Close menu




July 21st, 2022 | 11:24 CEST

Time is of the essence! Bavarian Nordic, XPhyto, Valneva

  • Biotechnology
  • Covid19
Photo credits: pixabay.com

Resourceful investors always bet on corresponding stocks when new pathogens or disease patterns become known. BioNTech was one of the early movers in the case of COVID-19, but so were several other stocks that are now unknown again. Even for monkeypox, there have long been stocks that have profited - for example, the share of smallpox vaccine manufacturer Bavarian Nordic which recently rose sharply. We explain the hype around pharmaceutical stocks and outline where there could still be potential now.

time to read: 3 minutes | Author: Nico Popp
ISIN: BAVARIAN NOR NAM. DK 10 | DK0015998017 , XPHYTO THERAPEUTICS | CA98421R1055 , VALNEVA SE EO -_15 | FR0004056851

Table of contents:


    Bavarian Nordic breaks out!

    Yesterday, the Bavarian Nordic share surged toward the EUR 40 mark. Previously, the value had long hovered around EUR 30. What happened? The German-Danish manufacturer of smallpox vaccines announced a new order. Another 1.5 million doses of the vaccine Imvanex are to go to a European country. The Company had already received orders from the US and Canada, which should positively impact the coming fiscal year. In recent weeks and months, Bavarian Nordic has raised its guidance for the current fiscal year several times.

    If the new monkeypox business is not a one-off but also provides support for the coming financial year, this will be positive for Bavarian Nordic's share price - the share price was significantly higher a year ago and therefore has catch-up potential. Weeks ago, pharmacologist Dr Moutih Raffei commented on the danger of the new pathogen and urged hygiene measures: "Transmission from person to person is only likely if symptoms are present. In addition to weeping blisters and skin irritations, the classic droplet infection also plays a role. In regions where infections with monkeypox are likely, I advise the FFP2 mask," the expert said. With more and more cases, it is also likely that more countries will prepare for the danger and order vaccines. For Bavarian Nordic, that means a tailwind.

    XPhyto: Will the opioid epidemic in the US provide a breakthrough?

    A plague of a very different caliber is the abuse of opioids in the US. In 2019, the number of youth and adults with opioid use disorder was estimated to be between 6.7 and 7.6 million. The recognized medical condition is increasingly becoming socially explosive in the United States. Entire swaths of the country are scarred by the widespread addiction and its accompanying symptoms. In order to combat the addiction, drugs such as buprenorphine are used in the US. The National Food and Drug Administration (FDA) is now warning of the serious health consequences of these medications for opioid addiction. Because many of these drugs dissolve in the mouth, tooth decay, cavities, oral infections, and tooth loss can occur.

    Around the latter set of conditions, biotech company XPhyto has long positioned itself to offer several products for the diagnosis of oral and dental diseases, such as stomatitis, periodontitis and peri-implantitis, as part of its biosensor portfolio. Most recently, XPhyto announced plans to evaluate the ability of its products to diagnose concomitant symptoms of buprenorphine. XPhyto's biosensors are self-applying and inexpensive. Given the large number of potential patients in the US alone, XPhyto's products could see increasing demand. In addition to oral and dental disease, XPhyto is also developing biosensors around Group A Streptococcus, Influenza A and COVID-19, addressing a market that is expected to reach approximately USD 42 billion by 2027, according to market researchers such as Global Market Insights. XPhyto's stock is currently trading near its lows. However, if the Company lands a complete success with one of its products, this should change given the market capitalization of around EUR 22 million. The share is very speculative but also exciting.

    Valneva: Patience is needed here

    The development of Valneva shows that the path to success for biotech companies is sometimes rocky. A few weeks ago, the vaccine company announced the entry of Pfizer - the share price almost doubled. Many market participants sensed a complete takeover. But the excitement has died down, and the stock has come back significantly. And this is even though the EU approved Valneva's COVID-19 vaccine in the summer. Hopes are now pinned on the planned Lyme disease vaccine, which has prompted Pfizer to invest in Valneva. However, it will probably be some time before the results are published.

    Whether it is COVID-19, Lyme disease, monkeypox or the indirect effects of the opioid epidemic in the US - anyone who wants to invest in developing medical emergencies and back companies that are fighting these emergencies must have a good hand. Sometimes active ingredients do not even get off the ground; other times, the competition is faster. XPhyto may have found an interesting niche with its biosensors. If, in addition, a test is medically indicated because the drug authority warns of side effects, as is currently the case in the US, this could be the initial spark. The XPhyto share, therefore, belongs on every speculative watch list.


    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    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 also 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

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



    Related comments:

    Commented by Nico Popp on September 27th, 2023 | 07:10 CEST

    Rich as a Sheikh? Here is what's happening: Schott Pharma, BioNTech, Cardiol Therapeutics

    • Biotechnology
    • Pharma

    High-tech or add-on? When Schott Pharma's shares go public in Frankfurt on Thursday, investors are likely to have a clear opinion. The manufacturer of pharmaceutical packaging may be attracting significant interest precisely because its business model is clearly defined. But what sets Schott apart, and which companies in the pharmaceutical and biotech industry might also become interesting? We provide insights and deliver answers!

    Read

    Commented by Juliane Zielonka on September 22nd, 2023 | 06:50 CEST

    Cardiol Therapeutics, BioNTech, BYD - At top speed to new markets

    • Biotechnology
    • Pharma
    • Electromobility

    Cardiol Therapeutics is enjoying a remarkable development. The biotech company is now rolling out its ARCHER patient recruitment trial internationally at 35 participating centers. This accelerates research in the development of their therapy to combat myocarditis, a heart inflammation which has been associated with COVID-19 vaccination. For Cardiol Therapeutics, this represents an opportunity to get its therapy approved as an orphan drug. Approval is also at stake for BioNTech. With a multimillion-dollar funding boost, the Company is working on accelerated approval for a vaccine against a virus that caused quite a stir last year. The shortened development time is likely to impress investors. While business nations agree on fighting viruses, they disagree on commodities for the road. The EU would prefer to restrict BYD's successful sales on domestic roads - by imposing tariffs. BYD, meanwhile, is tapping into a completely different market.

    Read

    Commented by André Will-Laudien on September 18th, 2023 | 06:30 CEST

    Unbelievable! Hands off AI, biotech in rebound! Bayer, Defence Therapeutics, Morphosys

    • AI
    • Biotechnology
    • Investments

    The big fall decline is now over. It is always a difficult time, but the so-called "Triple Witching" went relatively smoothly this time. The European Central Bank (ECB), in its first interest rate meeting after the summer break, decided to raise key rates by another quarter point to 4.00%, up from the previous 3.75% in July. At the same time, it lowered its inflation forecast for 2025 and the outlook for economic growth in the Eurozone for the years 2023 to 2025. Economic risks are increasing, but inflation remains the determining factor for interest rates. Expectations that the US Federal Reserve (FED) will announce an interest rate pause at its next meeting on Wednesday have boosted confidence. Last week's big losers were the recently favoured AI stocks Nvidia, Microsoft and C3.ai. However, the biotech sector has recently started to climb again. Where are the opportunities for investors?

    Read