Mainz Biomed share: The history of Mainz Biomed – detecting cancer earlier with better diagnostics

• Mainz Biomed was formed in 2021 to acquire PharmGenomics and commercialize its product portfolio
• The main product is currently ColoAlert: a stool sample test for the early detection of colorectal cancer

• Successful IPO on NASDAQ in November 2021 and capital increase in January 2022

The acquisition of PharmGenomics GmbH

You don’t have to go far into the past to look back at the beginnings of Mainz Biomed. The young diagnostics company was only founded in 2021 with the intention of taking over PharmGenomics GmbH. PharmGenomics GmbH is a manufacturer of so-called in-vitro diagnostics (“IVD”) tests, which has developed several IVD tests for the European market since it was founded in 2008 and has its own molecular genetics laboratory. Mainz Biomed’s goal was to use the acquisition to commercialize PharmGenomics’ product portfolio in the US and Europe. The focus of the business is on the development of products for the early detection of cancer. The potential income in this area is quite promising. As Mainz Biomed writes in a report citing a forecast by Industry Arc, the market for the diagnosis and therapy of colorectal cancer alone is expected to grow to 31.2 billion US dollars in 2025. In 2019, this still amounted to 26.2 billion US dollars, which would correspond to a compound annual growth rate (“CAGR”) of three percent.

Fight colon cancer with ColoAlert

In order to be able to tap this great potential, Mainz Biomed is already active on the market with its product ColoAlert. ColoAlert is a stool test for colorectal cancer screening that uses PCR technology to detect non-bleeding tumors. According to Mainz Biomed, an early diagnosis is of great importance for the chances of recovery.
Around 62,000 people are said to be diagnosed with colon cancer in Germany every year. Many of those affected were only diagnosed at an advanced stage, which led to surgery, chemotherapy and a lower probability of survival. According to Mainz Biomed, however, the chance of recovery with early detection is greater than 95 percent. This makes better diagnostics all the more important. ColoAlert’s PCR technology detects 85 percent of colorectal cancer cases, even in the very early stages. In addition, the test can be carried out very conveniently from home, which lowers the inhibition threshold for a preventive medical check-up and increases the number of participants in the corresponding screenings. Instead of an invasive examination, patients can use ColoAlert to take their stool samples themselves in their own four walls and send them to the analysis laboratory. The result will then be communicated within a few days.

ColoAlert is still a young product, with which Mainz Biomed is already active in Europe. If you look at the direct competition, it becomes clear how high sales could potentially increase. According to the website sharedeals.de, the US company Exact Sciences owns a product comparable to that of Mainz Biomed, ColoGuard, and, among other things, achieved revenues of 280 million US dollars in its screening division in the third quarter of 2021. The potential of the business model is also clear in terms of company value. Exact Sciences recently had a market capitalization of more than 13 billion US dollars (as of February 10, 2022). According to company information, the company value of Mainz Biomed is now almost 180 million US dollars (as of February 9th, 2022).

The stock market debut on the NASDAQ

With this promising business model behind it, Mainz Biomed has already started on the NASDAQ in the USA. In November 2021, the young company ventured to go public on the US stock exchange and issued two million shares at a price of five US dollars per share with its IPO. The issue turned out to be a complete success. On the first day, the course climbed to around ten US dollars. Since then, the price has even risen to around 30 US dollars. In addition to the great potential of the company, the name “Mainz” may also have been responsible for the successful placement of the share. After the IPO of BioNTech and its development of the corona vaccine, the name of the state capital of Rhineland-Palatinate is still echoing through the trading floors in New York. According to sharedeals.de, Mainz Biomed also chose Boustead Securities, a reputable underwriter for small-cap IPOs. In 2021, Boustead is said to have achieved an average performance of plus 32.4 percent with all of its IPOs.

Buoyed by the sharp rise in the share price, Mainz Biomed seized the opportunity at the end of January and issued a further 1.5 million shares at an issue price of USD 15 per share as part of a capital increase. The company initially choked off the soaring share price, but was able to significantly increase its equity capital for the further development of its business. Further growth is announced for the future – both in the area of ​​colon cancer prevention and in other areas of activity. New products are already in the company’s research pipeline for expansion. For example, Mainz Biomed is already working on a product called PancAlert, which is designed to detect pancreatic cancer at an early stage. As the company announced in a press release, Mainz Biomed has recently entered into an agreement with Socpra Sciences Santé Et Humaines SEC (“TTS”) to pave the way to a successful future, giving Mainz Biomed access to the technology of novel mRNA biomarkers . The business development of the young Mainz high-flyer remains exciting.

Nicolas Flohr / Editor finanzen.net

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