15. November 2021 | 10:50 CET
Valneva, XPhyto, NanoRepro - Here we go again
Although around 67.4% of the population in Germany is already fully vaccinated, the infection figures are rising to unprecedented heights. The fourth wave with the highly contagious Delta variant is rolling across the republic. This development must be stopped as quickly as possible. In addition to booster vaccinations, politicians are therefore reintroducing citizen testing as a tool against the spread. For diagnostics companies and providers of rapid tests, this means a boom and further increases in earnings, likely to be reflected in stock market valuations in the near future.
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ISIN: VALNEVA SE EO -_15 | FR0004056851 , XPHYTO THERAPEUTICS | CA98421R1055 , NANOREPRO AG | DE0006577109
Fourth wave at NanoRepro
NanoRepro AG, based in Marburg an der Lahn, Germany, is again experiencing a significant increase in demand for reliable rapid tests due to the renewed sharp rise in SARS-CoV-2 infection figures. The stock market already celebrated the special economic situation last week with substantial increases. From a low of EUR 7.0, the share price rose to a weekly high of EUR 9.50 by Friday evening. Investors were also increasingly willing to buy after the close of trading. No wonder, after all, the quick test shelves at the discounters were literally swept empty. Therefore, it should come as no surprise if this highly volatile stock again attacks the highs for the year above EUR 20. There is unlikely to be an end to the demand for rapid tests until the second quarter of next year.
Meanwhile, the diagnostics company reports that due diligence on the potential integration of Viromed Group businesses is expected to be completed by the annual general meeting on December 22, 2021. NanoRepro AG is using the process, which is still ongoing due to the complexity of the Viromed Group's three business areas, VitaLab, terraplasma and vitabook, to examine the option of meaningfully supplementing or expanding its product portfolio in order to be able to continue the Company's positive development in the next few years after the COVID-19 pandemic and the demand for corresponding rapid tests have subsided. The stock is likely to remain in the spotlight in the coming weeks.
XPhyto with pioneering work
The demand for PCR or rapid tests could rise to new, unimagined heights in the coming months. Profiting from the estimated USD 40 billion rapid test market is likely to be life science accelerator XPhyto. The Company focuses on investing in next-generation drug delivery, diagnostics and new pharmaceutical compounds. The Canadians are in the right place at the right time with the Covid-ID Lab developed in collaboration with Stuttgart-based 3a-diagnostics GmbH, in which XPhyto already has an option to buy.
The advantage of the COVID-19 RT-PCR test system "Covid-ID Lab" is that results are delivered within 20 to 25 minutes, as prior RNA extraction as part of sample preparation is not required here. That puts the product between disposable antigen tests and centralized, automated PCR systems. Especially at airports, medical care facilities and pharmacies, the product is likely to be used preferentially.
In the next growth and development phase, Prof. Dr. Thomas Beckert will be appointed Managing Director of XP Diagnostics GmbH to lead XPhyto's business in Germany and accompany the integration of 3a-diagnostics GmbH. In addition, XPhyto will launch a non-brokered private placement and unsecured convertible notes. As part of the offering, the Company has agreed to a non-brokered private placement of up to 5,000,000 common shares at a price of CAD 1.00 per share for gross proceeds of up to CAD 5 million. In addition, the Company discussed the issuance of up to CAD 2.5 million of 8% unsecured convertible debentures and 2 million common share purchase warrants. The proceeds are to be used for research and development, inventory purchases, general working capital purposes and the closing of the announced acquisition of 3a-diagnostics.
XPhyto is developing a broad range of diagnostics and active pharmaceutical ingredients, including infectious disease and oral health tests, and standardizing new active pharmaceutical ingredients for neurological applications, including psychedelic compounds and cannabinoids, in addition to the Corona test discussed. Given the correction in recent months and strong demand for testing in the wake of SARS-CoV 2, investors should take a closer look at this Company.
Is Valneva reaching a new target group?
Good news for the unvaccinated, who were previously skeptical about the administration of a Corona vaccine and, in particular, strongly opposed mRNA vaccines from BioNTech/Pfizer and Moderna. The reluctance to administer such a vaccine is the belief that such vaccines could alter the genetic makeup of cells and cause damage. In addition, the uncertainty of the preparation due to its rapid approval and novelty was criticized from the same corner.
The introduction of the dead vaccine from the Austrian-French Company Valneva should make it easier for those who are undecided to go to the vaccination center or family doctor. Thus, the European Union may purchase up to 60 million doses of a possible Corona vaccine. The EU Commission formally approved a contract for 27 million doses next year. Another 33 million doses can be purchased if desired in 2023, according to the Brussels-based agency. However, approval is still a prerequisite, the procedures for which are to be started soon. In Great Britain, the approval process has already begun, and approval is expected this year in the best-case scenario.
While the stock market celebrated the news with the most significant price jump in the still young stock market history of Valneva, the analysts of First Berlin put on the euphoria brakes. They calculate a sales explosion from currently EUR 103.1 million to EUR 805.9 million in 2022. However, the experts' model includes the recently completed capital increase. Accordingly, First Berlin lowers the price target of Valneva to EUR 23.40 and assigns the rating "add".
The fourth wave is rolling through Germany. In addition to initial and booster vaccinations, reliable tests in particular help to counteract the negative development. NanoRepro and XPhyto are likely to benefit from increased demand for tests. Valneva could shake up the group of vaccination skeptics.