Close menu




June 23rd, 2022 | 11:35 CEST

Takeover fantasy: +50% in Valneva shares, and what are BioNTech and Defence Therapeutics doing?

  • Biotechnology
  • Pharma
Photo credits: pixabay.com

Tension is rising in the biotech sector as the takeover merry-go-round spins faster and has now hit Valneva. Pfizer's entry caused the stock to explode 50% in three trading days. Earlier, Pfizer had announced it would acquire migraine specialist Biohaven for USD 11.6 billion. Other pharmaceutical giants are also active: Halozyme wants to swallow Antares Pharma, a specialist in urology and endocrinology, for USD 960 million. The acquisition of Sierra Oncology is costing GlaxoSmithKline around USD 1.9 billion. Like Valneva, Defence Therapeutics is about to start important trials and could attract a major partner. A takeover of BioNTech is unlikely, but the flagship German biotech should also benefit from improved sentiment in the industry. The coming week should be operationally exciting for shareholders.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: VALNEVA SE EO -_15 | FR0004056851 , BIONTECH SE SPON. ADRS 1 | US09075V1026 , DEFENCE THERAPEUTICS INC | CA24463V1013

Table of contents:


    David Elsley, CEO, Cardiol Therapeutics Inc.
    "[...] 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.

    Full interview

     

    Defence Therapeutics: With a full pipeline in the takeover carousel

    Things could get exciting for Defence Therapeutics in the coming months. The shares of the Canadian biotech company have lost significantly in the stock market quake of recent weeks. Yet it has an innovative platform and a full product pipeline with positive study results already reported most recently at the end of May. Three clinical trials are to be started by the beginning of 2023. This could be the right time for a pharma giant to get its foot in the door with a first investment - similar to what Pfizer just did with Valneva. Fittingly, the investment bank Canaccord Genuity outlined the Company's current situation in a detailed study the day before yesterday. Perhaps to excite a potential partner?

    The goal of Defence Therapeutics is to develop universal vaccines. To that end, the Canadians have developed an AccumTM drug booster platform. The platform, patented in the USA, allows antibody-drug conjugates (ADC) to be introduced into the diseased cells. The advantage: an up to 10-fold stronger effect compared to conventional ADC-based drugs. Based on the AccumTM platform, Defence Therapeutics is researching vaccines in oncology and infectious diseases, among others. From the cancer pipeline - including a cervical cancer vaccine - three clinical trials (phase 1) are scheduled to start by early 2023. Research is also being conducted into a universal vaccine against a wide range of cancers, giving the Company opportunities in a market worth billions. According to estimates, the vaccine market for immuno-oncology alone is expected to grow to around USD 105 billion by 2027. Also of interest is a COVID-19 vaccine, which has already led to a high level of protection in rodents. The golden days in this market may be over, but indications are that regular vaccinations will be useful- similar to influenza. The highlight of Defence Therapeutics is that the vaccine could presumably be offered as a nasal spray and thus set itself apart from the competition.

    BioNTech: New momentum?

    When it comes to COVID-19 and cancer research, BioNTech naturally comes into play. Indeed, the Company is not a takeover candidate; the founders and major shareholders seem to be too long-term oriented for that, and the market capitalization of around USD 30 billion also speaks against it. But the share should also benefit from the improved environment even if Goldman Sachs had renewed the rating to "Neutral" last week. The price target of USD 206 is clearly above the current price of the BioNTech share at USD 123. BioNTech has an extensive product pipeline to grow organically. In addition, Goldman brings BioNTech into play as an acquirer if an opportunity arises to exploit synergies. The biotech group has the necessary capital. The COVID-19 vaccine is also expected to generate billions in revenue this year.

    From an operational point of view, things will get exciting at BioNTech in the coming week. On June 29, the Wiesbaden-based company will host a virtual conference. There, there will be an update on the ongoing development work. In addition, BioNTech plans to provide insights into the scientific and technological innovations of the Company's own research engine.

    Valneva: Thanks to Pfizer +50% in three days

    Valneva shows how strongly takeover fantasies can drive a share price. Last Friday, the share was still trading at just under EUR 8. Then came the news that Pfizer would be taking a stake, and by Tuesday, the share had shot up to over EUR 12. So 50% in three trading days. And yesterday, in a weak market environment, the share fell just below the EUR 12 mark. Specifically, the deal calls for the US pharmaceutical group to pay around EUR 90.5 million for an 8% stake, corresponding to a shareholding price of EUR 9.49. In addition, milestone payments have been agreed upon. The entry is due to Valneva's Lyme disease vaccine candidate. Its Phase 3 trial is scheduled to start in the third quarter of the current year. Valneva sees blockbuster potential for the vaccine. As a result, investors' disappointment over the flop with the planned COVID-19 vaccine has evaporated for the time being. Because of the longer-than-planned approval and cancelled orders with the EU, Valneva shares had crashed by almost 80% from their high of around EUR 30 at the end of 2021.


    The acquisitions and investments by Big Pharma bring momentum to the biotech market. After the significant share price losses, BioNTech and Defence Therapeutics should also benefit from this. In the medium term, both will depend, of course, on the study results. Valneva's share price is already a good 20% above Pfizer's entry price. Since yesterday, the share has taken a healthy breather.


    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") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    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.

    About the author



    Related comments:

    Commented by Juliane Zielonka on April 12th, 2024 | 07:00 CEST

    AI in healthcare with Evotec, Defence Therapeutics, Bayer: Revolutionary advances and medical breakthroughs

    • Biotechnology
    • Pharma
    • AI

    Artificial intelligence (AI) is gaining momentum in the healthcare sector. AI-based systems can use medical databases to save valuable time in research, enabling companies like Defence Therapeutics to go to market faster than others. In oncology research, the Canadian company has just achieved a breakthrough that gives hope to many cancer patients. AI-assisted diagnoses allow diseases to be detected earlier and treated more effectively, leading to improved quality of life for patients. Precision medicine in strong partnership networks is Evotec's focus. The share is particularly popular with hedge fund managers. Analyzing medical images and data in real-time and detecting even the smallest deviations or anomalies is the top priority for Bayer AG in collaboration with Google Cloud. Which companies are convincing investors the most?

    Read

    Commented by Fabian Lorenz on April 10th, 2024 | 07:00 CEST

    BASF and Cardiol Therapeutics recommended to buy! TUI share with momentum!

    • Biotechnology
    • Cancer
    • travel
    • chemicals

    BASF shares have gained over 30% within six months. But is the rally in BASF shares slowly running out of steam? The fact that the share did not rise sharply yesterday despite a significant price target increase suggests this is the case. Many experts see little potential for further price increases. The situation is different for the biotech company Cardiol Therapeutics. The analysts at Canaccord believe that the shares of the specialist in cardiovascular diseases could perform by around 200%. Financing is secured until 2026, and important study data is due in the current quarter. The TUI share has been on a roll for several months now. Will the share continue to rise with the increase in temperatures? Management is certainly optimistic about the future.

    Read

    Commented by André Will-Laudien on April 10th, 2024 | 06:45 CEST

    Attention: Biotech takeovers, after MorphoSys, now Bayer, Vidac Pharma, BioNTech and Pfizer are on the radar

    • Pharma
    • Biotechnology
    • Innovations

    Since the onset of the COVID-19 pandemic, there has been little movement in the biotech sector. However, after a challenging year in 2023, the sector was at least able to start the new year on a solid footing. The surprising takeover of MorphoSys recently got hearts beating again, as Novartis put a whopping EUR 2.7 billion on the table for the cancer specialist from Munich. Only months before, MorphoSys had been traded on the stock exchange at just EUR 700 million. The special market situation in this case was also characterized by the high short ratio, which led to an exorbitant rise in the share price of almost 400% in the final phase. Speculative investors are now keeping a wary eye on potential takeover candidates as the sector is once again attracting considerable attention. We are taking a closer look and searching for the next pearl.

    Read