January 26th, 2022 | 13:34 CET
Valneva, Perimeter Medical Imaging AI, MorphoSys - This is where it gets exciting!
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"[...] Since inflammation is a cause of heart failure, and heart failure in turn is one of the leading causes of death in the Western world [...]" David Elsley, CEO, Cardiol Therapeutics
Valneva - Omicron variant under control
The share of the specialty vaccine manufacturer has shown a wide range of fluctuation in recent weeks. The latest results on the vaccine's efficacy against the Omicron variant were encouraging. It was proven that with the administration of three doses of the vaccine VLA2001, the Omicron variant of COVID-19 could be neutralized. Share prices responded positively. Analysts also continue to see potential, with experts at Kepler Cheuvreux issuing a price target for the stock of EUR 24, an upside of over 60%.
Valneva focuses on the development and marketing of prophylactic vaccines against infectious diseases with a high unmet medical need. Prophylactic vaccines activate the immune system to protect against infectious diseases. The Company's inactivated corona vaccines are the focus of media interest. Application for approval has recently been made to the European Medicines Agency (EMA), and initial orders have been received. Inactivated vaccines have been used in medicine for a long time, e.g. against tetanus, whooping cough, diphtheria or as influenza vaccines, and are regarded as established. However, as yet, no inactivated vaccines have been approved as corona vaccines in the EU.
Perimeter Medical Imaging AI - Disruptive potential
Around 10 million people die of cancer worldwide each year. The fight against this insidious disease also costs over USD 1 trillion annually. Founded in Canada in 2013, Perimeter Medical Imaging AI delivers an effective and innovative approach to fighting cancer.
The medical technology company aims to transform cancer surgery with ultra-high resolution, real-time advanced imaging tools to address unmet medical needs. The Canadians' solutions enable examinations of tissue microstructures during surgical procedures using real-time, software-based visualization. This technology thus provides surgeons, radiologists and pathologists with important results during the examination that would otherwise take several days using traditional examination methods. It leads to improved results for patients, while representing potential savings for the healthcare sector.
To stem further growth, the Canadians conducted a capital increase of CAD 43.4 million in mid-December. Also, late last year, Perimeter announced the first commercial installation of its Perimeter S-Series high-resolution, real-time OCT imaging system at a North Texas hospital. With solid funding and great disruptive potential, the Company's current market cap of CAD 155 million makes it an exciting story.
MorphoSys - Money Cruncher
Three quarters! That is how much MorphoSys shareholders have lost in the last 12 months. The stock market value of the biotech company has thus dipped below the EUR 1 billion mark. At the beginning of the year, the stock was dealt a further blow in view of a disappointing revenue outlook and high planned expenditure on research and development. Even though many analysts believe the stock has significant upside potential, the experts are continuing to slash their price targets.
The South German company is in the process of reinventing itself and is currently undergoing a transformation from a contract researcher for the pharmaceutical industry to a developer of its own drugs. In this context, the Company completed the multi-billion dollar acquisition of US epigenetics specialist Constellation Pharma last summer. Royalty Pharma subscribed for shares with an equivalent value of EUR 100 million and will receive various royalties in the future.
MorphoSys is thus betting on the future and taking high risks in the coming years. According to management, the Company will not be back in the black until 2026, as milestone payments will be low, whereas research and development expenses will increase significantly, with EUR 300 to 325 million budgeted for 2022.
However, the sales expectation of the first proprietary cancer drug Monjuvi of USD 135 million in the current year, which was announced in January, disappointed many market participants. CFO Lee is nevertheless unabashedly optimistic and recently announced plans to launch two proprietary cancer drugs in 2025.
The healthcare market remains huge. The companies mentioned are targeting different areas. Corona is the topic of the hour, so vaccine manufacturers like Valneva are still in focus. Cancer detection and cure is a field with a high addressable market volume. MorphoSys should be treated with caution for the time being in the course of the transformation process. Major disruptive potential is offered by the solutions of Perimeter Medical Imaging AI.
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