Benefit from the biotech boom: Why Evotec, BioNxt Solutions & BioNTech could be the next winners

Evotec – Strategic focus despite complex market dynamics

Evotec is working consistently this year to sharpen its strategy. Following a comprehensive strategy review, the company is focusing more strongly on its core competencies in order to return to its growth path. It is doing so by focusing on two pillars: "Shared R&D" for industrial drug discovery and "Just – Evotec Biologics," which specializes in the development and production of protein therapeutics. The Company generates revenue from research services, milestone payments, and license fees.

The 2024 fiscal year showed mixed results. Total revenue rose moderately by 2% to EUR 797 million, driven by a significant increase in the Biologics segment, which grew by 71% to EUR 185.6 million. The traditional Shared R&D business, on the other hand, suffered from the caution of major pharmaceutical partners. Adjusted EBITDA declined to EUR 22.6 million. The cost reduction program "Priority Reset" is expected to generate annual savings of over EUR 40 million. For the current year, Evotec expects revenue to jump to EUR 840-880 million. In the medium term, management aims to achieve an average annual revenue growth of 8–12% by 2028, with a target EBITDA margin of over 20%.

Evotec is driving its growth through strategic alliances and technological innovation. The partnership with Bristol Myers Squibb in targeted protein degradation and the collaboration with Sandoz in biologics have been expanded. New research agreements with Pfizer and Novo Nordisk strengthen the Company's presence in growth areas such as metabolic diseases and cell therapies. The Company is also positioning itself as a pioneer in animal-free methods and welcomed the new FDA roadmap in this area. Due to its low market capitalization of around EUR 1.3 billion and a share price of EUR 7.398, latent takeover speculation could boost the share price.

BioNxt Solutions – New approaches to drug delivery

Canadian biotechnology specialist BioNxt Solutions is focusing on novel methods of drug delivery. With thin-film technologies such as sublingual films and transdermal patches, the Company specifically addresses therapeutic problems in neurological autoimmune diseases. Its approach of making active ingredients more efficiently available and increasing patient compliance is particularly convincing. Its transatlantic structure with locations in North America and Europe enables strategic market development on both continents.

The focus of development is on a sublingual cladribine film for multiple sclerosis (MS). This addresses a critical problem. Nearly 40% of MS patients suffer from swallowing difficulties, which makes conventional tablets less effective. The global MS market offers enormous volume. BioNxt is also working on a similar solution for the rare disease myasthenia gravis (MG). This project already has orphan drug status, which ensures extended patent protection and market exclusivity. Recent successes include patent grants from the European Patent Office and the Eurasian Patent Organization for the core technology. Integrating research activities into a modern laboratory in Munich at Gen-Plus GmbH & Co. KG also strengthens development capacities and opportunities for cooperation.

BioNxt benefits from clever regulatory and operational approaches. Since cladribine is already approved as an active ingredient, the Company only needs to conduct less expensive bioequivalence studies for its film product – a decisive time and cost advantage over costly new approvals. Through the integration of German company Vektor Pharma TF GmbH, BioNxt also has its own specialized production capacities for thin-film systems. This combination of protection and efficiency paves the way for market launch. The share price has been on the rise since the beginning of April and is currently trading at CAD 0.56.

BioNTech - Strengthens oncology focus through strategic acquisition

Mainz-based biotechnology pioneer BioNTech is consolidating the German mRNA sector with the planned acquisition of CureVac. The transaction values the Tübingen-based company at around USD 1.25 billion. CureVac shareholders will receive BioNTech American Depositary Shares in exchange, giving them a 4-6% stake in the merged company. Both companies are combining complementary technologies in mRNA design and cancer therapy development. The deal, which is expected to be completed in 2025, is supported by the main shareholder and is intended to strengthen BioNTech's position as an oncology innovator without impacting short-term share price performance.

In parallel to the acquisition, BioNTech is deepening its collaboration with Bristol Myers Squibb (BMS) for the antibody candidate BNT327. The bispecific compound targets PD-L1, and VEGF-A is in advanced clinical trials for lung cancer. The 50:50 risk-sharing model includes an upfront payment of USD 1.5 billion plus a share of development costs. The planned Phase 3 trials in breast cancer are scheduled to start by the end of the year. The alliance will leverage BMS' global presence to evaluate the promising candidate more broadly and accelerate its market launch.

BioNTech's ongoing portfolio expansion is also reflected in regulatory progress. Together with Pfizer, it has applied to the EMA for approval of a seasonally adapted COVID-19 vaccine. Clinical data presentations at the ASCO meeting also underscore progress in mRNA immunotherapies and antibody-drug conjugates. With over 20 active Phase 2/3 studies, the Company is strategically diversifying away from pandemic-related revenues toward a broad oncology portfolio. After a brief surge to EUR 110.90, the stock is currently consolidating and can be bought for EUR 91.65.

The biotech sector offers unique opportunities for investors who identify innovation leaders early on. Evotec is driving its profitable growth forward with strategic alliances, including Bristol Myers Squibb and Pfizer, and cost reductions, while its low market capitalization is fueling takeover speculation. BioNxt Solutions is revolutionizing drug delivery with patented films for neurological diseases and is leveraging regulatory shortcuts for efficient market launch. BioNTech is consolidating its oncology leadership through the planned acquisition of CureVac and its deepened cooperation with BMS, while strategically diversifying its portfolio with over 20 clinical trials. These companies combine strong patents, smart partnerships, and technological pioneering work - the basis for robust future earnings.