EU and US could reach trade deal this weekend - Reuters
On Friday, H.C. Wainwright analysts increased the price target for BioNTech (NASDAQ: NASDAQ:BNTX) stock to $145 from $134, while maintaining a Buy rating. The stock has shown strong momentum, gaining nearly 15% over the past week. According to InvestingPro data, analyst targets for BioNTech range from $83 to $171, with 8 analysts recently revising their earnings expectations upward. This adjustment follows BioNTech’s announcement of a strategic partnership with Bristol Myers (NYSE:BMY) Squibb for the global co-development and commercialization of BNT327, a PD-L1 x VEGF bispecific. The company, currently valued at $26.5 billion, maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 10.18.
Earlier this week, BioNTech and Bristol Myers Squibb entered into an agreement to jointly develop and commercialize BNT327. The partnership includes plans to develop BNT327 both as a monotherapy and in combination with other products. Both companies retain the right to independently explore further indications and combinations with their proprietary pipeline assets.
As part of the agreement, Bristol Myers Squibb will pay BioNTech an upfront fee of $1.5 billion, with potential additional payments totaling $2 billion through 2028. BioNTech may also receive up to $7.6 billion in milestone payments for development, regulatory, and commercialization achievements.
The collaboration also includes a 50/50 split on development and manufacturing costs, as well as profits and losses. Analysts at H.C. Wainwright believe that BNT327 could gain a competitive advantage due to Bristol Myers Squibb’s expertise in immunotherapy and commercial capabilities.
The analysts reiterated their Buy rating on BioNTech stock, citing the comprehensive clinical development program for BNT327 and the strategic benefits of the partnership. For deeper insights into BioNTech’s financial health and growth prospects, InvestingPro subscribers can access a comprehensive Pro Research Report, which includes detailed analysis of the company’s competitive position and future outlook among 1,400+ top stocks.
In other recent news, BioNTech has entered into a global co-development and co-commercialization agreement with Bristol Myers Squibb for BNT327, a move that analysts from Oppenheimer describe as a significant endorsement of the program. This collaboration, announced during the American Society of Clinical Oncology conference, aims to accelerate the development of existing programs and explore new indications. Truist Securities has increased its price target for BioNTech to $155, citing the partnership’s potential to share research and development expenses and leverage Bristol Myers Squibb’s expertise. BioNTech is set to receive $3.5 billion in upfront and near-term cash as part of the deal, with potential milestone payments totaling $7.6 billion.
Clear Street also raised its price target for BioNTech to $181, reflecting confidence in the company’s strategic development in oncology. The firm’s analysts noted BioNTech’s proactive approach in advancing new tumor therapies. UBS maintained a Neutral rating with a $115 target, following results from a global Phase 3 trial of Ivo, highlighting the need for further data to support changes in their valuation. Meanwhile, Goldman Sachs initiated coverage with a Neutral rating and a $110 target, acknowledging BioNTech’s solid financial position and ongoing revenue from its COVID-19 vaccine.
Goldman Sachs emphasized the importance of upcoming clinical data in determining BioNTech’s future growth trajectory. The firm recognized BioNTech’s promising position in developing PD-1/L1xVEGF bispecifics, a new class of immunotherapy with potential in large-market oncology indications. These recent developments reflect BioNTech’s strategic moves to expand its oncology pipeline and transition beyond its COVID-19 vaccine legacy.
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