BioNTech, BioNxt, Merck KGaA – Opportunities after the correction

Merck KGaA – Mega acquisition on the horizon

German pharmaceutical company Merck KGaA is currently in a buying mood. The Darmstadt-based company is reportedly on the verge of a billion-dollar acquisition in the US. According to company sources, final talks are underway with SpringWorks Therapeutics, a biotech company specializing in rare diseases and cancer.

The acquisition of SpringWorks would not only give Merck access to promising new products but also strengthen the Company's oncology pipeline, an area where weaknesses have recently become apparent. Merck had discontinued the development of its cancer drug Xevinapant, and an important clinical trial of the multiple sclerosis drug Evobrutinib had failed. According to Bloomberg Intelligence, SpringWorks could contribute up to EUR 1.5 billion to Merck's annual revenue in the medium term.

SpringWorks, which was floated on the stock exchange in 2019, specializes in rare cancers and genetic disorders. Following the announcement of the advanced takeover talks, the Company's share price rose 9% to USD 44.93 on Thursday. It had even traded at over USD 60 in February before the process stalled.

The purchase price is said to be around USD 47 per share, which corresponds to an enterprise value of around USD 3.5 billion.

BioNxt – Preparations underway

Investors who missed the first wave of growth are getting a second chance with the life sciences company, which focuses on next-generation drug delivery technologies, diagnostic screening systems, and the development of active pharmaceutical ingredients. After a sharp rise due to consistently positive news flow, BioNxt shares rose by over 260% between September last year and March to an interim high of CAD 0.60.

Due to the general market weakness that then set in as a result of the tariff hammer, the future-oriented company corrected to the significant resistance level of CAD 0.40 and could defend it successfully. Currently, a share certificate in BioNxt can be purchased for CAD 0.46. A sustained breakout above the downward trend established since April 2023, currently at CAD 0.59, would generate a fresh buy signal, which could push the share back up to its 2024 high of CAD 0.75 in the short term.

Recent announcements promise further upside potential. Management has indicated that preparations for its bioequivalence study in humans for its lead product for the treatment of multiple sclerosis (MS) are already well advanced. BNT23001, with its sublingual melt film, offers a revolutionary approach to treating MS that goes beyond the limits of oral therapies. In addition to being easy to use, direct administration also achieves a faster therapeutic effect.

Preclinical studies have already demonstrated high absorption rates and high bioequivalence compared to existing oral tablet therapies, based on internal research data and third-party evaluations. BioNxt has also acquired the active pharmaceutical ingredient cladribine, which is necessary to complete the technology transfer process with Gen-Plus, its European Contract Research and Development Organization (CRDO) in Munich, Germany. According to the Company's plan, the bioequivalence study is expected to last only 30 days.

In order to ensure maximum transparency, BioNxt intends to publish further updates on the preparations and timing of the bioequivalence study, as well as on the integration of its research and development activities with Gen-Plus. If significant progress is reported, a sustained break in the above-mentioned downward trend should only be a matter of time.

BioNTech – Crash at the weekend

With a loss of over 15% to USD 102.20, the German biotech hope ended the week on a low note, temporarily crashing to an intraday low of USD 93.85 at one point. No company-specific news was released; the reason was instead to be found at its counterpart Summit Therapeutics, whose share price even fell by around 40%.

According to the trade magazine Stat News, the US company reported results from an interim analysis of an ongoing study of the experimental lung cancer drug Ivonescimab. According to the report, the survival data showed a drastically lower rate than previously predicted. Because the Mainz-based company is researching a similar therapy, BioNTech shares were caught up in the fallout.

After the death of 157 patients, it became apparent that Ivonescimab only reduced the risk of death by around 22%, corresponding to a hazard ratio of 0.784. A value of 1.0 indicates that there is no difference between the two groups.

In their latest study, analysts at Deutsche Bank Research continue to view BioNTech shares as a "Buy" candidate with a price target of EUR 140. The Harmoni-6 study by Akeso and Summit with their antibody in lung cancer patients has sent positive signals for the drug approach that BioNTech is also pursuing with BNT327.

German pharmaceutical company Merck KGaA is planning a billion-dollar deal. BioNTech took a hit due to weak research results from a US competitor. BioNxt announced progress in preparations for its bioequivalence study in humans for MS.