Close menu




March 2nd, 2021 | 11:15 CET

Q&M Dental, Pfizer, BioNTech, Teva: Watch out for these pharma picks!

  • Pharma
Photo credits: pixabay.com

The COVID pandemic has permanent surprises in store, which strongly influence our daily life. The province of Tyrol was sealed off entirely 2 weeks ago. The Czech Republic is being helped out with vaccine doses because the incidence figures are going through the roof. In Germany, hairdressers and DIY stores have been allowed to open again. Gradually, everyday life is returning to normal, but it will probably take some time before we regain the quality of life of the pre-Corona years. Let's take a closer look at various business models in the healthcare industry to get a feel for what's next.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: SG2E73981531 , US7170811035 , US09075V1026 , US8816242098

Table of contents:


    Q&M Dental Group - Good numbers for 2020, business in full swing

    Q&M Dental Group Ltd, a leading private dentistry group with 89 locations in Singapore, has fared well through the crisis so far. Although its treatment locations were limited in opening due to the pandemic, it did relatively well in 2020. The Company just reported SGD 137.6 million (+8%) revenue and a net profit of SGD 19.7 million, up 10% year-on-year. Q&M Dental Group's revenues consisted of dental and medical clinic treatments, sales of dental equipment and supplies, and Covid-19 test kits and laboratory tests.

    Things are currently going well in the core business in Singapore and Malaysia despite the Covid-19 pandemic. The SGD 7.2 million increase in sales was mainly due to sales from June to December 2020 being significantly higher than in the earlier months of the fiscal year. Operating expenses decreased by 3% to SGD 101.4 million, mainly due to rental discounts given because of a Singapore government pandemic response grant program. As of December 31, 2020, the Group had cash and cash equivalents of SGD 48.8 million and bank borrowings of SGD 77.4 million.

    The Singapore government recently announced a SGD 3.1 billion budget for Covid-19 testing, clinical management and contact tracing as part of an SGD 11 billion Covid-19 package in the 2021 budget. This budget will allow Q&M to double its PCR laboratory testing capacity again. The goal is to perform a significant proportion of the current 28,000 daily tests in Singapore. To maintain its current position as the leading private dental Company in Asia, Q&M aims to open at least 30 dental practices per year. It will also introduce AI-powered dental treatment plans in Singapore as part of various digital projects.

    Q&M Dental Group is entirely up to speed with its service packages and counters the pandemic with active business ideas. Q&M shares currently cost SGD 0.58 in Singapore and have gained nearly 30% in February alone.

    Pfizer Inc. - Here it goes downward!

    The shares of Pfizer Inc. have been on a downward trend for a good 2 months. Shortly after the announcement of the approval of the Covid-19 vaccine, developed together with BioNTech, the stock price suffered. From a high of around EUR 35.50, it most recently went down to around EUR 28.00. What is going wrong here?

    Pfizer and BioNTech have initially demanded more than EUR 50.00 from the EU for their vaccine. However, according to SPIEGEL information, the parties very quickly agreed on the current price of around EUR 16.00 per dose. It may be assumed that Pfizer's internal calculations were significantly higher and that they had rather imagined blockbuster potential from the distribution of the vaccine. Of course, for ethical reasons, the price cannot be approached, as the public would wreak a wave of anger on the "greedy pharmaceutical companies". So we are stuck with EUR 16.00, which will cost the EU alone around EUR 5.3 billion in 2021, not to mention the complicated logistics and high administration costs.

    Pfizer's figures are anything but round at the moment. In the fourth quarter, Pfizer did achieve 12% year-on-year growth at USD 11.68 billion, but that fell short of estimates for USD 12.01 billion. Adjusted earnings of 42 cents per share grew 14% and missed forecasts of 51 cents by a wide margin. It looks like the market will have to find a real value for PFE stock first; we advise staying on the sidelines here for now.

    BioNTech - How is Pfizer's partner doing?

    In parallel with Pfizer's development, BioNTech also went down slightly. Nevertheless, the share is not far from its high of EUR 109. However, the market capitalization is still a high EUR 21.7 billion - still a proud value for a manageable product range. BioNTech was also able to fend off the immanent accusations that, as a manufacturer of life-saving vaccines, it is only allowed to make limited profits. For this reason, among others, BioNTech and CureVac have sought larger partners for development.

    And in doing so, they have long since provided what their critics have been calling for. They are entering into cooperative ventures, including tech transfers, and are thus ramping up production in the numbers in favor of the fastest possible market supply. We all know that government intervention in the free economy rarely works, so we support free pricing based on supply and demand.

    Whether this will lead to an increase in Pfizer and BioNTech share prices again in the medium term is questionable, as the hype surrounding the COVID fight already seems to be old news on the stock market. In this respect, BioNTech is likely to have already seen its high.

    Teva Pharmaceutical Industries - When will the turnaround come?

    Teva Pharmaceutical Industries Ltd. has to fight again with a negative outlook on the part of Fitch. The market has been bothered by relatively high debt levels for years, and the equity ratio has fallen continuously to below 20% in recent years. Revenues fell by a full 17% from 2014 to 2019, while operating profit lost more than 40%. Since 2017, the Company no longer generates a net profit; however, the losses halved recently.

    Since Teva Pharma is still one of the world's largest generics manufacturers, we will almost certainly see sales increases with new products again in the coming years. In the meantime, the Teva share price can stabilize in the USD 9.00 to 12.00 range. If the line around 9.00 USD holds, a 5-year downtrend could slowly come to an end. It is time to put Teva on your watchlist!


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    André Will-Laudien

    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.

    About the author



    Related comments:

    Commented by Juliane Zielonka on May 5th, 2022 | 12:57 CEST

    Bayer, NervGen, Adler Group - Pharma and Real Estate, management in focus

    • Biotechnology
    • Pharma
    • Investments

    Corporate giant Bayer is collaborating with Charité Berlin to cure genetic diseases in the future. A paradox? Big Pharma thrives on alleviating symptoms but not curing diseases. Things will soon look different. The biotech company NervGen is also dedicated to curing diseases. The approach here: reverse degenerative nerve conditions through self-healing. Specifically, this means helping individuals with paraplegia who are wheelchair-bound reconnect their neural pathways. The Company is in the clinical trials phase and was started by a co-founder who witnessed a dramatic accident. One cannot speak of an accident at the real estate company Adler Group. Four board members have resigned after auditor KPMG refused to give its OK for the annual financial statements. Can management regain the confidence of shareholders?

    Read

    Commented by Nico Popp on May 5th, 2022 | 11:52 CEST

    Biotech-Investments also work conservatively: BioNTech, XPhyto, Valneva

    • Biotechnology
    • Pharma
    • Covid19

    Biotech stocks are often seen as all-or-nothing investments - either a bet works out, or the companies disappear into oblivion. But innovative companies in the pharmaceutical and biotech sectors do not always operate in just one area. They are not always spectacular projects that are dependent on approval procedures. We outline the investment opportunities around three well-known biotech stocks.

    Read

    Commented by Carsten Mainitz on January 26th, 2022 | 13:34 CET

    Valneva, Perimeter Medical Imaging AI, MorphoSys - This is where it gets exciting!

    • Pharma
    • Biotech
    • Innovations

    The Corona pandemic still has the world firmly in its grip. The number of new infections is skyrocketing. Nevertheless, the chances are good that the pandemic can be brought under control by means of numerous vaccines. But Corona is not the only scourge. Numerous research efforts are focused on diagnosing, treating and curing cancer. Here, innovative AI-based technologies are increasingly being used to help save lives and significantly reduce costs for the healthcare system.

    Read