Positive Analyst Voices: BioNTech is lighter to the market: BioNTech is working on other interesting projects in addition to the vaccine profit machine | News

On the stock exchange, however, initial enthusiasm for the German biotechnology company has diminished significantly, although analysts still see great potential. What the analysts say about the company and what the stock market does.

This is what is happening at BioNTech

According to the annual report for 2021, a surplus of over ten billion was generated, after a deficit of around EUR 180 million in the 2019 pre-coronary year. The money that came mainly from vaccination should also go to further research by the company. BioNTech chief Ugur Sahin does not rule out acquisitions. It is clear that BioNTech is not only a corona vaccine in the long run. Fighting cancer with mRNA technology has always been the goal of Sahin and his wife and BioNTech co-founder Özlem Türeci – even when Hexal founders and investors Thomas and Andreas Strüngmann were enthusiastic about their idea more than 20 years ago.

Vaccination was a baptism of fire for a technology that is not the only innovative class of drugs that BioNTech is working on. The company lists 20 research projects in clinical phase I or II and twelve preclinical research programs on its website. The company recently received special status of Promising Medicines from the European Medicines Agency (EMA) for testicular cancer Car-T cell therapy, which now means a simpler regulatory process.

However, in the future, the Mainz team should also be more interested in celebrating mRNA successes beyond Corona. For example, the company is currently working on suitable active ingredients for many solid tumors.

BioNTech is definitely not alone in this, the whole industry seems to be caught in mRNA fever and is building capacity. For example, the French pharmaceutical company Sanofi wants to invest € 400 million a year in mRNA vaccines and has continued to buy here recently. And suppliers like Merck and Evonik are also in the starting blocks and invest a lot of money in expanding production. There seems to be a lot of music on the topic, so stiff competition for BioNTech is inevitable.

Sahin also sees growing competition in biotechnology: “As a scientist, you will no longer be researching discoveries on your own, you must assume that this discovery has also been made elsewhere,” the head of BioNTech recently explained.

Meanwhile, BioNTech should reap the benefits of the pandemic for a while. Despite the summer, infections are on the rise and experts expect a difficult phase in the cooler season. It was only recently that the US government placed large-scale orders for a planned empowerment campaign from BioNTech and its US partner Pfizer.

However, manufacturers are struggling with the times, as not a single vaccination adapted to the omicron virus has yet been approved by the authorities – these are still being tested. It turns out that the virus has in the meantime produced a much more aggressive subline of the omicron variant that better tolerates vaccination protection.

Sahin therefore called for the approval procedure to be shortened in order to be able to bring an adapted vaccine similar to the flu vaccine to the market quickly and without additional research. But authorities rely on safety: for example, the US drug agency FDA has asked vaccine manufacturers to bring their vaccines, which are still adapted to the BA.1 subline – which is no longer circulating in Germany, for example – to the more up-to-date BA.4 and BA.5 and relevant clinical trials conduct research.

Meanwhile, BioNTech was recently confronted with a patent infringement lawsuit by its competitor CureVac. Courts must decide whether the allegations are true. However, since such lawsuits are more common in the industry, this is probably not an attempt by the Tübingen-based company to tarnish Biontech’s reputation, rather than digging into their bulging vaults. BioNTech has already denied the allegations.

This is what the stock does

If you overlay charts from Biontech and other vaccine makers like Moderna, Novavax, or Valneva, it shows that the movements are almost identical – no matter how many good or bad news about one company or the other appeared on the bars.

The vaccine hype provided suppliers with nearly all record results for the past year. But since the end of 2021, things have worsened as beliefs in a waning pandemic spread. Investor confidence also diminished as approval for tailored vaccinations was protracted. Only in the case of CureVac, which failed due to vaccination, did the price drop accelerate much earlier.

BioNTech shares peaked at $ 464 last August and have since lost almost three-quarters of their value at their peak. In late June, the stock had dropped to a provisional low of around $ 117. Also, as a result of US orders, it recently rose again to $ 170 – after all, that’s more than eleven times the October 2019 IPO issue price, which was $ 15 at the time.

The largest shareholders of BioNTech are still the Strüngmann brothers – twin billionaires who, along with the stock market success of the Mainz company, got rich, now slightly reduced their shares, still owning about 43 percent. 17 percent belongs to the head of BioNTech himself, Sahin, there are also many investment companies with smaller stakes in the company.

BioNTech has a market value of around $ 40 billion – $ 100 billion was broken last summer. Moderna’s competitor is currently worth nearly $ 70 billion.

Analysts say so

With all ten analysts recorded by dpa-AFX seeing upside potential for BioNTech stock, some industry pundits have recently even revised upward on their previously lowered price targets – mainly due to the US order. While there is no sale vote, most analysts stay aloof from a neutral vote. The three buy recommendations are again distinguished by relatively high target prices.

The leader here is Oddo BHF, bank experts believe that the paper may rise to $ 366. In contrast, the Expert Average Target Price is a good $ 243, which is more than 40 percent above the spot price.

Analysts mainly deal with the company’s research. According to analyst Olga Smolentseva of investment house Bryan Garnier, in the medium term it will focus on cancer in Mainz as the tailwind from Covid subsides. The expert is convinced that BioNTech has many opportunities to accelerate the development of drugs here. Therefore, he still recommends buying shares. A similar statement was made by Emmanuel Papadakis of Deutsche Bank, who sees that BioNTech has “matured”, especially in the field of cancer.

Chris Shibutani of Goldman Sachs emphasizes that the wide range of BioNTech products means, above all, opportunities for organic growth. However, it also points out that the Mainz-based company was looking for synergistic acquisition opportunities.

Meanwhile, BioNTech shares temporarily fell 0.55 percent to $ 165.56 in NASDAQ pre-market trading.

— Author: Tanja Vedder, dpa-AFX —

Selected leveraged products in BioNTech (ADR)With knockouts, speculative investors can disproportionately participate in price movements. Just choose the leverage you want and we’ll show you the right BioNTech (ADR) open products

The leverage must be between 2 and 20

No data

More news about BioNTech (ADR)

Image sources: Biontech, Thomas Lohnes / Getty Images

Leave a Comment