April 27th, 2022 | 11:54 CEST
Where the sentiment is right: BioNTech, Defence Therapeutics, Amazon
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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.
BioNTech: What is still to come?
On a one-year horizon, the BioNTech share has a return of only 1%. This is all the more remarkable because the share price has risen by more than 100% during this period. Recently, more and more people have been saying that the pandemic has run its course and that demand for vaccines would therefore decline. Although the new relaxed attitude is making itself felt in supermarkets and at other events in Germany these days, there are also new warning signals. A Pfizer-funded study shows that the current BioNTech vaccine's protective efficacy against hospitalizations is 85% within the first three months but drops to 55% after that. The findings could lead to more younger people reaching for the fourth vaccination.
It was recently revealed that some vaccine doses were at risk of expiring this summer. Therefore, the new study situation is unlikely to generate additional sales for BioNTech. Looking ahead to the fall, however, demand could pick up again. An updated vaccine is expected then. Against the background of the then beginning cold season, the fourth prick would again be close at hand for many people. BioNTech's stock represents more than just a provider of Corona vaccines - mRNA technology is powerful and could also lead to breakthroughs in cancer. If so, BioNTech would finally have arrived in the biotech Olympus. Even if you ignore the price excesses of the past two years, the value remains in an upward trend. However, investors are not getting a bargain with the BioNTech share.
Defence Therapeutics: Patented drug enhancer as a multi-tool
Defence Therapeutics, on the other hand, is a different story. The biotech Company from Canada is also pursuing a platform approach and has several irons in the fire. The Company is working on antibody-drug conjugates (ADCs) and has presented impressive results. These ADCs are capable of amplifying active substances and delivering them directly into an affected cell. Defence Therapeutics' patented Accum™ technology is being used around vaccines against COVID-19 and HPV, as well as breast and skin cancer. Several Phase 1 studies are planned for this in the coming months. The conditions for a successful outcome appear favorable. "Such studies cost money. Given our encouraging results to date and the versatility of our technology, we are finding receptive ears in discussions with potential funders," said Dr. Moutih Rafei, Director and VP of Research and Development, Defence Therapeutics, in an interview.
Even without agents associated with Accum™, the technology appears potent: "Accum™ is very toxic. We found that cancer cells die when we inject the drug directly into tumors. At the same time, Accum™ provides synergistic effects with other existing therapies. Specifically, this means that Accum™ is effective against cancer cells on the one hand but also supports other known active ingredients on the other. Possible application areas include breast cancer and previously incurable brain tumors, so-called glioblastomas. The only important thing is that Accum™ can be injected directly into the tumors. There are already experts who can use active substances in such a targeted manner. However, we are still a long way from a concrete application of Accum™ in this way," says Rafei. Initially, however, Defence Therapeutics intends to focus on patients with breast and skin cancer. Collaborations with clinics are already in place for this purpose. Most recently, the Company also obtained another patent that provides additional protection for the use of Accum™ around vaccines. This should also reduce the risk of competitors copying the approach and increase the likelihood that the Company will find cooperation partners around individual areas of application or license its technology. The stock has come back in a similar fashion to BioNTech but is still in solid charting waters. Due to the Company's relative unfamiliarity and the fact that it has not yet reached market maturity, the risk-reward profile is much more pronounced.
Amazon: This success is timeless
When it comes to buying stocks that are booming right now, the Amazon share cannot be missed. While some pandemic stocks, such as Peloton or even Netflix, have recently gone under the wheels, Amazon has held comparatively steady. The reason: the business model works even after the pandemic. More and more people were already shopping online in 2019, and the pandemic has only strengthened the trend. Part of the pandemic exaggeration has been relieved by Amazon, which is now hovering between USD 2,500 and USD 3,000. The lower end of this range could offer interesting opportunities. There are many reasons for the stock: in addition to the timeless business model, the weakness of competitor Netflix could also be an argument for Amazon.
Whether biotech or retail, both sectors have a future, as long as entry into the respective shares is not too expensive. Timing always becomes a challenge when share prices are already pricing in a rosy future. That is most likely the case with BioNTech. As a market leader, Amazon is, of course, not cheap either. On the other hand, investors can seize opportunities in second-tier stocks that the market has not yet given an advance. One example of such a company is Defence Therapeutics.
Conflict of interest
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