Stock market: five biotech companies to keep an eye on

Destabilized by the Ukrainian conflict, European biotech companies fell by an average of 9.5% between March 1 and 8. In recent days, several of them have already announced results, financially or clinically, encouraging. Review of 5 Biotechs to Follow With Attention…and Caution.

The Russian invasion of Ukraine rocked markets and shook up biotech companies in the process. French companies in the sector thus lost 15.9% between the 1er and on March 7th… before gaining a little high again, on March 9th at the same time as most other market values.

In a financial context where the implied volatility of stock indices remains high, investing in the biotechnology sector is a balancing act reserved for experienced investors familiar with the clinical stages of drug production.

Interesting prospects

However, some of these companies have interesting prospects. In the stock market, betting on these highly speculative stocks can pay off big.

Overview of five biotech companies to watch closely while remaining very cautious.

Abivax

The Paris-based company has just announced promising Phase 2 results from its ABX464 for the treatment of rheumatoid arthritis, sparking the enthusiasm of markets that awarded the title nearly 13% on March 10.

ABX464, a multitasking drug specializing in the treatment of several inflammatory diseases, such as Crohn’s disease and ulcerative colitis, is expected to have a total market of €50 billion by 2026 – when Abivax hopes to launch ABX464 for ulcerative colitis, which will begin Phase 3 clinical trials this year.

Founded by former immunologist Philippe Pouletty, the biotech is considering a potential strategic partnership to develop in parallel its other product, ABX196, responsible for the treatment of hepatocellular cancer, which has not yet entered phase 2. This outlook solid, based on all the same on successful Phase 3 trials of the ABX464, could win the title.


Biophytis

An 80% drop in one year, the title Biophytis is neglected by investors. However, the biotech of genetic doctor Stanislas Veillet, who develops products that treat the degenerative processes associated with aging, has just been granted the right by the Brazilian health authority to treat certain patients suffering from a severe form of Covid-19 using of his Sarconeos, responsible for restoring the respiratory functions of the sick.

The same treatment is being evaluated in a Phase 2-3 trial in Europe, Latin America and the United States. The results are expected in the first quarter of 2022 and could foreshadow an uptick in action.


valneva

The Nantes specialist in infectious disease vaccines is the French biotech whose valuation has risen the most since its IPO.

The last few days the title has been valneva won 4.7% on 1er March after the approval of its inactivated vaccine VLA2001 in Bahrain, then 6.75%, on March 8, after announcing the success of the phase 3 clinical trial of its single-injection vaccine against chikungunya, VLA153.

Valneva must now apply for a marketing authorization from the FDA. With regard to VLA2001, Valneva has already reached an agreement with the European Commission to supply 60 million doses by 2023. The company expects to obtain European marketing authorization before the end of April.


Quantum Genomics

It is one of the biotech companies that benefited least from the recovery of the tech market on March 9. Quantum Genomics is developing firibastat, a drug that acts on the brain to treat high blood pressure, which has had good Phase 2 results against its competing molecule.

Jean-Philippe Milon’s biotech is simultaneously conducting two Phase 3 studies — one of which should deliver results in the first half of 2022 — and plans to apply for a marketing authorization in the US by the end of 2023. ask.

Importantly, Quantum has secured seven regional licensing agreements, including the most recent with Emirati lab Julphar and Israel’s Teva. Biotech is now looking for new partnerships with major European and American players to execute its promising Phase 3.

Currently under $3, Quantum Genomics stock could appreciate this year, propelled by a dense stream of news and potential partnerships.


advice

The title advice while it may have lost half its value since the beginning of the year, it could recover in the coming months. The lead product, Sibnayal, has received marketing authorization in Europe and the UK for the treatment of renal tubular acidosis. Advicenne estimates its target market at 30,000 patients, for a price of 10 to 11,000 euros per year and per patient.

The biotech has already signed a partnership with the Your Pharma Partner group, a pharmaceutical company that distributes treatments in 25 European countries. The capital increase implemented last year should enable Advicenne to operate until the first quarter of 2023.

The company said it is considering new funding sources. It should now focus on the countries of Southern Europe and the United States, two important markets that could give rise to new partnerships.

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