Exciting pharma duel: Who will take off now - BioNxt Solutions, Bayer or Novo Nordisk?

BioNxt Solutions: Innovative drug films put to the test

Not every groundbreaking medical innovation requires the development of an entirely new active ingredient. Often, it is a smarter, more patient-friendly method of administration that makes the decisive difference. This is precisely the approach taken by the Canadian biotech company. BioNxt Solutions is focused on developing thin drug films that dissolve easily in the mouth.

The focus here is on the lead project, BNT23001, a novel formulation based on cladribine, a clinically proven, established active ingredient used, among other things, to treat certain relapsing forms of multiple sclerosis.

Targeted administration without liquids and without the difficulty of swallowing tablets offers tangible added value, particularly for patients with chronic swallowing difficulties. The company recently reported the successful completion of the production of around 1,500 clinical trial films, manufactured in strict accordance with pharmaceutical GMP quality standards, while the formal clinical trial application had already been submitted via the central European CTIS portal.

A planned bioequivalence comparison with the established reference product Mavenclad is now intended to clarify, in particular, how the body absorbs the active ingredient under real-world conditions and what effective concentrations are achieved, with fundamental parameters such as safety and tolerability also in focus.

Beyond the MS programme, BioNxt is advancing an ambitious semaglutide film programme together with its German development partner Gen-Plus. The development programme launched in the spring currently involves demanding formulation work, analytical procedures and basic feasibility testing.

BioNxt is not only focusing on individual drug candidates, but is pursuing a broader development approach with its technology platform. In addition to innovative orally dissolving films (ODFs) and transdermal patches, the company is working on improved oral drug formulations and targeted drug delivery systems for cancer therapy. Initial laboratory results are encouraging, but their significance has yet to be demonstrated in further development phases.

With a current share price of about CAD 0.26 and around 136.09 million shares outstanding, BioNxt's market capitalisation amounts to a modest CAD 35 million.

Bayer: Share price at a yearly high

Bayer generates its revenue across a broad range of prescription pharmaceuticals, over-the-counter healthcare products and its global agricultural business. In the sensitive pharmaceuticals sector, it is crucial that newer, dynamic growth drivers offset the massive revenue declines of older blockbuster drugs whose patents have expired.

Thanks to positive business performance in its pharmaceuticals division, Bayer is more optimistic about the current financial year and has raised its earnings forecast. Adjusted EBITDA is now expected to reach EUR 9.8 billion to EUR 10.3 billion, with both ends of the range EUR 200 million above the previous guidance. Growth drivers include, in particular, the relatively new medicines Nubeqa for treating prostate cancer and Kerendia for protecting the kidneys and heart. Both products recorded significant revenue increases in the third quarter. Overall, the pharmaceuticals division increased its adjusted operating profit by almost a quarter.

By contrast, the weaker agricultural business, with a significant decline in earnings, and the ongoing litigation in the US weighed on performance. The glyphosate lawsuits in particular remain a source of uncertainty, but the recent victory in a US jury trial is encouraging.

Novo Nordisk: Enormous earnings power

The Danish specialist in diabetes and obesity treatments shows that innovative, alternative dosage forms can make a big difference in the pharmaceutical sector. In the third quarter alone, the newly launched oral Wegovy tablet generated DKK 5.39 billion in revenue. This underscores strong patient demand for convenient, needle-free treatment options.

Supported by this continuing boom, Novo Nordisk raised its financial outlook and narrowed its full-year expectations for adjusted revenue and operating profit to a range of minus 2% to plus 2% at constant exchange rates. In the third quarter, group revenue climbed to DKK 79.20 billion, while adjusted operating profit rose by a disproportionately strong 27% at constant exchange rates. Free cash flow in the first nine months stood at DKK 83.8 billion.

Conclusion

Novo Nordisk is the undisputed industry leader, able to profitably expand its global dominance in the metabolic therapies segment despite growing competitive pressure. The Danish company also demonstrates how successful innovative and alternative dosage forms can be. This is precisely where BioNxt Solutions comes in. In addition to innovative orally dissolving films (ODFs) and transdermal patches, the company is working on improved oral drug formulations and targeted drug delivery systems for cancer therapy. This gives the Canadian company considerable leverage given a market capitalisation of just CAD 35 million. A strong pharmaceuticals business is fuelling optimism at Bayer. Its shares are trading at a yearly high.