April 15th, 2025 | 09:50 CEST
Bayer, BioNTech, Defence Therapeutics: The new biotech reality opens up opportunities
The pharmaceutical sector is exempt from US tariffs. But does that mean everything will be okay for the industry? During the German Biotech Days in Heidelberg, which took place last week, market experts were cautious. Following the layoffs at the US Food and Drug Administration (FDA), there are concerns among pharmaceutical companies and biotech firms that the US could lose its leading position in research and development. According to the researchers at the conference, Europe could step into the breach under certain conditions – however, partnerships with other regions remain crucial for continued progress.
time to read: 3 minutes | Author: Nico Popp
ISIN: BAYER AG NA O.N. | DE000BAY0017 , BIONTECH SE SPON. ADRS 1 | US09075V1026 , DEFENCE THERAPEUTICS INC | CA24463V1013
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Author
Nico Popp
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
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Biotech Germany is primarily convincing in basic research
To ensure that biotechnology remains a driver of growth and prosperity in Germany, the guest speakers at Biotech Days called for a reduction in regulation and bureaucracy. Heidelberg Lord Mayor, Prof. Dr. Eckart Würzner called on the German biotech landscape to accept the international competition for financing. Especially for smaller companies, competition from Australia, Switzerland, and Canada seems more agile. This is confirmed in discussions with researchers from Germany, who "have to fill out an application just to get five new pencils," as a professor from a major German university hospital put it bluntly in a background discussion. Partnerships with companies from other countries can help alleviate this issue and increase innovative strength.
BioNTech and Bayer rely on international partnerships
BioNTech's meteoric rise would hardly have been possible without international partnerships. As early as 2018, the Mainz-based company joined forces with Pfizer. At the time, they aimed to develop vaccines against influenza together – ultimately, the collaboration laid the foundation for the COVID-19 vaccine that became a cash cow for BioNTech. There are also close ties to the UK: BioNTech has entered into a significant collaboration with the UK Department of Health to establish a cancer research and development center in London. This collaboration aims to treat up to 10,000 patients with personalized mRNA cancer immunotherapies by 2030. The main advantages of the UK are the lower level of regulation and the speed of drug development. Another collaboration is in place with the Chinese company Fosun Pharma: BioNTech is providing its scientific expertise in the field of mRNA technology, while Fosun Pharma is contributing capital and its expertise in clinical trials, drug approval, production, and distribution in the Chinese market.
Bayer has also been increasingly relying on international cooperation for some time and is particularly keen to make headway in the fields of oncology, cardiovascular diseases, neurology, rare diseases, and immunology. To this end, it has set up the G4A Digital Health Partnerships Program to establish contact with start-ups worldwide. In addition to improved access to capital and risk diversification, the improved research conditions abroad are also important arguments here.
Defence Therapeutics convinces partners with biotech "multi-tool"
The Canadian biotech company Defence Therapeutics also seems to be a sought-after cooperation partner for pharmaceutical companies. The Company is active in cancer research and has developed a solution with its Accum™ technology that delivers active ingredients precisely to their target. Accum™ works with various molecules and is considered extremely flexible: In addition to various vaccines, the technology can also "piggyback" other substances and deliver them with pinpoint accuracy to diseased cells. This approach helps to reduce dosages, thus lowering the risk of active ingredients being deemed too toxic during Phase 1 trials. There is a collaboration with the French nuclear company Orano in the field of nuclear medicine. Given the wide range of applications for Defence Therapeutics' technology, the highly agile research team that is well connected with Canadian universities and the growing doubts about collaborations with the US, Defence Therapeutics could benefit from the current situation.
Comparing all three stocks over a six-month period, the Canadian biotech stock of Defence Therapeutics is ahead with a return of almost 60%. At BioNTech and Bayer, tariff fears and concerns about an economic downturn have led to losses of around 20% over the same period. The impressions from the German Biotech Days show that the international biotech world is reorganizing itself in these weeks and months. Corporations have to form partnerships in order to remain operational. As the US is becoming increasingly unpredictable and scientists see their freedom restricted, other regions, such as Canada or even Australia and Switzerland, could benefit. The current situation can create opportunities for smaller companies like Defence Therapeutics in particular.
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