XPhyto, BioNTech, MorphoSys - The next price wave is coming!

XPhyto Therapeutics - Huge addressable market

This German-Canadian bioscience accelerator focuses on next-generation drug delivery, diagnostics, and new active pharmaceutical ingredients. This diversified approach includes precision transdermal and orally dissolvable drug formulations, rapid and cost-effective testing for infectious diseases, and standardization of new pharmaceutical agents for neurological applications, including psychedelic compounds and cannabinoids. XPhyto has research and development sites in North America and Europe, with an operational focus in Germany, and is currently focused on regulatory approval and commercialization of medical products in Europe.

Operationally, the business segments are represented by the two wholly-owned subsidiaries, Vektor Pharma, 3a-diagnostics and XPhyto Laboratories. Following the approval of a PCR rapid test method in December 2021, XPhyto had, in the meantime, strongly concentrated its sales activities given the market potential here.

Current research is in the areas of transdermal and orally dissolvable drug formulations. Most recently, the results of a human bioavailability study conducted in Europe for the rotigotine TDS product were reported. The rotigotine patch is based on the TDS platform technology developed by the German subsidiary Vektor Pharma. According to expert estimates, the volume of the skin patch market is expected to grow to around USD 20 billion by 2028. Following the slide in the share price over the past 12 months, the stock has nearly tripled in value and currently has a market capitalization of only CAD 61 million.

BioNTech - Bulging coffers secure lead

In a few weeks, the Mainz-based company will publish the results of ongoing clinical trials on the efficacy and safety of various Corona vaccine candidates adapted to the Omicron variant. Following that, the relevant authorities would determine the procedure for the approval process based on these data, the Company said. CEO Sahin said the Company had an order backlog of about 2.4 billion doses as of the end of April. Its 2022 sales guidance is EUR 13 billion to EUR 17 billion. The federal government has ordered a vaccine adapted to the Omicron variant from BioNTech but also from Moderna for the fall.

The Mainz-based company is in a comfortable position thanks to last year's windfall, with profits of around EUR 10 billion generated, and its positioning as an expert in mRNA technology. Further development of the existing COVID-19 vaccine and the development of "next-generation" vaccines remain central to the strategy. However, the Mainz-based company wants to push mRNA technology-based research concerning autoimmune diseases, cardiovascular diseases, and regenerative medicine.

MorphoSys - Investors need to be patient

The biotech company is focused on the development of drugs acquired in last year's takeover of Constellation Pharmaceuticals. That was reflected in a Q1 loss of around EUR 123 million, almost triple the figure of the same period last year.

In addition, the Company's own drug Monjuvi is of great importance. At the moment, the Southern Germans are conducting three approval-relevant test series with Monjuvi as well as with Pelabresib. The Company plans to report on current data in the next few days. The drugs mentioned address forms of blood cancer that are difficult to treat. Investors who invested in the stock a year ago are sitting on losses of around 70%. Patience is an investor virtue.

Health care stocks have excelled as suitable investments over more extended periods. The pioneer of mRNA technology, BioNTech, has the potential in the medium term to use its know-how in fields such as cancer treatment. MorphoSys is also betting on the cancer therapy field. However, given high investments and losses, time is working against the Southern Germans. XPhyto has many arrows in its quiver and is worth a closer look due to its diversified portfolio and the Company's valuation of around CAD 60 million.