Almost exactly one year ago, the Mainz research company BioNTech dared to step onto the trading floor after twelve years of company history. The doctors chose the US technology exchange Nasdaq as the new home for their public shares. That’s what happened to BioNTech since then.
?? BioNTech with mixed market debut
?? Corona pandemic catapults companies into the spotlight
?? Broad portfolio ensures bright future prospects
It has now been almost exactly a year since the biotechnology company BioNTech made his stock market debut. A lot has happened since then. The global corona pandemic in particular has proven to be groundbreaking for the Mainz-based company. Where many other companies had to accept severe cuts, a great opportunity opened up for the research company – which the biotech company knew how to use.
From cancer research to corona hope
BioNTech actually specializes in individualized cancer therapy research. The company was founded in 2008 by Ugur Sahin, Christoph Huber and Özlem Türeci with the vision of being able to treat every cancer patient with a therapy tailored to their needs. However, the biotechnologists are pursuing a new approach: the patient’s immune defense is to be modified with the help of mRNA technology so that the natural defense system fights the cancer from within. The same principle also applies to infectious diseases such as the flu or HIV – or corona.
After the corona crisis grew and the call for a vaccination became louder worldwide, BioNTech has also committed to the search for a vaccine: “We feel it is our duty to use our technology and immunotherapy expertise to help to tackle the emergency caused by the COVID-19 pandemic. Our goal is clear: Make a potential vaccination available to the public as quickly as possible – worldwide, “said BioNTech CEO Ugur Sahin on the company’s website.
BioNTech IPO in October 2019 with moderate success
It is this research on a corona vaccine that put the Mainz-based company on the radar of investors in a very short time. Because while no one can avoid BioNTech when it comes to biotechnology, things looked a little different at the IPO in October 2019.
On October 10, 2019, the cancer researchers dared to take the plunge onto the trading floor. For this they chose the US technology exchange Nasdaq, despite their anchoring in Germany. The IPO itself was mixed: While the company had planned in advance to place a total of 13.2 million shares with a range of 18 to 20 US dollars, ultimately only 10 million papers of 15 dollars each could be distributed to investors. The biotech company achieved a valuation of 3.4 billion US dollars. The company was able to collect a total of $ 149 million.
The first day of trading in the BioNTech share was also mixed. The daily range was between $ 13.01 and $ 16.70. The paper ended up trading at $ 14.24, 13.7 percent below its initial price, which was $ 16.50. But interested investors can only dream of such prices today. Because entering the race for a corona vaccine gave the share a rapid rally.
Since the beginning of the year, the BioNTech share has so far gained a whopping 159.59 percent. The paper has now moved 486.33 percent away from its issue price (as of the closing price on October 8, 2020).
Corona changes everything
But the year since the IPO has not only proven to be a complete success for the share. Since the IPO, BioNTech has also been able to enter into many lucrative partnerships. The biotech company strengthened itself in January with the US cancer specialist Neon Therpeuticsto expand his T-cell therapy.
In March BioNTech announced for the first time that it was working with its Chinese partner Fosun Pharma on a COVID-19 vaccine. The report ultimately caused the share certificate to shoot up by almost 30 percent.
A little later, the announcement with the US pharmaceutical giant followed Pfizer Wanting to work more closely together to further advance corona vaccine research. At the beginning of September, the Mainz-based company announced an agreement with the German pharmaceutical manufacturer Dermapharm, who is to provide its production capacities for BioNTech when the corona vaccine is developed. In mid-September, the cancer researchers strengthened themselves with another acquisition. They bought the Swiss pharmaceutical heavyweight Novartis a production facility in Marburg to expand production capacities.
Important milestones provide tailwind
In addition to the collaborations, there were also important milestones in various studies by the cancer researchers. BioNTech announced just a few days ago that it was getting closer and closer to a possible market approval of the promising active ingredient BNT162b2 in Europe. The so-called rolling review process has now been initiated here. Previously, encouraging preliminary data had been recorded in pre- and early clinical studies. If the effectiveness of the substance can be proven with sufficient data, it is possible to obtain approval under conditions before the end of the usual one or two years, as the dpa reported.
The European Union also recognized the potential of the Mainz company and secured a loan of 100 million euros. According to BioNTech, the funds are to be used to expand their own product capacities. The biotech company is to receive another 375 million euros from the federal government as part of a special program in order to accelerate the financing of vaccine development.
Broad portfolio should ensure a bright future
But BioNTech’s strength is not just the progress made with the corona vaccine. Because with the biotech companies benefiting from the pandemic, it’s such a thing. If they actually manage to win the race to find a potent active ingredient, things should go uphill. But the bearers of hope can fall just as low if a competitor crosses the finish line in front of them. Here the Mainz-based company impresses with a broad portfolio. Because, as already mentioned, the research company has joined the fight against Corona, but that’s not the only iron that Sahin and his team have in the fire. After all, BioNTech specializes primarily in the treatment of cancer. However, the Mainz-based company knows how to use the newly gained attention for itself, as you can see from the numerous partnerships that have now been entered into and that will certainly prove to be useful even after the crisis. Martina Köhler / finanzen.net editorial team