03. August 2021 | 12:22 CET
Siemens Healthineers, Cardiol Therapeutics, BioNTech - Tomorrow's blockbusters
The fight against the coronavirus and the possible return to everyday life promises companies in the biotechnology sector billions in profits. At the forefront, vaccine producers such as BioNTech with its pharmaceutical partner Pfizer or Moderna are the primary beneficiaries of the pandemic. In addition, start-ups are emerging from the diagnostics and therapy sectors, whose formulations have blockbuster potential and could follow a similar path to the vaccine manufacturers in the coming years.
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ISIN: SIEMENS HEALTH.AG NA O.N. | DE000SHL1006 , CARDIOL THERAPEUTICS | CA14161Y2006 , BIONTECH SE SPON. ADRS 1 | US09075V1026
Cardiol Therapeutics - Blockbusters for the heart
An infection with the SARS-CoV-2 coronavirus can affect the heart and, in some cases, even lead to myocarditis. There has also been recent discussion that inflammation of the myocardium and pericardium may also occur following Covid-19 vaccination, particularly with a so-called mRNA vaccine such as BioNTech or Moderna. Cardiol Therapeutics is researching this problem in its novel therapy, focusing on the production of pharmaceutical cannabidiol (CBD) products and the development of innovative therapies for heart disease, including acute myocarditis and other causes of heart failure.
The study on the most promising product, CardiolRx, is being tested in hospitalized cardiovascular patients with positive Covid-19 viral tests. The phase 1 trial has already been completed without side effects. On the contrary, a significant improvement of endothelial dysfunction was observed. Currently, the compound is already in the Phase II/III outcome study with 422 high-risk patients hospitalized in association with Covid-19.
The Company has already raised more than CAD 50 million from the capital markets to fund its research efforts. The last capital round alone, with gross proceeds of CAD 22 million, was several times oversubscribed. Cardiol Therapeutics, which already applied for its Nasdaq listing in the first quarter, is rated "buy" by analysts at GBC Research with a price target of CAD 15.77. The share, which is also traded in Frankfurt, is currently quoted at CAD 2.83.
BioNTech - The sky is the limit
On August 9, the Mainz-based immunotherapy company will publish its eagerly awaited figures for the second quarter. In the run-up, the share is jumping from high to high. Currently, one share certificate is quoted at around USD 343. BioNTech's stock market value is a staggering EUR 66 billion. However, given the incredible pace of business development and the forecast profits, the stock does not appear overpriced compared to its peer group.
Having already posted net profits of around EUR 1.1 billion in the first three months of the year on sales of EUR 2 billion and a margin of 55%, analysts are forecasting sales of EUR 12 billion and profits of EUR 6.5 billion for the year as a whole. A new boost could also come from the booster vaccinations for at-risk groups currently being discussed by politicians, which would generate regular recurring revenue for the Company.
BioNTech also plans to apply its expertise in mRNA technology outside Corona. Funded by the WHO and the European Commission, BioNTech intends to produce a study by the end of 2022 to combat the dangerous tropical disease malaria. In 2019, there were 229 million cases and 400,000 victims who died from malaria. Despite decades of research, there is still no suitable vaccine against the deadly disease.
BioNTech remains the benchmark in the industry alongside Moderna. Take advantage of the current momentum and tighten your stop prices.
Siemens Healthineers - Forecast increased
Pressure is mounting on the Republic's unvaccinated citizens. Although according to politicians, there is to be no compulsory vaccination, vaccinated persons are to be granted far more freedom in the future. The debate on the abolition of free rapid tests from the autumn is also currently enjoying top priority. The CFO of Siemens Healthineers, Jochen Schmitz, already noted at an analysts' conference that the market for rapid antigen tests has probably peaked and that a significant slowdown is to be expected in the fourth quarter.
The Siemens subsidiary was able to turn over EUR 600 million from its Corona rapid test business alone in the second quarter, for a total of EUR 920 million. Although the test business is declining, forecasts for the full year have been raised for the third time. Sales excluding acquisitions and divestments are now expected to grow by 17% to 19%. With Corona's rapid tests, the Company aims to break the billion-euro revenue barrier instead of the forecasted EUR 750 million. Adjusted earnings per share are expected to be in the range of EUR 1.95 to EUR 2.05.
Business around the coronavirus is a multi-billion dollar market. In addition to vaccine manufacturers such as BioNTech, young start-up companies developing drugs or therapeutics could benefit. Cardiol Therapeutics is in a promising position in the heart disease market, though the Company is still doing early-stage research and is attractive to speculative investors. On the other hand, after the potential high in rapid tests and the positive numbers, we are more inclined to profit-take from Siemens Healthineers.