31. August 2021 | 10:37 CET
Sales explosion? Novavax and Diamcor on the trail of BioNTech
When companies suddenly report strong jumps in sales, investors should take a closer look. On the one hand, there may be considerable opportunities for share price gains. On the other hand, it must also be checked whether the development is sustainable or whether it is a one-off or seasonal event. BioNTech has impressively shown that the Company and the share can profit from a sudden increase in sales. Who is next? Investors should take a closer look at the vaccine developer Novavax and the diamond producer Diamcor - it could be worthwhile.
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ISIN: NOVAVAX INC. DL-_01 | US6700024010 , Diamcor Mining Inc. | CA2525312070 , BIONTECH SE SPON. ADRS 1 | US09075V1026
Diamcor Mining wants to double sales: In the slipstream of De Beers and Tiffany
Diamcor Mining is still largely unknown on the German capital market. But this could change quickly. The Canadian Company has started to develop its Krone Endora mine. It is located in a well-known diamond district in South Africa and borders directly on one of the most productive mines in the world - the Venetia mine of the De Beers Group. Therefore, the luxury group Tiffany has already bought into Diamcor Mining through a subsidiary. For EUR 10 million (partly loan, partly convertible bond), Tiffany has secured a right of first refusal on rough diamonds at a fair market price. And Diamcor has now started production. As of July 2021, the Canadians have mined 2,989.54 carats of diamonds, generating revenue of CAD 744,085. The production volume is expected to double in the coming months. At the same time, only 5% of the area has been mined so far. The remaining 95%, therefore, offers further considerable growth potential.
After a significant price increase between the end of May and July, the share has since consolidated between CAD 0.35 and CAD 0.27. However, this could soon be over. If monthly sales can be increased to over CAD 1.4 million, the CAD 18 million does not seem too high. Especially since only 5% of the property is currently being worked. With the revenue from diamond sales, Diamcor could develop other parts of the Krone Endora project.
BioNTech uses billions from Corona vaccine for research
BioNTech is currently demonstrating that it is possible to use a relatively short-term sales boom to take the entire Company into a new league. Before the Corona pandemic, BioNTech employed around 1,300 people; now, it has approximately 2,000 - and is currently looking for another 500. The billions in revenue from the sale of the COVID-19 vaccine are being invested in broadening the Company's base. The Marburg-based Company is researching other vaccines based on mRNA technology against the dangerous tropical disease malaria. A clinical trial is to be launched by the end of 2022. The project is supported by the EU Commission and the WHO. In addition, BioNTech recently announced the acquisition of Kite's neoantigen T-cell receptor (TCR) development platform for solid tumors and clinical product candidate manufacturing assets, including leases for the manufacturing facility in Gaithersburg USA. With the acquisition, BioNTech expands its manufacturing capabilities in North America and aims to accelerate its research and development programs for individualized neoantigen TCR cell therapies for solid tumors. Growth financing should not be a problem for the foreseeable future. The COVID-19 Delta variant continues to keep the world on tenterhooks. Infections and deaths are skyrocketing again, and not just in the US. As a result, the BioNTech vaccine will remain a cash cow for the foreseeable future.
Novavax: The clock is ticking for the vaccine
Due to the current Corona situation, Novavax does not seem to be late with its NVX-CoV2373 vaccine either. The vaccine promises a significant increase in sales for the US company. Therefore, the Company and the share are facing important weeks. The specific date for when the Americans will apply for approval of their vaccine in the EU is still open. However, to receive it by the end of the year, experts believe it should be done by October. In addition, if Novavax gets a grip on the problems with production partners in the US, this should give the stock a boost again. It will be important that the mass-produced vaccine is identical to the vaccine from the clinical trials. In the UK, at least, plans already seem to be in place for the Novavax vaccine. Along with products from BioNTech and Moderna, it is part of a government study around the effect of booster vaccines. The data from 1,200 study participants are to be evaluated before the end of the year.
BioNTech is setting an example of how to use strongly rising sales to develop the Company sustainably. Diamcor wants to follow this example - albeit in a completely different industry - and use the increased cash flow from diamond sales for project expansion. Novavax currently still has the most question marks, but the Delta variant seems to ensure that the vaccine is not too late.