Close menu




February 16th, 2022 | 10:59 CET

Valneva, Cardiol Therapeutics, Pfizer - Great opportunities after setbacks

  • Biotechnology
Photo credits: pixabay.com

First, vaccine maker stocks were pushed down by fears of a pandemic ending by the Omicron variant. Add to that a nervous and challenging market environment that has to deal with interest rate hikes and inflation. Late last week, news that Russia's invasion of Ukraine was imminent added further worry lines. All of this is weighing on the markets, but these setbacks also offer investors opportunities. Today, we analyze three turnaround candidates in more detail.

time to read: 4 minutes | Author: Armin Schulz
ISIN: VALNEVA SE EO -_15 | FR0004056851 , CARDIOL THERAPEUTICS | CA14161Y2006 , PFIZER INC. DL-_05 | US7170811035

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

     

    Valneva - Waiting for the breakthrough

    The French biotech company Valneva has developed an inactivated vaccine against Corona. Currently, the Company is waiting for approval in the EU, the UK and Bahrain. Valneva is the only manufacturer to have an inactivated, adjuvanted whole-virus vaccine candidate in clinical trials in Europe. It is a unique selling point that could pay dividends if the active ingredient is approved. Politicians are still trying to convince people who refuse to vaccinate to get vaccinated; they could succeed with Valneva's active ingredient VLA2001.

    Preliminary laboratory studies show that three doses of the active ingredient can neutralize the Omicron variant. The serum samples showed antibodies against all known virus variants and in 87% of the cases against Omicron. Operationally, things are going well. As evidenced by the figures presented on February 3, 2021, sales increased 216% to EUR 348.1 million. As of December 31, cash on hand was EUR 346.7 million. For 2022, management projects total revenues between EUR 430 million and EUR 590 million.

    There was also good news from the development pipeline on February 4. Positive study results were announced for the Lyme disease vaccine candidate VLA15, which is being developed in cooperation with Pfizer. The clinical phase 3 trial is expected to start before the end of this year, provided that the approvals are granted. The stock is currently trading at EUR 14.70, down 50% from its 2021 year high of EUR 29.70. If the news of the approval of the Corona compound comes, the stock will jump quickly.

    Cardiol Therapeutics - End of study approaching

    Corona infections can cause myocarditis, but there are also a small number of myocarditis cases after Corona vaccinations. Cardiol Therapeutics (Cardiol) is developing anti-inflammatory therapies for cardiovascular diseases based on highly purified cannabidiol. CardiolRX, Cardiol's lead product, is currently in two separate Phase 2 clinical trials. It was started with the LANCER study in hospitalized COVID-19 patients with pre-existing cardiac conditions. As of October 25, the biotech has FDA approval for the Phase 2 clinical trial in acute myocarditis.

    At the end of 2021, the LANCER study was expanded to include Brazil, Canada, and Mexico, indicating that the USA studies are going well. Raymond James analyst Rahul Sarugaser expects the trial to be completed in the next 2 months. If the trial is successful, emergency approval by the FDA for COVID-19 patients could beckon. This would be a milestone for the Company and could also positively impact the second clinical trial in acute myocarditis, the most common cause of sudden cardiac death in people under 35 in the US. On January 19, it was announced that it had recruited three specialists and thought leaders in cardiovascular medicine to join its scientific advisory board.

    Financially, the Company is in a good position since the USD 50.2 million capital increase last November and can easily fund the studies. On October 20, the stock, which trades on the Nasdaq, had still marked its 2021 high at USD 4.96. After that, the share weakened and fell to USD 3.41. Subsequently, the capital increase announcement came, and the share halved again and is currently quoted at USD 1.70. A bottom currently seems to be formed at this point. On February 17 at 3pm, CEO David Elsley will present the Company at the virtual International Investment Forum and answer investors' questions.

    Pfizer - Covid pill approved in China

    Pfizer partnered with BioNTech to grab a piece of the Corona pie. But just like the vaccine makers, the Company has suffered from possible endemicity from Omicron. However, since we will likely have to live with the virus going forward, money will continue to come to Pfizer. Most notably through the COVID-19 pill, called Paxlovid, that Pfizer has developed. China has passed on all foreign agents but now, for the first time, has approved a foreign product against Corona with the COVID pill. BioNTech's mRNA vaccine has not been approved for more than a year.

    As positive as the news about the approval of Paxlovid is, the most recent announcement that the development of Vupanorsen will be discontinued is terrible. The Company hoped to generate at least USD 3 billion in annual sales from this drug to reach its USD 15 billion sales target. The drug's efficacy was not high enough. Nevertheless, the group has other promising candidates in development and will acquire other companies, such as Trillium Therapeutics, last year.

    On February 15, the FDA will consider emergency approval of the Comirnaty vaccine for children 6 months to 5 years old. If approval comes, it will further strengthen profits in the Corona market. Since December 20, the stock has lost more than 20% at its peak and is currently trading at USD 49.80. The share should not trade lower, as otherwise, the upward trend would be broken for good. The next target would then be around USD 41.


    Even if the experts see a possible end to Corona, the virus will remain with us, similar to the flu. What the next variants will be like, nobody knows. Valneva may be able to capture the market of vaccine skeptics for itself if approval is successful. Something may happen here in the short term. In the case of Cardiol Therapeutics, many things are reminiscent of the first capital increase in 2021, when the share price was subsequently also below the price of the capital increase, only to suddenly explode. Positive study announcements can be a trigger here. Pfizer is broadly enough positioned to generate profits even without Corona. However, the smallest price jumps are to be expected here.


    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

    Armin Schulz

    Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.

    About the author



    Related comments:

    Commented by André Will-Laudien on February 20th, 2024 | 07:30 CET

    Takeover fever in the biotech sector! Will MorphoSys now be followed by Defence Therapeutics, Evotec and Bayer?

    • Biotechnology
    • Pharma
    • Innovations

    It has happened: Novartis is bidding for MorphoSys. Once again, a long-lasting and persistent rumour mill eventually confirms itself. Those who remained loyal to MorphoSys despite heavy selling last fall have now made a profit of over 300%. If we turn the analytical magnifying glass on the sector, we can see that the speculative biotech stock market segment has started to move again since the challenging year 2023. Hopes of falling interest rates in the near future, along with several other M&A hopes, have led to steady inflows into listed bio-ETFs, resulting in fund managers having recently adjusted their weightings upwards. We analyze which stocks are currently making the loudest noise.

    Read

    Commented by André Will-Laudien on February 16th, 2024 | 07:00 CET

    MorphoSys and Cardiol Therapeutics in upward mode, while Bayer and Pfizer are in slow mode

    • Biotechnology
    • Pharma

    The biotech sector has made a very differentiated start to the new year. While the old favorites are barely moving, the second-line stocks MorphoSys and Cardiol Therapeutics are making a real splash. At Bayer, the bad news just won't go away, and despite a successful major takeover, Pfizer has not yet found its forward gear. After a rally of almost 15% in December, the Nasdaq Biotechnology Index (NBI) has taken a pause in the current year. Now, everyone is waiting for the first interest rate cut by central banks. Inflation is already falling, and the negative economic data for the Eurozone is increasing. The ECB would normally be in demand. What should investors urgently keep an eye on?

    Read

    Commented by Armin Schulz on February 12th, 2024 | 07:00 CET

    MorphoSys, Defence Therapeutics, Bayer - Biotech and Pharma suddenly back in focus

    • Biotechnology
    • Pharma

    Biotech ETFs have been on the rise since the end of October 2023. German biotech companies were able to raise more funds again last year. There are increasing signs that the tough times for investors in biotech and pharmaceutical companies are over. There is also growing activity on the takeover side. Most recently, the takeover bid from Novartis shifted the focus to companies in the healthcare sector. The Swiss pharmaceutical company wants to acquire MorphoSys for EUR 2.7 billion and thus fill up its oncology pipeline. We have selected three companies from the biotech and pharma sectors and examined their current situation.

    Read