March 26th, 2024 | 07:00 CET
Out of BioNTech and into Defence Therapeutics and Evotec shares?
The BioNTech share is currently out of steam. Although sentiment in the sector is improving, as star investor Cathie Wood recently invested in Moderna, the German biotech leader is not making any headway. The latest figures have not convinced analysts, and the price targets have even been further reduced. In contrast, the shares of Defence Therapeutics and Evotec appear to have more upside momentum. The Canadian cancer specialist has just raised new capital to develop its exciting pipeline. The Company has recently been granted a new US patent for its approach to cancer therapy. Evotec has a "Buy" recommendation. Could this mean the share is on the verge of an upward trend?
time to read: 3 minutes
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Author:
Fabian Lorenz
ISIN:
BIONTECH SE SPON. ADRS 1 | US09075V1026 , DEFENCE THERAPEUTICS INC | CA24463V1013 , EVOTEC SE INH O.N. | DE0005664809
Table of contents:
Author
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.
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Defence Therapeutics: US patent received and financing secured
Is now the time to buy into Defence Therapeutics? The share has fallen significantly this year and has yet to be able to benefit from the improved sentiment in the biotech sector. Last Friday, the Canadians announced the successful completion of a financing round. This has filled the coffers and taken the pressure off the share price. The US Patent and Trademark Office (USPTO) has approved the protection of Defence Therapeutics' AccuTOX® technology. The patent now protects a portfolio of therapeutically active molecules that make up the AccuTOX® platform. According to the patent, preclinical and GLP studies have shown that AccuTOX®, alone or in combination with immune checkpoint inhibitors such as anti-PD1 and anti-LAG3, are safe and have significantly reduced the growth of solid tumors.
Defence CEO Sebastien Plouffe comments: "The rapid issuance of the broad '350 patent by the USPTO confirms the innovative and breakthrough potential of AccuTOX® as a leading cancer therapeutic and also provides a long patent term of market exclusivity for Defence to fully explore the commercial potential of the AccuTOX® platform and maximize profit for our partners and investors."
Following the patent, Defence Therapeutics has also received direct approval from the US Food and Drug Administration (FDA) to start the Phase I clinical trial. This trial will analyze the effects of AccuTOX® as monotherapy and in combination with Opdualag in inoperable stage IIIB to IV melanoma. The Company is, therefore, continuing at full throttle.
BioNTech: Analysts reduce price targets
While momentum could now be back with Defence Therapeutics, BioNTech is simply running out of steam. Anyone expecting rising share prices from the latest quarterly figures was disappointed. The share's downward trend is in full swing, and if it continues like this, a slide below the EUR 80 mark is possible. The shares of Germany's largest biotech group are not receiving any support from analysts. The analysts at Deutsche Bank confirmed their "Hold" rating following the quarterly figures. The price target was reduced from USD 110 to USD 95. Goldman Sachs currently sees the fair value of BioNTech shares at just USD 91. Previously, it was USD 100.
Although BioNTech is making progress with the development of its research pipeline, as the CEO himself said a few weeks ago, the first products - particularly in the field of oncology - will not be ready for the market and generate sales until 2026. The stock market does not have that much patience at the moment.
Evotec share: 100% possible?
Evotec's free fall seems to have come to an end. The share is working on bottoming out at over EUR 13. Since the turn of the year, headlines about insider selling by the outgoing CEO have caused Evotec's share price to plummet from around EUR 21 to just under EUR 13. While the legal consequences - especially for the CEO - are unclear, investors are again focusing more on the operating business. And the Hamburg-based biotech company is doing quite well in this respect. Warburg Research, therefore, continues to recommend the Evotec share as a "Buy". However, the target price has been reduced from EUR 29 to EUR 25. Despite the share price slump described above, the upside potential remains nearly 100%. However, Warburg analysts also know that Evotec has destroyed a lot of confidence. They point out that there is currently a lack of positive momentum. One such catalyst could be the appointment of a new CEO.
The biotech sector is currently building up strength again. However, US companies have primarily benefited from this so far. There is no share price fantasy for BioNTech at the moment. However, due to its strong cash position and attractive pipeline, the Company's medium-term prospects remain positive. Defence Therapeutics appears to be ready for a jump in share price. Financing has been secured, and the latest patent shows that the AccuTOX® platform is promising, perhaps also for a potential buyer. The sell-off at Evotec has stopped for the time being, but for a new uptrend to begin, the Company likely needs to find a new CEO first.
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