Why Bianca Likes This German Stock Getting A Boost From COVID

Why Bianca Likes This German Stock Getting A Boost From COVID

over 2 years ago2 mins

Summary:

  • After a boost from its successful COVID-19 vaccine, BIONTech is flush with cash to spend on developing new therapies
  • The firm is a pioneer in the field of immunotherapies, where demand will only increase as scientists research more applications

Introduce yourself, Bianca

Berlin-based Solutions Architect and blockchain advocate, with a passion for financial education and empowerment of women.

What’s the pitch?

A long-term investment in the German biotechnology company BioNTech (ticker: BNTX). Demand for immunotherapies will increase as well as people‘s interest in treatments for diseases like cancer. The company has had an income windfall from COVID-19 vaccines that it can use to further its research and development efforts. Revenue in the most recent quarter was more than $2 billion, blowing past analysts’ expectations of $1.4 billion. 

What does BioNTech do?

BioNTech develops and manufactures active immunotherapies for patient-specific approaches to the treatment of diseases. It develops pharmaceutical candidates based on messenger ribonucleic acid (mRNA) for use as individualized cancer immunotherapies, as vaccines against infectious diseases, and as protein replacement therapies for rare diseases. It contributed toward the development of Pfizer’s vaccine for COVID as well.

What’s your three-point investment thesis?

  • The biotech industry will gain more popularity as developments in genomics progress.
  • BioNTech is a major player in this field, with funding available after the COVID-19 vaccine success – especially with the introduction of a third shot as a booster.
  • Biotech companies are overlooked at the moment, but this will change in the next couple of years.

What are the key events you’re watching?

  • The introduction of a third shot as a booster for COVID as new strains emerge.
  • Development of more therapies for cancer.
  • Long-term need for more COVID shots, similarly to flu shots.

What’s the upside potential if your thesis is right?

The validation of the thesis could provide long-term growth opportunities and transform the company into the biggest player in the biotech industry. 

What are the big risk factors you’ve spotted, and how do you plan to mitigate them?

The efficiency of therapies in clinical trials and problems with approvals and authorization. The company has validated its potential to mitigate such problems with the COVID vaccine and should also have funding available to start new campaigns if some of them are not working. 

Do you agree with Bianca’s reasoning? Leave your two cents here.

Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG