Takeover speculation and buy recommendations: Buy Bayer, BioNTech, and BioNxt Solutions stock after a 150% rally?

BioNxt Solutions: After a 150% rally, there is still more to come

BioNxt Solutions is increasingly developing into a biotech pearl. Since the end of September 2024, the share has been following a textbook upward trend. It has risen from CAD 0.20 to over CAD 0.50 during this period. The fact that the recent capital increase was implemented with virtually no price weakness is a clear sign of strength. The stock still seems to want to go higher, as it is also actively traded on platforms like Tradegate, for example, and does not appear expensive, with a market capitalization of less than EUR 50 million.

BioNxt is currently in a 90-day program – of which around 30 days have passed – during which important milestones are to be reached. These include patent advancements for the developed sublingual drug products (orodispersible films) for the treatment of autoimmune diseases such as multiple sclerosis (MS), myasthenia gravis (MG), lupus nephritis (LN), and rheumatoid arthritis (RA). Clinical trials for the lead product BNT23001 for the treatment of MS are also expected to begin soon. The bioequivalence study is relatively short and is planned to take less than 30 days from start to finish.

While BioNxt is forging ahead with commercialization, it is already expanding into a new billion-dollar market: life-prolonging and anti-aging products. According to Statista, this industry is expected to generate USD 93 billion in revenue by 2027. To get a piece of the billion-dollar pie, BioNxt is working on the development of proprietary sublingual (orodispersible) and oral (enteric-coated tablet) drug products with active pharmaceutical ingredients that have been shown in early-stage trials to slow ovarian aging, extend fertility, and promote healthier aging. Further details will be published in the coming weeks.

With the progress in its core business and the expansion into a new billion-dollar market, BioNxt is becoming more interesting for a takeover. At the current valuation, it should not stay that way for long – either the share price rises, or a big player makes a serious offer.

Bayer: Analysts skeptical

Bayer urgently needs acquisitions in the pharmaceutical sector. However, the lawsuits surrounding glyphosate have recently become a major concern again.

Last week, for example, the DAX-listed company was ordered to pay around USD 2.1 billion in the US state of Georgia. The jury found in favor of the plaintiff, that the glyphosate-based weed killer Roundup was responsible for a cancer. Bayer said it did not agree with the verdict. It is contrary to scientific findings and the assessments of various regulatory authorities. Bayer acquired Roundup with its acquisition of Monsanto in 2018. Since then, billions have been paid for legal fees and settlements. However, there are still tens of thousands of lawsuits pending. An end to the billion-dollar fiasco is still not in sight.

Analysts are also cautious overall. Recently, JPMorgan confirmed its "Neutral" rating for Bayer shares. The analysts pointed out that glyphosate is not the only billion-dollar problem facing the DAX-listed company. The PCB issue has become somewhat quieter in recent months. Overall, the outcome of the legal disputes remains uncertain. Therefore, they consider the stock to be fairly valued at present.

BioNTech: 2 Buy recommendations

Analysts, on the other hand, see upside potential for BioNTech. The shares of the German biotech flagship could do with some support. In February, the downward trend that had lasted several months came to an end. BioNTech shares have lost around 18% of their value in the past four weeks, falling well below the EUR 100 mark and currently trading at around EUR 87. Too low, say some analysts.

Recently, Berenberg, among others, has expressed a positive view. The Company is making good progress in the development of its oncology pipeline and is on the right track overall. Therefore, the analysts have confirmed their "Buy" recommendation. Their price target for BioNTech shares is USD 130. Goldman sees the share's potential as being slightly higher. Based on the interim results of the ongoing study of the antibody BNT327 against small cell lung cancer, the "Buy" recommendation was confirmed. The analysts believe the share can reach USD 136.

However, the share has not yet reacted to the positive comments.

The BioNTech share is ripe for a countermovement. Investors can look forward to important news flow. This also applies to BioNxt. The chart of this biotech gem is also convincing, and the takeover speculation is growing. Bayer could well use takeovers in its pharmaceutical division. However, the legal disputes in the US seem to be paralyzing the Company.