August 2nd, 2022 | 10:57 CEST
These sources of return concern us all: Fresenius, Defence Therapeutics, BioNTech
Table of contents:
Fresenius: What is going on?
The current share price of dialysis specialist Fresenius is a tragedy: In the past ten years, the share price has not been as low as it is today. If a stock split is also considered, the share is valued much lower today than it was back then. The weaker result at the beginning of the year was due to burdens in the wake of the pandemic. Fresenius is currently doing particularly well with the Helios hospital chain, which has significantly increased its sales in recent months. Investors in Fresenius always benefit indirectly from the business of its subsidiary Fresenius Medical Care - here, sales rose by 8% at the beginning of the year. But why is the Fresenius share not getting off the ground?
The debt ratio at Fresenius is currently around 60% - and rising. In times of rising interest rates, investors are therefore becoming cautious. Although the Company wants to become significantly more profitable by the end of next year and save around EUR 150 million annually, this information has been known on the market for some time now, without investors having bought into it when the share price was falling. With another pandemic fall looming, Fresenius' "covid-sensitive" stock does not appear to be a good choice. However, the stable dividend, which currently offers a yield of more than 3%, is a positive factor.
Defence Therapeutics: Renowned institutes pave the way for approval procedures starting in 2023
Defence Therapeutics does not pay a dividend. However, a payout is the last thing investors expect from the Canadian biotech company. Defence Therapeutics has several mainstays and works, among other things, on vaccines against cancer, such as skin or breast cancer. The Company's own patented drug enhancer Accum™ has potential as an active ingredient in addition to its intrinsic property, as it is highly toxic and is said to offer potential in tumors when applied in a targeted manner. A few weeks ago, the Company announced plans to further research the technology in collaboration with internationally renowned institutes such as the Curie Institute, the Institut de Recherche en Cancérologie de Montpellier and the HUS Comprehensive Cancer Center from Finland. These collaborations with different foci and experts could yield important insights for Defence.
In early 2023, Defence Therapeutics plans to launch as many as three Phase 1 trials to drive regulatory approval of its technology. "Defence's Accum™ platform was primarily developed and tested in vitro and in vivo to improve intranuclear drug delivery for several FDA-approved antibody conjugates or novel conjugates in development. We strongly believe that all these important results achieved this year related to Accum™ ADCs will further demonstrate the efficacy of our Accum™ technology and take Defence to a new level," said Sebastien Plouffe, CEO of Defence Therapeutics. After falling significantly in recent weeks, the stock could become interesting again as we head into winter. In June, Canadian analyst firm Canaccord Genuity published detailed research on the Company. Defence Therapeutics should therefore be on several watch lists.
BioNTech: Legal dispute leaves the market cold
With fall approaching, BioNTech's stock is also worth a look. The Corona vaccine pioneer is currently working on improved versions of its vaccine for the fall. At the same time, the patent dispute with Tübingen-based rival CureVac entered a new round. BioNTech has defended itself in the US with a declaratory judgment action and assumes that it has not infringed any patents held by the Swabians. Even though legal disputes never go down well on the market, as a rule, the share has recently freed itself and is now at the upper end of the sideways trend that has been intact since the turn of the year. If new impulses follow, BioNTech can quickly head back toward EUR 200. However, investors should be aware that new highs are rather unlikely for BioNTech.
If you consciously leave everyday life behind and focus on health risks, you will quickly realize how important innovative companies from the pharmaceutical and biotech sectors are. While the Fresenius share offers little perspective for the reasons mentioned, BioNTech appears to be on the rise despite being a dividend aristocrat. Defence Therapeutics could also offer great opportunities due to its low valuation and the numerous prospects surrounding its patented Accum™ technology.
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.
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.