BioNTech: Take Chances of Recovery with Swiss DOTS

Shares of vaccine maker BioNTech appear to be coming back to life in the stock market. For those who believe that its price will rise again soon, Swiss DOTS is the best place to look for suitable loan products.

A year ago, it seemed like nothing could stop BioNTech’s share price. The price of shares listed on the US stock exchange NASDAQ jumped more than 40% in July 2021. In mid-August 2021, the stock price reached an all-time high of nearly $458. At that time, the capitalization of the biotech company from Mainz amounted to more than 100 billion dollars. This incredible surge began with the successful development of a vaccine against the coronavirus. Just six months after its launch, the BNT162b2 vaccine, marketed by BioNTech in collaboration with the American pharmaceutical group Pfizer, has surpassed the threshold of one billion doses delivered.

What seemed to be the beginning of a success story ended in a major disappointment in the stock market. From the summer of 2021, BioNTech shares began to fall sharply. Today, the value of the stock has been divided by almost three since its all-time peak. Due to the lull in health care, markets have largely ignored leading companies in the fight against the pandemic, such as the American vaccine maker Moderna and the Swiss pharmaceutical company Lonza. Still, BioNTech stock deserves some attention this summer of 2022. Many traders have no doubt kept her on their watch list. They will find at Swiss DOTS the right tools to create value in the short term. In June alone, active issuers on the OTC platform launched more than 80 leveraged products on BioNTech, but more on that later.

A new vaccine against COVID is ready to be launched

At the end of the semester, the long position would pay off. During the week, the BioNTech stock increased by 17%. News from the company partly explains this renewed interest. For starters, the Mainz company provided an update on the development of a new adapted version of its vaccine to combat the Omicron variants. In a phase 2/3 study, more than 1,200 people over the age of 55 received a fourth dose of the vaccine as a booster to test two different active ingredients.

A monovalent version of the new formulation was significantly more effective against Omicron BA.1 than the current BioNTech/Pfizer vaccine. The same positive results, although smaller, with the bivalent version. In the lab, BioNTech has already had success against the Omicron variants BA.4 and BA.5, which now cause most new infections. The results show that the corresponding mRNA vaccines can be effective here as well.

It is this latest discovery that should attract the attention of drug regulatory authorities. They really need to organize next winter and provide the population with effective vaccines. In the United States, the Food and Drug Administration (FDA) has already begun studying this new type of vaccine. Although the US authorities have not yet issued any authorization, the BioNTech-Pfizer tandem has already received new orders from Washington for a total of 105 million doses. “This may include an Omicron-adapted COVID-19 vaccine for adults,” BioNTech said in a press release. However, this would require FDA approval.

Capacity-building research

While this vaccine is now at the heart of its success, the company’s news is not limited to its continued development. On June 29, the company led by its CEO and co-founder Ugur Sahin also launched the “Innovation Series”. It’s a new format to reveal to analysts the firm’s future products, which are still in development, and to showcase in greater detail the research department, which currently employs more than 1,000 people. The 157-page presentation clearly demonstrates the enormous potential of this young company. There are currently no less than 21 clinical trials with active substances developed by BioNTech, and 17 product candidates are in clinical development. In addition, the company has recently moved into antibiotic research. Thus, during a virtual meeting, BioNTech announced its intention to use mRNA technology to combat antibiotic-resistant bacteria. Clinical trials should begin next year.

Convenient cash flow

To realize their ambitions, the management can count on a well-filled treasury. At the end of the first quarter of 2022, its liquidity amounted to more than 6 billion euros. This comfortable mattress is largely made possible by the profits made since the start of the first vaccination campaign against the coronavirus. Approximately 3.4 billion doses have been delivered so far (see graphics). Only in the first three months of this year, the results reached almost 3.7 billion euros. BioNTech, of course, has little chance of staying at this level. For 2022, its CEO predicts a turnover of 13 to 17 billion euros. In the previous financial year, this figure reached almost 19 billion. On August 8, investors will be able to find out whether the company is achieving its goals. It is on this day that Ugur Sahin will present the indicators for the second quarter.

2022.07.18.  BioNTech's revenue and earnings
Source: BioNTech – turnover and profit in millions of euros.

A smart investment

Although long predicted, weakening corporate momentum may have been the main reason for the correction in BioNTech stock. Added to this are more general doubts about the need for new vaccination campaigns against COVID-19. Recent increases in cases in many countries and new vaccine orders in the United States show that these campaigns are necessary. Therefore, the temporary increase in stocks is not surprising. If BioNTech’s price managed to break above its 100-day moving average, the broader trend remains bullish for now. To get out of this situation, the title will have to overcome the ceiling of $180. On the other hand, the $120 zone seems to be holding up well: the W-shaped share price has already experienced two lows there (“double bottom”).

2022.07.18.  BioNTech share price in dollars
BioNTech: share price in dollars. On average, more than 100 days.

Solid quarterly results, a positive outlook or new scientific breakthroughs could all be factors that could support the stock’s recent momentum. Investors looking to bet on a recovery may be interested in the mini-long future (value 119729376). This Vontobel stock, which currently offers a leverage of around 3.4, is one of the newcomers to the Swiss DOTS we mentioned earlier. For its part, UBS launched a slightly more aggressive mini-long OTC futures (value 119249949) with a leverage of 5.1.

Fans of lower BioNTech prices will also find their happiness at the Swiss DOTS. For example, with the new mini futures short (value 119729371) offering leverage of just over 9. The equivalent UBS security (value 119410544) has a leverage of 5.5. The rule is the same for all mini futures: as soon as the underlying asset does not move in the expected direction, disproportionate losses can accumulate. If BioNTech hits or breaks the stop loss, the product will expire and investors will have to settle for a low residual value.

About Swiss DOTS

Swiss DOTS is the first Swiss OTC trading platform for leveraged products. Aixtron is just one of the 90,000 investment ideas that you can trade every day from 8:00 AM to 10:00 PM at the bargain price of CHF 9 per transaction.