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Dhe war has prompted stock markets to flee risky investments, including biotech stocks. Valneva bucked the trend with positive phase 3 data for the chikungunya vaccine, but the gains failed to erase the losses of the previous few days. Chikungunya is a painful tropical disease similar to dengue fever that is transmitted by mosquitoes. Their frequency is increasing, about a quarter of all infections are severe.
Valneva’s vaccine provides good protection with just one injection, while competitors Merck & Co. and Emergent Biosolutions are lagging behind in terms of both time and quality. Valneva is therefore waving a “voucher” for preferential approval upon FDA approval, which the company can resell for 100 to 150 million dollars. The vaccine could reach sales of up to $220 million a year.
Sanofi intends to invest around one billion dollars in mRNA technology by 2026, with a focus on improving shelf life and reducing side effects. Investors also responded positively to BioNTech and Regeneron expanding their collaboration on cancer therapies. It’s about Regeneron’s drug Libtayo, which was co-developed by Sanofi.
Notice of Conflicts of Interest:
The majority owner of the sole shareholder of Finanzen Verlag GmbH, Mr. Bernd Frtsch, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that can benefit from any price development resulting from the publication: BioNTech, Curevac, GlaxoSmithKline , Novavax, Pfizer, Valneva.
INVESTOR INFO
The French-Austrian biotech company has specialized in the production of dead vaccines in the traditional sense, which contain inactivated pathogens. The main target group has so far been long-distance travellers: two vaccines against cholera and Japanese encephalitis have been on the market for years. In addition to the Covid vaccine, which is believed to have a market niche, the Chikungunya and especially the Lyme disease vaccine (in partnership with Pfizer) are future growth drivers. For a company of this size, these are solid prospects. Small-cap fans with a longer investment horizon grab it.
When there are strong fluctuations and a mood of crisis on the stock markets, investors like to resort to defensive investments. Equities from the healthcare sector are considered to be such. In addition, many fund managers and asset managers have pharmaceutical stocks on their list of favorites because they see cheap valuations, solid growth rates and catch-up potential there. The Xtrackers MSCI USA Healthcare ETF offers a cost-effective opportunity to participate in the development of the largest pharmaceutical, medical device and health insurance companies in the USA. However, most of the 82 US companies in the portfolio (e.g. Pfizer) are also globally active.
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