What’s Next for Evotec, BioNTech, Medigene and Bayer?

The biotechnology company BioNTech made big profits in 2021 and 2022 with its corona vaccine “Comirnaty”. So far this year, the track record doesn’t look too positive.

As reported, BioNTech started the 2024 financial year with a loss of 315 million euros. In the previous year there was a profit of 502 million euros. Sales collapsed from 1.27 billion euros in the first quarter of 2023 to 187.6 million euros.

BioNTech might loose over 400 million euros

Despite the decreased revenue from the corona vaccine, BioNTech continues to deliver adapted Covid-19 vaccines for the coming 2024/2025 flu season in accordance with the requirements of the WHO and the EMA. For the full year 2024, BioNTech therefore continues to expect sales of between 2.5 and 3.1 billion euros.

In 2026, BioNTech wants to bring its first cancer drug onto the market, as two studies are currently in late phase 3. A study on an active ingredient candidate against lung cancer has been running since June last year, and another active ingredient against breast cancer was added in 2024.

Analysts on the Refinitiv Eikon platform confirm the sales forecast at 2.8 billion euros, but expect a loss of over 400 million euros. With 16.5 billion euros in cash on hand, this is probably not an issue. Optimistically, 8 out of 18 analysts vote to buy, the average price expectation is 25% above the current price. Technically the BioNTech chart stabilizes around 85 euros.

Medigene is continuing its research activities with a successful capital measure worth around 5.9 million euros

According to the company, the proceeds will be used to fund operations and continue work toward clinical development of MDG1015. Medigene is an immuno-oncology platform company focused on the research and development of T-cell immunotherapies for solid tumors.

The end-to-end platform offers product candidates for both its own therapeutics pipeline and for partnerships. Medigene’s lead T cell receptor-modified T cell (TCR-T) program MDG1015 is expected to receive IND/CTA approval in the second half of 2024.

“We are very pleased to announce the completion of this financing round from Medigene. It is one of the first successful transactions of a listed small-cap biotech company in Europe and the only one in Germany in 2024. This oversubscribed capital increase has significantly strengthened our financial position.” said CEO Selwyn Ho.

“The proceeds will enable Medigene to advance the development of its differentiated TCR-T therapies while entering into new partnerships to extend its end-to-end platform to additional TCR-based modalities such as T cell engagers and TCR-T. “Expand natural killer therapies.”

With 29.475 million shares, the market capitalization of the Munich biotech company is now back to 42.8 million euros. The research houses HC Wainwright and Baader Helvea have published purchase studies with price targets of 3.00 euros and 2.35 euros, respectively. After raising funds, there will soon be a lot of news waiting for investors. Among the listed immuno-oncology companies, Medigene has been in business for a long time and yet has a low valuation. Interesting!

Bayer and Evotec – Does this already look like a turning point?

While Bayer was able to successfully rise above the 29 euros mark last week, Evotec is still struggling with its 40% fall to below 10 euros. With a current price of 9.54 euros, investors are now eagerly awaiting the new management’s statements about the first quarter and the rest of the year. The Q1 figures are expected for May 22nd, with analysts estimating a loss per share of 0.0667 euros on average.

The analysis house Warburg Research has initially lowered the price target for the Hamburg company from 25 euros to 18 euros, but left the rating at “Buy”. The experts identify major imponderables when the new CEO announces the measures of the upcoming restructuring program. New brooms usually sweep vigorously and remove the legacy of their predecessors so that new fruit can grow on the tree in the future.

Evotec is well positioned and runs many partner programs. The valuation recently fell to a three-year low. There is still a good risk-reward profile for speculative investors.

Bayer is still dealing with some glyphosate lawsuits. What is interesting, however, is that the last negative reports have no longer led to any sales. Only 5 out of 25 analysts would currently buy the stock if that wasn’t absolutely negative sentiment. We recommended initial positions at 27.50 euros, and now at just under 29 euros, long-term investors should add further positions.

__

(Featured image by  HakanGERMAN via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in INV3ST.de. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us