30. March 2021 | 11:23 CET
Paion, PsyBio Therapeutics, NanoRepro - New dimensions
When companies enter previously uncharted territory with new solutions or innovations, it can lead to a profound revaluation of the share. The potential associated with the new activities is usually priced in over a more extended period, sometimes with high fluctuations. We present three companies that are currently going through the exciting phase of a revaluation.
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ISIN: DE000A0B65S3 , CA6936971044 , DE0006577109
PAION AG - A new chapter begins
Paion is a specialty pharmaceutical Company in the fields of anesthesia and intensive care, serving hospitals with novel products in these areas. The Company has been listed on the stock exchange since 2005 and has had an eventful history. Now, however, Paion seems to be facing a new "phase of life".
On March 27, the Company announced an important milestone with the approval of the anesthetic Remimazolam (Byfavo) by the European Commission. The drug is used in so-called procedural sedation in adults ("short-term sedation"). It means that a controlled dimming of consciousness occurs in patients while they continue to breathe independently. The drug is usually used in the emergency room in preparation for endoscopies, among other procedures. The drug was also used in the first wave of the Corona Crisis in some countries for ventilator patients. While Europe has now finally given the green light for marketing, countries such as China, Japan, South Korea, and the US were quicker, and most of them approved the drug last year.
On March 19, shortly before the announcement that significantly boosted the share price, the Company announced a capital increase. The share capital was increased by EUR 5.1 million from EUR 66.2 million. The new shares' price was EUR 1.54, which represented a substantial discount that also required explanation. The Company received an inflow of around 8 million. In addition, the Company is drawing on the third tranche of the financing agreement with the European Investment Bank (EIB) of EUR 7.5 million. Paion will use the inflow of funds to implement the commercial launch of its product portfolio in selected European countries. Paion now really has the chance to turn over a new leaf. The product portfolio is very promising, and the new funds will enable further growth. The same applies to the share. But the immensely high discount on the capital increase remains bothersome.
PSYBIO THERAPEUTICS CORP - Enchanting
Sometimes innovations sound a bit like science fiction. Perhaps the story of the following Company might make some readers frown. PsyBio, a US biotech company, is taking a whole new approach to treating depression and other mental illnesses. The Company is researching the active ingredient psilocybin, which is contained in so-called magic mushrooms. The Company has developed its process and patented it, enabling psilocybin to be produced at a meager cost with bacteria's aid.
The new active ingredients are intended to overcome the existing disadvantages of current medications. The current standard of care includes drugs that chemically interfere with neurotransmitter activity and could have significant side effects. Psilocybin and similar agents are expected to help "rewire" our brains. Very important to note are also the significantly lower side effects. In addition, there is no danger of developing a dependence on the compounds. To have access to experts and users, the Company works closely with the University of Miami's Department of Psychology. This collaboration has already borne fruit and resulted in several patent applications.
The Company has the potential to revolutionize the market of psychotropic drugs. The active ingredients are associated with numerous benefits for patients. The Canadians' innovative strength suggests that they could achieve cost leadership in this field. The share price has certainly done well. But what is a market capitalization of CAD 22 million given the revolutionary potential?
NANOREPRO AG - Capital increase implemented
Marburg-based NanoRepro AG develops, produces and distributes medical self-tests and has been one of the innovation leaders in this growth market for years. The portfolio in the field of self-diagnostics currently comprises 25 products, including pregnancy tests, colorectal cancer screening tests, various allergy tests and an HIV test. This year, the stock went through the roof when the Company declared it was working on a Corona self-test. On March 12, the Company received the German Federal Institute for Drugs and Medical Devices' corresponding special approval.
To generate the necessary working capital for the processing of a significant order received, which could reach a volume of EUR 200 million in the year, the Marburg-based Company announced on March 16 that it would increase its share capital by EUR 933,070 from EUR 11.97 million to EUR 12.90 million by issuing 933,070 new no-par value bearer shares. The placement price was EUR 12.75. The capital increase was closed just one day later in the wake of intense interest from institutional investors.
The net issue proceeds of EUR 11.27 million will be used in particular to pre-finance goods and finance the production of Sars-CoV-2 antigen rapid tests. Taking into account the new number of shares, the Company is currently valued at EUR 200 million. Should the large order be realized this year, the price-turnover ratio will drop below 1. Even though the share has already multiplied, a medium-term doubling from this level is absolutely conceivable.