September 27th, 2023 | 07:10 CEST
Rich as a Sheikh? Here is what's happening: Schott Pharma, BioNTech, Cardiol Therapeutics
High-tech or add-on? When Schott Pharma's shares go public in Frankfurt on Thursday, investors are likely to have a clear opinion. The manufacturer of pharmaceutical packaging may be attracting significant interest precisely because its business model is clearly defined. But what sets Schott apart, and which companies in the pharmaceutical and biotech industry might also become interesting? We provide insights and deliver answers!
time to read: 3 minutes
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Author:
Nico Popp
ISIN:
SCHOTT PHARMA AG & CO KGAA | DE000A3ENQ51 , BIONTECH SE SPON. ADRS 1 | US09075V1026 , CARDIOL THERAPEUTICS | CA14161Y2006
Table of contents:
Author
Nico Popp
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
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Schott Pharma: Big returns with small vials?
On Tuesday afternoon, the banks involved in the IPO of Schott Pharma announced that they had narrowed the price range to EUR 26.50 to 27. This means that the proceeds will likely be in the upper-middle range of the original spread. Schott Pharma is thus valued at around EUR 4 billion. The Company is part of glass giant Schott AG, which will remain the majority shareholder after the IPO with around 77% of the shares. Qatar Holding, a significant anchor shareholder, is also involved in the IPO. The funds raised will flow to the parent company. Schott Pharma says it does not necessarily need capital but wants to accelerate its growth.
The Company, which produces glass ampoules, vials and syringes, has scored with solid figures in the past - among other things, its operating profit margin of 28% is impressive. The recently emerging trend for mRNA therapeutics and the weight loss injection Wegovy® is particularly promising for growth prospects. The current situation with BioNTech's vaccines also highlights the importance of packaging, as their vaccines are delivered in multiple-dose containers. While this approach made sense for vaccination centers in 2021, in 2023, valuable vaccines may be discarded due to insufficient recipients for these "bulk packages." Competitors, such as Moderna, have long been supplying single doses; however, there are no supply agreements with Germany. Schott Pharma's stock scores with solid figures and robust business. However, the stock does not yet have a track record. Investors may not find compelling reasons to invest in the current market environment.
BioNTech: How low can we go?
The same applies to the German mRNA pioneer BioNTech. The share is stuck in a long-term downtrend. Although the Coronavirus is still generating sales, the willingness to vaccinate is dropping significantly. However, investors should keep an eye on BioNTech's numerous promising projects. With the pandemic billions, BioNTech can research in peace at its own pace - the Mainz-based biotech should never be written off, not only because of its history. However, there is also no immediate urgency to take action.
Cardiol Therapeutics: Progress in Studies, Capital - Ingredients for a Breakthrough?
The situation is somewhat different for the Nasdaq-listed biotech company Cardiol Therapeutics. The Company develops active substances against rare inflammatory heart diseases, such as myocarditis. A multicenter, international, double-blind, randomized, placebo-controlled Phase II ARCHER study is currently underway to evaluate the safety and tolerability of CardiolRx™ in patients with acute myocarditis. In rare diseases, recruiting enough patients for studies is often challenging. However, Cardiol Therapeutics recently announced that it will be able to complete enrollment of patients in the third quarter of 2024, six months earlier than expected.
Dr. Andrew Hamer, Chief Medical Officer at Cardiol Therapeutics, commented: "The data generated from patients enrolled in the ARCHER trial will provide important information supporting the use of CardiolRx™ as a novel small molecule therapeutic in this severely debilitating, rare disease. This condition is considered an important trigger for acute and fulminant heart failure and a leading cause of sudden cardiac death in people under 35 years of age, and for which there are no approved therapies." Thanks to a significant capital raise conducted by the Company in 2021, Cardiol Therapeutics still has sufficient funds to continue its trials. The stock has doubled since April but has further long-term catch-up potential from a chart perspective. If the Company delivers positive study results, the penny stock could rebound.
Cardiol Therapeutics operates in an exciting medical field, is solidly financed and could benefit from extended patent protection in the event of market approval, as myocarditis is considered a rare disease. While Schott Pharma, a newcomer to the stock market, does not yet have a track record, and BioNTech is in a downtrend, Cardiol Therapeutics has a comeback on the horizon. However, given the ongoing clinical trials the stock must be considered speculative.
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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
In this respect, there is a concrete conflict of interest in the reporting on the companies.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
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