Novavax, Sativa Wellness Group, Bayer - The next wave ignites

Novavax - With momentum into the new year

So now it is official, Europe is getting its fifth vaccine. Following a recommendation by the EU Medicines Agency (EMA) for the Novavax preparation, a fifth vaccine is coming onto the market in the EU. The vaccine is effective, safe, and of high quality, the European Medicines Agency (EMA) assessment says. In clinical trials, the efficacy of Novavax against the early virus variants was around 90%, but experience with the new Omicron variant is not yet available. The newly approved vaccine Nuvaxovid is being treated as a beacon of hope, which should encourage vaccination skeptics to take the shot. In contrast to the mRNA and vector substances, the Novavax vaccine is produced using a traditional process. The vaccine contains tiny particles composed of a laboratory-produced version of the spike protein of Sars-CoV-2. This technology, unlike mRNA, has been around for some time. It has been in use in the USA since 1986.

As early as this summer, the EU Commission concluded a contract for the supply of a total of up to 200 million doses. It includes an option for 100 million doses for the years 2022 and 2023. According to the authority, the first tranche is to be sent to the member states as early as the beginning of 2022. For the first quarter of 2022 alone, participating states have ordered about 27 million units.

Once approval has been granted, the US manufacturer will proceed directly to secure recurring revenue with booster vaccinations. A corresponding Phase III study is already underway. The trial will evaluate the safety and efficacy of a third dose of the Novavax vaccine. Following the approval, Novavax's share price dropped significantly and retreated to support at USD 190.00 due to profit-taking. The market capitalization is a whopping EUR 12.73 billion, and the share price has increased more than tenfold at its peak since the Corona breakout in March 2020.

Sativa Wellness - Attractive portfolio

A broadly diversified and attractive portfolio is held by the Canadian Company Sativa Wellness, which has branches in the UK. The group is focusing on the rapidly growing cannabis business due to legalization and is pursuing the ambitious goal of becoming one of the leading producers of high-quality CBD products and CBD services in Europe.

Due to a realignment and a strictly separated 3-pillar model, the Company achieved an impressive turnaround in the past year. Under Goodbody Botanicals, CBD products developed on a gold standard basis are produced for the end consumer. In a strictly regulated European health segment, PhytoVista has also established itself as one of the continent's top three CBD and hemp testing laboratories.

The Goodbody Wellness segment is experiencing a boom due to the newly emerged Omicron variant and is growing at an impressive rate. Goodbody Wellness clinics provide services - including COVID testing - to clinics and direct-to-consumer and direct-to-business services via telemedicine consultation. The network now includes more than 140 clinics, including facilities supported by Superdrug. Goodbody clinics will continue to provide blood testing while responding to recent government guidance on the new COVID-19 Omicron variant. A collaboration was recently established with Superdrug to offer a full range of blood testing services. The agreement includes 40 Superdrug sites where trained nurses draw blood for a range of tests.

The beginning of December saw the best week ever in terms of bookings, with several days breaking previous records. As a result, the Company has generated more than EUR 16.25 million in revenue in the eleven months to the end of November.

Sativa Wellness is fully on track with its three-pillar model, shown by the impressive sales figures for the third quarter and a turnaround in earnings. With a market capitalization of EUR 18.16 million, we believe the stock is undervalued compared to its peer group. Interested investors should take a closer look at the Company.

Bayer - Positives and glyphosate

Positive news continues to come from the Pharmaceuticals Division of Bayer AG. The diabetes drug, Finerenone is about to receive EU approval, and there is also good news from the No. 1 sales driver, the blood thinner Xarelto (Rivaroxaban). Xarelto may now be administered in two additional indications in the United States. Bayer received approval from the Food and Drug Administration (FDA).

The orally available anticoagulant may now be used to treat venous thromboembolism, and as prophylaxis against its recurrence in pediatric patients under 18 years of age after at least 5 days of initial parenteral anticoagulation therapy, the Leverkusen-based Company wrote in a press release. In addition, the health authority approved the use of the drug for thromboprophylaxis after Fontan surgery in patients two years and older with congenital heart disease. According to analyst estimates, Xarelto sales were EUR 4.69 billion in the current year, with revenues expected to reach EUR 4.93 billion in 2022.

There is still no urgency to engage, given the uncertainties that prevail regarding the glyphosate trial.

Corona is entering its next wave, and vaccine manufacturers continue to generate recurring revenue from booster vaccines. Novavax is the fifth approved vaccine in the EU and could appeal to vaccine skeptics. Sativa Wellness benefits from expanded testing measures, and uncertainty continues at Bayer due to the Monsanto deal.