Positive study data and a takeover provide tailwind – Berenberg is now raising the price target for BioNTech and sees further potential in the oncology pipeline.
• Billion dollar takeover in view
• BioNTech on the way to becoming an oncology specialist
• Berenberg adjusts valuation
BioNTech: Billion acquisition of CureVac on the home stretch
The takeover of the Tübingen biotech company CureVac by BioNTech is already nearing completion. Around 81.7 percent of CureVac shareholders accepted the offer and exchanged their shares for BioNTech share deposit receipts (ADS) – this means that the required minimum acceptance threshold of 80 percent has been reached. CureVac shareholders can exchange their shares within a grace period until December 18th, after which the exchange will take place automatically.
The offer announced in June values CureVac at around $1.25 billion. The management and supervisory boards of both companies had already approved the transaction, and completion is expected in 2025. With the takeover, BioNTech brings together two of Germany’s once greatest hopes for mRNA research. After CureVac’s withdrawal from the corona vaccine race, its technological expertise will accelerate the progress of BioNTech’s mRNA-based cancer therapies in the future.
Promising data on cancer therapy
In addition, positive survival data for its immunotherapy candidate Gotistobart has recently become the focus of investors. In the early phase of the global phase 3 study PRESERVE-003, patients with advanced non-small cell lung cancer showed a clear advantage over standard chemotherapy: after one year, 63 percent of patients treated with Gotistobart were still alive, compared to 30 percent with chemotherapy – the risk of death fell by around 54 percent. The active ingredient aims to specifically activate the immune system by blocking regulatory T cells in the tumor tissue and does not require chemotherapy.
Although the data come from a part of the study that is not yet relevant for approval, they are seen as important progress in BioNTech’s strategy to establish itself as an oncology specialist. The approval-relevant part of the study is currently underway at over 160 locations worldwide. If the effect is confirmed, Gotistobart could become a more tolerable and effective alternative to chemotherapy for patients with advanced lung cancer.
Berenberg raises price target
The private bank Berenberg also raised its price target for BioNTech from $150 to $155 before the weekend and continued to rate the stock as “Buy”. According to dpa-AFX, analyst Harry Gillis emphasized that the market has so far underestimated the progress in BioNTech’s oncology pipeline. The new drug candidate Gotistobart has the potential to become the standard of care for a certain form of lung cancer due to its convincing data.
On Thursday, BioNTech shares listed on the NASDAQ rose a moderate 0.28 percent to $96. Before the trading session on Friday, the share rose temporarily by a further 0.59 percent to 96.57 US dollars.
Editorial team finanzen.net
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