been acquired and that extensive license payments will have to be made in the future to the new investor Royalty Pharma, which put EUR 100 million on the table in the course of a capital increase.
The battle against Corona is an ongoing issue. Away from the established suppliers, there are opportunities with Novavax. The potential of Cardiol is completely underestimated. Ingredients of cannabis can prevent infection with the coronavirus by blocking its entry into cells. MorphoSys still has a rocky road ahead of it.
Conflict of interest
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