What MASH could do for your portfolio: BioNxt, Roche, Novo Nordisk

Fatty liver disease accounts for 18% growth - Every year

Research by Data Intelligence predicts that global revenue from MASH drugs will grow from around USD 7.9 billion in 2024 to over USD 30 billion by 2033 – that would be an impressive 18% annual growth rate. The key point from the perspective of the pharmaceutical industry and savvy investors, however, is that MASH has two leading causes – obesity and diabetes, which are also interrelated. The weight-loss injections that have been available in recent years also help combat MASH. Studies have shown that they melt away liver fat and reduce inflammation levels. Current research approaches are therefore focusing on well-known active ingredients like GLP-1 receptor agonists or novel mechanisms of action such as FGF21 analogues.

Novo Nordisk: Weight loss injection also helps against MASH

Diet injection pioneer Novo Nordisk has applied to the US Food and Drug Administration (FDA) for an accelerated review of the effectiveness of its active ingredient Wegovy in treating MASH. Recently, the Company published clear positive effects of the classic weight-loss injection on liver markers in the scientific journal NEJM. Novo Nordisk intends to continue its research in this area and is optimistic about the results. The small biotech company BioNxt is also exciting in this context. The Canadians recently announced their intention to administer the active ingredient semaglutide, which is found in weight-loss injections, by means of oral dissolvable films. The Company aims to make these medications easier to use. Many patients currently inject semaglutide once weekly. Patient studies have shown that treatment is often discontinued after a few months. If the active ingredient can be taken orally, patient adherence could improve significantly.

BioNxt gains an additional use case with MASH

Further advantages of innovative dosage forms include potentially higher bioavailability, which can lead to cost savings—the assumption is that if more of the active ingredient reaches patients, a smaller single dose may be required. Most recently, BioNxt's stock rose due to the newfound excitement surrounding weight loss drugs. The new hype surrounding MASH drugs, fueled in part by a recent billion-dollar acquisition by Roche, could bring BioNxt additional attention.

Just recently, Swiss company Roche snapped up US biotech firm 89bio for USD 3.5 billion. The target is its FGF21 analogue pegozafermin, which promises to be an effective treatment for MASH. Roche CEO Thomas Schinecker praised the "transformative potential" of pegozafermin for MASH, adding that the acquisition strengthens the pipeline for obesity-related diseases. Given the aggressive acquisitions by major multinationals in this and related disease areas, innovative auxiliary technologies like BioNxt's dissolvable films are also likely to see increased demand. The uplisting of BioNxt shares to the higher OTCQB segment in the US also indicates that the market could be on the move. The aim of this measure is to attract more professional investors in the future.

BioNxt shares offer interesting leverage

MASH is a highly competitive growth area. The diverse therapeutic approaches involving GLP-1 antagonists create opportunities for small specialists like BioNxt to distinguish themselves through innovative drug delivery methods. If the Company's research programs succeed, they could simplify everyday treatment for patients and position BioNxt as a sought-after partner for multiple global corporations. Investors can participate in the boom in obesity and MASH therapies through BioNxt shares. Those less risk-averse may instead consider shares in Roche or Novo Nordisk, which are more likely to offer steady profits than the chance of a potential price multiplication. In any case, MASH represents a promising growth theme for portfolio returns.