A number of interesting IPOs have been postponed due to pandemics, including Wintershall Dea, Pepco and Vitesco. They will probably only be tradable in 2021. But fans of fresh stocks can still expect some exciting new additions. For example, it might be worth keeping an eye on CureVac and Exyte.
CureVac – hop or top?
The race for the best vaccine against the coronavirus is in full swing. Almost every day, reports about the progress of studies go around the world. A participation of Dietmar Hopp also pays off good chances. CureVac’s technology is so good that the U.S. regime would have loved to buy it. A public outcry, a controversial deal with the federal government, and a commitment to make a possible vaccine available worldwide initially calmed the situation.
Now the favor of the hour is being used to raise capital for business expansion. On July 24, CureVac announced to the US stock exchange regulator that it had requested the listing of ordinary shares on the Nasdaq Global Market under the symbol “CVAC”. The Tübingen-based company with a branch in Boston (Massachusetts) introduces itself to the savvy American investor audience in terms of biotech:
We are a global biopharmaceutical company that is developing a new class of transformative drugs based on messenger ribonucleic acid (mRNA) that has the potential to improve people’s lives. Our vision is to revolutionize medicine and open up new ways of developing therapies by enabling the body to make its own medicines. In cell biology, mRNA plays a central role in the production of proteins in every living cell. We are the pioneers in successfully using mRNAs to prevent infections and treat diseases by mimicking human biology to synthesize the proteins we want.
It almost sounds too good to be true. However, the astonishingly high rating of the similarly positioned BioNTech (WKN: A2PSR2) shows how high the chances for the successful use of mRNA are. CureVac also pursues various mechanisms and is primarily targeting cancer.
Source: CureVac Prospektus
But it is also clear that CureVac still has to invest a lot in research before the potential can be fully developed. In the first quarter of 2020, revenues of just 3.1 million euros were generated. The most important partner was so far Eli Lilly (WKN: 858560), whereby the cooperation that started in 2017 expired in June 2020.
For that is in July GlaxoSmithKline (WKN: 940561) jumped in to develop mRNA-based vaccinations and monoclonal antibodies against infectious diseases. In total, CureVac currently has around 15 active substances in the development pipeline:
Source: CureVac Prospektus
It becomes clear that there are two business models: in-house developments with worldwide sales rights and partner projects where only milestone payments and royalties are incurred. At the moment nobody can really estimate what all of this is really worth. If CureVac were successful in developing a COVID vaccine, the company could soon be promoted to the Champions League among biotech companies.
It should also be noted, however, that success with a respiratory virus does not yet guarantee that something will come out of the lucrative cancer therapies for CureVac. As a result, as is so often the case in this high-tech industry, the stock is a risky bet that only belongs in well-diversified portfolios.
Exyte – space for pure
No matter how much money CureVac is now collecting: Without production and distribution partners, the company will not be able to supply the world with hundreds of millions of vaccine doses. Part of the solution could be Exyte. The Stuttgart company was formerly known as the M + W Group and is currently owned by an Austrian investor.
Exyte should already be listed on the stock exchange in 2018, but investor interest was poor at that time. This may have changed now. In May, the company announced that it plans to build a modular bioreactor for vaccine manufacturing with Univercells. A month later came across Siemens (WKN: 723610) to contribute his energy management and automation expertise to the project.
With this quickly deployable, highly integrated solution, it should be possible to accelerate global production capacities. For me, that smells like a success story that should stir up the interest of investors. “Exyte will go public as soon as the market environment is suitable for it again,” the company writes. There is no fixed date yet, but it could be something else this year.
The “world market leader in the planning, development and construction of high-tech factories and plants” finally had more to offer and was very successful in 2019. So far, the main business has been with clean room technology for the semiconductor industry and related industries such as photovoltaics and energy storage. However, life sciences and data centers are growing in importance and have great potential.
With sales of around EUR 4 billion, an improved cost position and interesting growth opportunities, the company would be a clear MDAX candidate.
A difficult IPO year
Many deals were canceled or postponed. The pipeline is full of companies that would like to go public. However, those who have nothing to do with Corona or are not as uncyclical as, for example, a coffee giant JDE Peet’s (WKN: A2P0E9), he’d rather wait until light is visible at the end of the tunnel.
CureVac, on the other hand, gives Corona its big appearance on the global stage and even at Exyte it looks as if the topic could provide a new boost.
Another question is how attractive the terms of the new shares will be. Interested investors should get an idea of what these stocks could be worth in advance and only strike when the price is attractive.
The post 2 IPOs with COVID boost: Everything important about CureVac and Exyte appeared first on The Motley Fool Germany.
Ralf does not own any of the stocks mentioned. The Motley Fool does not own any of the stocks mentioned.
Motley Fool Deutschland 2020