Close menu

March 27th, 2023 | 09:26 CEST

Cost pressure in the healthcare system - how you benefit: Bayer, BioNxt, BioNTech

  • Biotechnology
  • Pharma
Photo credits:

What do you think of the German healthcare system? While doctors regularly grumble about bureaucracy and patients about long waiting times or other inconsistencies, a new divide is opening up between pharmaceutical companies. Research-based pharmaceutical companies favour long patent protection, while generics manufacturers want more lax rules. We explain the system and highlight opportunities for investors.

time to read: 3 minutes | Author: Nico Popp
ISIN: BAYER AG NA O.N. | DE000BAY0017 , Bionxt Solutions Inc. | CA0909741062 , BIONTECH SE SPON. ADRS 1 | US09075V1026

Table of contents:

    Bayer and BioNTech: Margin only with innovation

    It is not unusual for it to take more than ten years for a new drug to benefit patients. That is how much time is taken up by research and the approval process. In addition, according to Bayer, costs of around USD 2 billion are incurred for each new drug. In recent years, there have been repeated plans to relax intellectual property protection. In Europe, a proposed law would allow manufacturers of generics and biosimilars to produce a drug even though intellectual property protection is still in place. In the wake of supply bottlenecks for many generic drugs, such as cough syrup for children or medicines for the chronically ill, the discussion has picked up steam again. The aim of the legislators is now to create incentives for generics, where margins are traditionally small, to be produced more within the EU again and, at the same time to open up the opportunity for innovation in the generics market.

    In practice, the added benefit will now determine whether patent-protected drugs can also be expensive. Research-based pharmaceutical companies such as Bayer or BioNTech are expected to deliver added value to justify high prices. Creating this added value could be difficult, especially for traditional pharmaceutical companies that develop certain active ingredients step by step. Consider, for example, new generations of antihistamines for allergies - whether allergy sufferers can really tell a significant difference between the individual preparations is questionable.

    Biotechs have the edge

    In contrast, biotech companies that use modern processes such as mRNA are better positioned. No one will deny the usefulness of BioNTech's COVID vaccine. The same applies to therapeutic vaccines against cancer, which the Mainz-based company has in the pipeline in various variants. In order to assess regulatory risks in the healthcare sector, investors should distinguish between evolutionaries and revolutionaries in research-based pharmaceutical companies. Compared to traditional pharmaceutical companies, such as Bayer, biotechs, such as BioNTech, are likely to have the edge in the race for healthcare budgets.

    BioNxt as a cost reducer

    The German-Canadian company BioNxt occupies an exciting niche in the healthcare market. The Company offers three business segments. The area of psychedelics is more experimental and is primarily finding favour in North America. The diagnostics business, on the other hand, is considered promising in this country as well. BioNxt has products on offer for diagnosing diseases in the oral cavity quickly and at a low cost. This is a particularly important market in the US, where drugs for opioid abuse are increasingly triggering inflammatory diseases in the oral cavity. BioNxt announced an agreement with a partner last October to advance its diagnostics toward market maturity.

    BioNxt's third and most exciting business area is in innovative drug delivery systems. The generics market, in particular, is characterized by a fierce price war. BioNxt provides a remedy here by administering proven active ingredients to patients in such a way that they become more effective and possibly even require lower doses. In recent months, BioNxt has been advancing its active ingredient patches. These carry the Parkinson's drug rotigotine and are scheduled to be studied in a clinical trial in the coming weeks. In March, BioNxt also acquired tablet manufacturing technology, saying, "This coating system could significantly improve oral drug delivery in tablets and capsules through more precise drug release and predictable dosing. The potential applications for this innovative platform technology are extensive. We look forward to exploring product development opportunities ranging from dietary supplements and over-the-counter medications to prescription drugs and psychedelic substances," commented BioNxt CEO Hugh Rogers.

    BioNxt is well positioned with its three businesses, some of which could be synergistic and promise advantages in healthcare systems characterized by cost pressures. The Company recently announced a capital measure, before which the share price jumped significantly. In the meantime, the innovative smallcap also looks promising in the long term for chart-technical reasons. While classic pharmaceutical companies, which tend to advance their products in an evolutionary manner, could have difficulties achieving margins in the future, BioNxt focuses on innovations that promise efficiency increases. Given the current discussion about costs in the healthcare system, this strikes a chord.

    Innovations continue to pay off. Source: BioNTech SE

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
    For this reason, there is also a concrete conflict of interest.
    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    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.

    About the author

    Related comments:

    Commented by Juliane Zielonka on June 1st, 2023 | 09:30 CEST

    BioNxt Solutions, Bayer, Palantir - AI is dominating the market at breathtaking speed and ensuring high returns

    • Biotechnology
    • Pharma
    • AI

    Tech investors have suffered heavy losses over the past year. But tech in pharma and security in defence enables entirely new future scenarios whose precise developments are worth examining more closely. For example, gentler and more effective new ways that benefit patients are emerging in the drug delivery market. At the forefront is the Company BioNxt Solutions, which specializes in innovative transdermal patches whose active ingredients literally go under the skin. In Germany, the biotech company cooperates with a German pharmaceutical partner. New times are now dawning for Bayer as well. Under the new reign of CEO Bill Anderson, digital health seems to have finally found its positioning in the Consumer Health division. There, the Company is to cooperate with exciting start-ups that collect and analyze consumer data. When it comes to networking and interpreting data using AI, one company in particular stands out at the moment. Palantir is moving out to "dominate the entire market." How? Find out in the comments below.


    Commented by Fabian Lorenz on June 1st, 2023 | 08:45 CEST

    JinkoSolar, BioNTech and First Phosphate with important updates: This is what moves the shares

    • Mining
    • phosphate
    • photovoltaics
    • Biotechnology

    The energy transition is moving forward. In Germany, the traffic light government seems to have agreed on a new heating law. In the US, the agreement between Democrats and Republicans on the debt ceiling is a good sign for the industry because the promotion of environmentally friendly technologies depends on it. JinkoSolar and First Phosphate, among others, should benefit from this. Both companies have published important updates. There is also important news at BioNTech. However, these are not so positive. When will there be new impulses for the share?


    Commented by André Will-Laudien on May 31st, 2023 | 08:30 CEST

    Biotech in turnaround mode! BioNTech, Defence Therapeutics, MorphoSys, Formycon - Take a close look at these shares!

    • Biotechnology
    • Pharma
    • vaccine

    Since the major pandemic wave in the biotech sector, most industry players have had to come to terms with normality again. Scolded investors quickly learned their lesson and are now looking warily at an industry that experienced its heyday between 2019 and 2021. Today, it is no longer the small announcements of hope that lead to significant price swings. After months of sell-offs, however, the sector is stabilizing for the first time, and some protagonists can report minor progress. When the sector trend weakens, selection is the trump card. Here are some suggestions.