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Five European biotech and healthcare companies to watch in 2022


Many investors are turning to biotechnology and healthcare stocks as defensive plays as markets remain bearish and inflation picks up. Healthcare as a sector is always favoured as demand for it never lets up, even in the bad times. Many healthcare stocks are still offering decent values against their peers. In this snapshot we look at European biotech and healthcare companies with a market cap of more than USD 100m which we think still represent good value.

#1. Immatics (Germany – Biotechnology)

Immatics [NASDAQ:IMTX] is a clinical-stage biopharmaceutical company, focusing on the discovery and development of T cell receptor (TCR) based immunotherapies for the treatment of cancer in the United States. The stock has been sliding since September, but has rallied in recent weeks, and broken north of the Bollinger band on the technical charts. The company enjoys a wide network of strategic research relationships and is recognised for its genome editing expertise. At time of writing it had just announced a strategic research collaboration and licensing agreement with Editas Medicine, governing CRISPR technology and intellectual property. Watch for a possible resistance level around the nine dollar mark. If it breaks above that, things could get interesting.

#2. Apontis Pharma AG (Germany – Pharmaceuticals)

Apontis Pharma AG [ETR:APPH] markets and sells medical drugs for indication fields of internal medicine in Germany. It develops, promotes, and sells a portfolio of single pills and other pharmaceutical products with a focus on cardiovascular diseases, such as hypertension, hyperlipidemia, and secondary prevention, as well as respiratory diseases and diabetes. With a market cap of just EUR 113m it is just above the floor of our screen.  It is a benchmark performer for the sector, despite its size. Shares only hit the market last year, but we’ve been seeing something of a rally in recent weeks off the floor of EUR 10. The potential for this one is substantial and investors getting in at EUR 13 could still double their money if it gets back to where it was trading in September last year.

#3. Marinomed Biotech AG (Austria – Pharmaceuticals)

Marinomed Biotech AG [VIE:MARI] is a biopharmaceutical company which develops therapies for patients suffering from serious viral infectious diseases and autoreactive immune disorders in Austria, other European countries, and internationally. It operates through two segments, Carragelose and Marinosolv. The company develops Marinosolv, a technology platform that increases the bioavailability of hardly soluble compounds for the treatment of sensitive tissues, such as eyes and nose, and Carragelose, which consists of nasal and throat sprays, and lozenges for treating viral respiratory infections. Its last set of results were impressive,  with EUR 11.63m full year sales (EUR 8.12m the previous year). It is still operating at a net loss, but we expect that to reduce significantly in the next 12 months. The shares are not that liquid, and the share price has been dropping since it hit a peak of EUR 140, but the financials look excellent on this one.

#4. Biotest AG (Germany – Biotechnology)

The biggest of the companies in this review, Biotest [FRA:BIO] develops, manufactures, and sells biological medicines in Germany and internationally. It operates through therapy, plasma services, and other segments. The company offers its products in the haematology, clinical immunology, and intensive care medicine areas. It has a market cap of  EUR 1.6bn. It looks great when measured against peers in the European biotech space like Formycon and MorphoSys. Biotest appears likely to maintain its strong income statement metrics, especially EBITDA and revenue efficiency. The company’s management was effective in improving its EBIDTA, which now sits at -15.2 and represents a 23.2% change from the last reporting period. Positive news? Grifols SA bought a 45.8% stake recently from Tiancheng International Investment. Shares are down slightly from about EUR 39 at the end of last year; when you consider what the broader market has done since then, that’s impressive.

#5. MEDICLIN AG (Germany – Health Care Provider)

MEDICLIN [ETR:MED] operates hospitals in Germany through post-acute, acute, and other activities. It offers medical services in the areas of neurology, psychosomatics, orthopaedics, internal medicine, cardiology, oncology, geriatrics, psychiatry, surgery, nursing care, and others. As of December 31, 2021, it owned 34 clinics, 7 nursing care facilities, and 11 medical care centres with a total capacity of 7,831 beds and 482 nursing places in 11 German federal states. MEDICLIN released impressive Q1 results on 2 May. Specifically, their growth, value, and income factors indicate a well-planned and balanced effort, which is generating exciting growth. The stock came off a recent low of EUR 3.32 in April and has been trying to get north of EUR 3.50. There should be significant upside potential for the stock looking forward and scope for it to get back to EUR 4.25 of higher.

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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