November 14th, 2024 | 07:00 CET
SHARE PRICES EXPLODE as biotech stocks rise! BioNTech, Evotec, Nyxoah
Is Evotec about to make a quick turnaround? A financial investor is positioning itself for a potential takeover, and the stock surged significantly in the last days. Does this mean that the disappointment over the quarterly figures has been forgotten? Could Nyxoah's stock be the next to skyrocket? The chances of this are good. The medtech company expects FDA approval for the first quarter of 2025 and aims to roll out its main product across the US market next year. Analysts see billion-dollar potential, rapidly increasing revenues, and a favourable P/E ratio. BioNTech shares are also benefiting from a rating upgrade by renowned analysts. The target price has been raised significantly. Could this help the German biotech leader break out of its recent consolidation phase?
time to read: 3 minutes
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Author:
Fabian Lorenz
ISIN:
BIONTECH SE SPON. ADRS 1 | US09075V1026 , EVOTEC SE INH O.N. | DE0005664809 , NYXOAH SA | BE0974358906
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"[...] As a company dedicated to developing treatments for rare heart diseases, we see this as an opportune moment to contribute to the fight against heart disease and make meaningful strides in improving heart health worldwide. [...]" David Elsley, CEO, Cardiol Therapeutics Inc.
Author
Fabian Lorenz
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.
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Nyxoah: Hot stock before sales and (price) explosion!?
One of the most exciting medical technology companies for 2025 is likely Nyxoah. The Belgians want to roll out their main product, Genio, in the US next year, thereby entering the world's largest market. Genio is a patient-centered treatment technology for obstructive sleep apnea (OSA). The product is based on hypoglossal neurostimulation and, according to Nyxoah, is a unique solution. For context: In Germany alone, more than 14 million people suffer from obstructive sleep apnea. The disease causes repeated interruptions in breathing during sleep, people with untreated obstructive sleep apnea therefore have a higher risk of suffering from depression, diabetes, heart attacks or strokes. Currently, the disease is treated with a large sleep mask (CPAP) that forces air into the airways, keeping them open. However, CPAP therapy leads to a discontinuation rate of over 50%.
The Belgians have developed a tiny high-tech neurostimulator. The small chip is implanted under the chin and activated during sleep with an external wearable. This ensures a regular forward movement of the back of the tongue, thus preventing the airways from blocking during sleep. The product is already in the European market, with Germany being the largest market so far. Approval from the US health authority FDA is expected to follow in the first quarter of 2025. Nyxoah is already prepared for a quick start to sales for the market launch in the US.
The analysts at H.C. Wainwright expect sales and earnings at Nyxoah to rise rapidly from next year. A sales increase of more than 500% to USD 37 million is forecast for the year of market entry in the US. In 2026, the USD 100 million mark is then expected to be significantly exceeded, with earnings per share of USD 0.41. This puts the P/E ratio for 2026 at 23. And this is cheap because analysts estimate the market potential for Nyxoah to be USD 4 billion to USD 5 billion per year! Accordingly, they recommend buying the stock with a price target of USD 17 (currently USD 9.45).
BioNTech: Goldman Sachs gives the thumbs-up
BioNTech's stock has been one of the surprises of the fall. After testing the EUR 70 mark in August, the stock shot up to over EUR 113 in just a few weeks. Since then, it has remained above the psychologically important EUR 100 mark.
Analysts now also appear to have more confidence in the German biotech flagship again. Most recently, Goldman Sachs upgraded the share from "Neutral" to "Buy". The price target was raised from USD 90 to USD 137. The analysts pointed to BNT327, an immuno-oncology product in clinical development for various solid tumors. This has the potential to challenge standard therapies for a range of solid tumors. Although direct comparisons with other studies are only partially possible, the data reinforce the growing confidence in a successful development. They also point to significant opportunities for BioNTech in various cancer treatments.
Deutsche Bank is even more optimistic. It believes that BioNTech shares have the potential to reach USD 150, giving them a "Buy" rating. The analysts at the German bank also pointed to the positive development of the research pipeline.
Evotec: Is a takeover coming?
A bombshell at Evotec! The biotech stock shot up by more than 20% yesterday. The reason: financial investor Triton has increased its stake to 9.9%. This has given new fuel to the takeover speculation that has been simmering for some time. The price jump caught analysts on the wrong foot.
At Evotec, Deutsche Bank is among the bears. Following the quarterly figures, the "Sell" recommendation was confirmed. The analysts see the fair value at EUR 4 and thus around 50% below the current level.
The German biotech company is currently undergoing a realignment and reported quarterly figures last week. Although numerous analysts had warned of a high loss in advance, the share price fell by more than 10%. This seemed to break the upward trend. However, yesterday the rebound followed. With a price increase of around 11% to EUR 8.50, the previous week's loss was offset entirely. There is no specific news that would explain the jump in the share price. However, investors seem to be gaining courage that the worst is over with the quarterly figures.
Nyxoah is facing two milestones within a short period of time. FDA approval and the subsequent start of sales in the US could push the share price towards the analysts' target price of USD 17. Even then, the stock would not be expensive given the potential annual revenue of several billion USD. BioNTech is not a bargain, but its full pipeline and full coffers make it a core investment in the biotech sector. Evotec has likely weathered the worst operationally, and takeover speculation is driving the stock. Nevertheless, the stock is likely to remain volatile and not be for the faint-hearted in the future.
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