BioNTech billion-dollar deal a template for BioNxt Solutions? Bayer shares recommended as a buy!

BioNxt Solutions: Partnership and new all-time high soon?

Will BioNxt Solutions' stock break out of its sideways trend? The chances are good. The Company recently obtained a patent for Europe, bioequivalence studies for its lead product will start soon, and the billion-dollar deal between BioNTech and Bristol-Myers Squibb impressively demonstrates that Big Pharma is ready to invest.

One candidate for a partnership – and, given its low valuation, a clear takeover target – is BioNxt. The Company specializes in the development of advanced drug delivery systems. With its three platforms – oral dissolvable films, skin patches, and enteric-coated tablets – it focuses on key therapeutic areas such as autoimmune diseases, neurological disorders, and longevity.

BioNxt recently announced that the European Patent Office (EPO) has formally notified it that the core patent will be granted without significant changes. This core patent application covers the sublingual administration of cancer drugs for the treatment of neurodegenerative autoimmune diseases. The core patent allows BioNxt to develop and market a wide range of its own products. This includes the Company's current lead product, BNT23001. The melt film formulation is expected to significantly facilitate the treatment of multiple sclerosis with the drug cladribine. A bioequivalence study – which will test whether the melt film formulation works in the same way as the original cladribine – is expected to be conducted in humans shortly. With the core patent in place and the start of clinical trials, the timing would be right for a major pharmaceutical company to get involved.

The stock, which is actively traded on Tradegate, is attractively priced with a market capitalization of around EUR 40 million. In the first two months of this year, the share price roughly doubled to EUR 0.40. It then consolidated and is now trading at EUR 0.36 again. There is a good chance that the share price will exceed EUR 0.40 once the clinical trial begins. A partnership or even a takeover bid could push the share price even higher.

BioNTech: Analysts generally positive

What BioNxt is still working on has already become a reality at BioNTech: a billion-dollar deal with a major pharmaceutical company. Bristol-Myers Squibb (BMS) will immediately support the development of BioNTech's bispecific antibody candidate BNT327 in several solid tumor types, and if successful, the partners will share revenue and profits. In return, BioNTech will receive a total of USD 3.5 billion by 2028. Milestone payments could add up to USD 7.6 billion.

The share price reacted with a surge. However, after jumping from EUR 85 to EUR 110, it has slipped back below the EUR 100 mark in recent days. The majority of analysts reacted positively to the news. Jefferies, for example, sees the partnership as an opportunity for BioNTech to conduct even more combination studies in various indications. This would increase the chances of success. Risks remain, however, as a competing product has recently shown. The data for the drug developed by US company Summit Therapeutics and Chinese company Akeso were not convincing. The second phase of studies for BNT327 is expected to be completed in the coming months. At this stage, the chances of success are estimated at 50% to 70%. Jefferies has renewed its "Buy" recommendation and raised its price target slightly from USD 149 to USD 151.

As BioNTech will have lower development costs in the coming years, analysts at Berenberg have raised their earnings forecasts until 2027. As a result, the target price has also been raised from USD 130 to USD 150.

Of course, the deal will not only reduce development costs for BioNTech but also lower revenue and profit expectations if it is successful. From Deutsche Bank's perspective, the Company would have enough capital to carry out the development independently. Therefore, the analysts are not celebrating the partnership. They maintain their "Buy" recommendation with a price target of USD 140.

Bayer: Analysts upgrade to "Buy"

Those who bought Bayer shares at the beginning of the year have reason to celebrate. Since then, the DAX-listed company's shares have risen by 36%, outperforming the German benchmark index. Currently, more and more market participants believe that the legal proceedings in the US are more than fully priced into the stock.

Goldman Sachs recently made a positive statement. Looking ahead to the second half of 2025, the risk-reward ratio for Bayer is favorable - with the ongoing legal proceedings already factored in. As a result, Bayer shares have been upgraded from "Neutral" to "Buy." Analysts have also raised their target price from EUR 29.10 to EUR 33. In May, DZ Bank had already raised its target price for Bayer shares from EUR 30 to EUR 36. However, Goldman Sachs and DZ Bank remain in the minority with their "Buy" recommendations. The majority of analysts still advise Bayer shares as a "Hold". In hindsight, buying earlier this year would have paid off.

A billion-dollar deal like the one with BioNTech could soon be on the cards for BioNxt. It would be somewhat smaller, of course, but the share price will likely rise sharply nonetheless. Even without a partnership or takeover, however, the stock looks exciting. With the start of the clinical phase, it should break through the EUR 0.40 mark, clearing the way for further gains. Bayer shares have performed surprisingly well this year. This trend could very well continue. However, investors must be prepared for potential setbacks at any time due to the ongoing legal proceedings.