Biotech: Small innovations, big impact with Teva Pharmaceutical, BioNxt and Lonza Group

Innovative dosage forms for greater adherence to therapy and new areas of application

Innovative dosage forms demonstrate that it is not always about the next blockbuster drug. Keywords such as extended release, long-acting injectables, and sublingual drug films describe innovations that get more out of existing active ingredients. This is the case, for example, when substances are released gradually rather than immediately, or when a single monthly dose is sufficient, so patients no longer have to think about their medication every day. Even replacing an injection with an active ingredient film that dissolves on the tongue can often improve therapeutic success. Experts view innovative dosage forms as a way to improve treatment adherence, expand target groups, and unlock additional areas of application. One example is the oral administration of active ingredients for obesity in children: While many children shy away from regular injections, there are no such barriers with tablets or dissolvable films. Similarly, patients who have difficulty swallowing can benefit from alternative dosage forms.

Teva Pharmaceutical makes life easier for patients

The generic drug specialist Teva Pharmaceutical has been focusing on higher-margin specialty generics for some time now, specifically addressing issues of treatment adherence and convenience. This strategy enables the Company to achieve higher margins while delivering tangible medical benefits. One example is Austedo, a tablet used to treat movement disorders and Huntington's disease. Previously, patients had to take tablets several times a day. Austedo, by contrast, is taken just once daily, simplifying treatment and significantly increasing its success. Teva has also launched the antipsychotic drug UZEDY based on the same principle. Instead of daily tablets, which are challenging to take, especially for people with psychosis, UZEDY is administered by injection every one to two months – a real game changer for many people with schizophrenia.

BioNxt: Advances in obesity and MS

The German-Canadian biotech company BioNxt is also following in the footsteps of Teva Pharmaceutical. BioNxt researchers focus on innovative dosage forms, and in the past have concentrated in particular on active ingredient patches for the continuous delivery of the Parkinson's drug rotigotine. For some time now, the Company has also seen great potential in sublingual drug films. These can transport, among other things, the multiple sclerosis drug cladribine and semaglutide, the active ingredient in weight loss injections. In both cases, administration via a dissolvable film offers major advantages. This applies, for example, to MS patients with swallowing difficulties or obese patients who shy away from weekly injections.

The current developments surrounding cladribine in connection with the autoimmune disease myasthenia gravis also illustrate how closely BioNxt is aligning its activities with the current state of research and what potential this could bring. Merck is currently conducting a Phase 3 trial to evaluate the use of cladribine capsules in treating myasthenia gravis. If the study is successful, this will open up another potential market for BioNxt. In the case of the weight loss drug semaglutide, it currently appears that this active ingredient could also be effective against the degenerative liver disease MASH, colloquially known as "fatty liver disease." Studies show that many obese patients already exhibit early signs of MASH. If this condition is treated in a more targeted manner, BioNxt's sublingual delivery technology could benefit from an expanding therapeutic market.

Lonza impresses with innovative solutions and the entire value chain

The figures from Lonza, a company specializing in contract research and manufacturing, also show that innovative dosage forms and unique solutions in the pharmaceutical sector promise attractive growth. Lonza offers its customers the complete value chain from early drug development to commercial manufacturing and specializes in tailor-made release profiles and solutions for masking unpleasant tastes. This profile has a positive impact on sales – in the first half of the year, Lonza's sales climbed by a whopping 19%. As a comprehensive service provider in the biotech and pharmaceutical segment, Lonza is also benefiting from growing concerns about supply chain disruptions. Many clients now prefer integrated, one-stop solutions, further strengthening Lonza's competitive position.

Corporations or small caps – Who is winning the race on the stock market?

While Teva Pharmaceutical and Lonza Group are valued at tens of billions, BioNxt is considered a small cap – the Company is valued at just under CAD 100 million. In order to benefit from the trend toward innovative dosage forms and the expansion of target groups for proven active ingredients, the stock offers a good entry point for speculative investors. After a hype in the summer, the stock has now consolidated.