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BioNTech Upgraded to Buy by Goldman Sachs as Focus Shifts to Cancer Treatment Potential

Emilia Wright | November 11, 2024

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BioNTech Earns Upgrade From Goldman Sachs As Investment Thesis Shifts Toward Cancer Potential

Goldman Sachs has recently upgraded BioNTech SE (BNTX) as the investment landscape for the company transitions from its COVID-19 vaccine focus to the promising potential of its cancer treatment pipeline. The driving force behind this upgrade is BNT327, BioNTech’s innovative immuno-oncology asset undergoing clinical development across various solid tumors.

Emerging Potential of BNT327

The upgrade came on the heels of encouraging clinical data presented at the European Society for Medical Oncology. The findings from Summit Therapeutics Inc. and its partner Akeso for ivonescimab, a PD-1xVEGF bispecific drug, demonstrated a capability to challenge existing standard-of-care treatments across a breadth of solid tumors. In analyzing this positive momentum, Goldman’s analysts have expressed growing interest in BioNTech’s own bispecific drug, BNT327, speculating that it could follow a similar trajectory to ivonescimab.

While the analysts acknowledge that drawing direct comparisons among trials can be challenging, the emerging data for BNT327 have laid the groundwork for increased confidence regarding its clinical prospects. The analysts note that circumstances involving this drug support a reduction in risk perception and highlight significant opportunities for BioNTech within an array of cancer treatments.

Goldman Sachs Upgrade Rationale

Goldman Sachs has raised its rating for BioNTech to “Buy” from “Neutral” and increased its price target from $90 to $137. In their analysis, they emphasized that the investment thesis surrounding BioNTech is pivoting from the unpredictable dynamics of the COVID-19 vaccine market toward the expansive opportunities being revealed in the oncology space, particularly around BNT327. If successfully developed, BNT327 could propel BioNTech toward its objective of becoming a dominant player in oncology.

Furthermore, analysts believe the current stock levels of biopharma companies with vaccine ties present an attractive entry point for savvy investors, considering the uncertainties looming over their future.

Future Revenue Projections

Goldman Sachs’ analysis includes risk-adjusted revenue forecasts predicting substantial growth for BioNTech, estimating revenues to reach approximately 5.2 billion euros (around $5.58 billion) by 2035 and about 6.6 billion euros by 2040. Key indications driving this revenue projection include:

  • First-line non-small cell lung cancer
  • First-line triple-negative breast cancer
  • Extensive-stage small-cell lung cancer

These strategic cancer indications are anticipated to play a pivotal role in enhancing BioNTech’s financial outlook over the next several years.

Conclusion

BioNTech’s upgrade by Goldman Sachs underscores a significant shift in focus toward oncology, primarily fueled by the promising developments of BNT327. The combination of clinical data demonstrating strong potentials and the recalibrated finance outlook positions BioNTech as a compelling investment opportunity in the evolving landscape of cancer treatment innovations.

As the company expands its portfolio beyond COVID-19 vaccine dynamics, investors and market participants alike will keep a close watch on further developments surrounding BNT327 and its potential to become a leading solution within the oncology realm.