June 1st, 2022 | 13:44 CEST
Rain of money for BioNTech shareholders: What are Nordex and Meta Materials doing?
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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.
Meta Materials: Detect strokes early and save lives
According to the World Stroke Organization, stroke is the second leading cause of death globally. The global cost is estimated at more than USD 721 billion and affects more than 100 million people per year. Meta Materials Inc. wants to contribute to early detection, save lives and tap into a huge market. The developer of high-performance functional materials and nanocomponents is working on a portable, low-cost radio wave imaging scanner. It will be used in ambulances for early detection of strokes or at the bedside to monitor stroke development and recovery. The Company provided an overview of the current status at a technical conference. "The application of metamaterials in medical imaging has the potential for rapid clinical adoption by enabling higher image resolution and faster scans without ionizing radiation. Our technology is leading to the development of improved diagnostic tools," said George Palikaras, president and CEO. "META has demonstrated and published the effectiveness of metamaterial technology in both imaging and sensing. I am personally very excited to see how this technology will change people's lives."
Meta's approach has been featured in several technical articles and was recently secured as a US patent. The radio wave tomography system described in the US patent covers a wide range of potential applications, including breast imaging for cancer; brain imaging for clots, haemorrhages and other abnormalities; and diagnosis of internal bleeding and bone fractures after trauma. Currently, the system is being further developed at Meta's new European R&D and sales headquarters in Athens. "Timely differential diagnosis of stroke is critical, as the window of opportunity for treatment to mitigate permanent damage is short," said Dr Kosmas. "With our proposed wearable system, drugs to treat ischemic stroke by dissolving blood clots could be administered while the patient is still in the ambulance. In the case of hemorrhagic stroke, preparations for surgical intervention could begin before the patient arrives at the hospital, saving critical time in a life-and-death situation, or what medical professionals call the golden hour." The Company is also active in other exciting areas with its technology. There was an overview of this during the Company's presentation at the IIF virtual investor conference.
BioNTech: First dividend and then positive data?
Compared to other Corona vaccine makers, such as Moderna or Novavax, BioNTech's stock has held up well this year. And for good reason: the cash and development pipeline of the German biotech leader is bulging. In the current year, BioNTech expects sales of EUR 13 to 17 billion. After the latest quarterly figures, Goldman Sachs also found words of praise. The Company performed strongly thanks to its Corona vaccine, and sales again exceeded expectations. The focus is now likely to turn to trial data on the BioNTech/Pfizer pediatric vaccine and the various Omicron-specific ones. Meanwhile, the US Food and Drug Administration has approved a fourth vaccine for people over age 50. In addition, BioNTech and partner Pfizer have received FDA approval for the third vaccination in five- to 11-year-olds. Study data for vaccination in children under five are expected next. Data for so-called multivalent vaccines are also expected in the coming weeks. These are expected to be adapted to the Omicron variant and other strains of the virus. The timing could be right: Within two weeks, case numbers in the US have increased by nearly 60%. Europe is also preparing for a wave in the fall. At the same time, European approval of competitor Valneva's vaccine remains a long time coming.
And thanks to the full cash register, BioNTech can, of course, conduct research on further potential blockbusters. In the area of cancer treatment alone, 16 product candidates are in clinical trials, 5 of which are already in the second phase. The biotech company expects data on preparations against infectious diseases such as malaria and tuberculosis, and in the field of oncology, in the second half of the year. If these are positive, the share price should gain new momentum. The price target from Goldman Sachs is USD 255. Currently, the BioNTech share is trading at around USD 167.
Nordex: Little reason for hope
Shareholders of Nordex have little to cheer about. Although wind power is an essential part of renewable energies, there is no sign of sustained positive business performance or share price development at Nordex. The Nordex share is currently trading at its 2003 level, with repeated sharp upward and downward breakouts. The latest forecast adjustment fits into the picture. The wind turbine manufacturer is expected to close the current year with a loss. Jefferies sees the wind turbine manufacturer's new targets as disappointing, even though the mood in the industry has suffered recently from similarly bad news from competitors. However, the bottom should have been reached, and the geopolitical headwinds should be receding. As a result, analysts recommend Nordex stock as a buy with a price target of EUR 16. Whether things will be better for Nordex in the future remains to be seen. Big competitors, supply chain problems and cyberattacks give little cause for hope. The fact that Nordex will no longer produce rotor blades in the future and will therefore close the plant in Rostock also does not speak for a growth company. The stock is currently trading at around EUR 11.
The share buyback, dividend and positive study data should give the BioNTech share new momentum. Something exciting also seems to be emerging at Meta Materials. In contrast, Nordex is struggling with numerous challenges.
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