EU and US could reach trade deal this weekend - Reuters
On Monday, JPMorgan analysts maintained their Neutral rating and $116.00 price target for BioNTech stock (NASDAQ: NASDAQ:BNTX). This decision follows BioNTech’s announcement of a global co-development and co-commercialization agreement with Bristol-Myers Squibb (NYSE:BMY) (BMS) for their PD-L1xVEGF-A bispecific antibody, BNT327, aimed at treating solid tumors. BMS, currently trading at $48.11, is showing strong financial health according to InvestingPro analysis, with a "GREAT" overall financial score of 3.01 out of 5.
The collaboration between BioNTech and BMS includes an equal 50/50 split in development and manufacturing expenses. BioNTech will receive an upfront payment of $1.5 billion from BMS, along with $2 billion in non-contingent anniversary payments through 2028. Additionally, the agreement outlines up to $7.6 billion in development, regulatory, and commercial milestones. With a market capitalization of $98 billion and robust annual revenue of $47.6 billion, BMS demonstrates strong financial capacity to support this significant investment. InvestingPro data reveals the company maintains an impressive 74.7% gross profit margin and has consistently paid dividends for 55 consecutive years.
BNT327 is currently being evaluated in over 1,000 patients across more than 20 clinical trials, with registrational trials ongoing or planned for extensive-stage small cell lung cancer (ES-SCLC), non-small cell lung cancer (NSCLC), and triple-negative breast cancer (TNBC). The partnership is expected to expedite BNT327’s market entry and help mitigate risks in additional settings. For detailed analysis of both companies’ growth potential and comprehensive financial metrics, access the full Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
JPMorgan analysts noted that the deal provides BioNTech with non-dilutive capital to enhance its oncology pipeline. They highlighted that while overall survival hazard ratios in the category have been less robust compared to progression-free survival, the agreement serves to further validate the asset and bolster BioNTech’s financial standing and potential long-term prospects. According to InvestingPro analysis, BMS currently appears undervalued based on its Fair Value calculation, with a strong free cash flow yield of 13% and an attractive dividend yield of 5.14%.
The analysts also indicated that focus on BioNTech’s narrative is likely to shift away from COVID-19 towards updates on the company’s own pipeline, reflecting the evolving strategic direction.
In other recent news, Bristol-Myers Squibb reported significant developments that are of interest to investors. The company received European Commission approval for a subcutaneous formulation of Opdivo, which offers a more efficient administration method for cancer treatments, as confirmed by the Phase 3 CheckMate -67T trial. This formulation is now available for use in adult patients with various solid tumors, enhancing patient experience. Additionally, BMO Capital Markets maintained its Market Perform rating for Bristol-Myers Squibb, with a steady price target of $53.00, citing an increase in prescriptions for the schizophrenia medication Cobenfy. The firm projects higher revenue for Cobenfy in the second quarter of 2025 than current Wall Street estimates. Meanwhile, Citi analysts reiterated a Neutral rating on the company’s stock, following promising early results from phase 1 trials of the drug iza-bren for lung cancer. In a leadership update, Bristol-Myers Squibb appointed Cari Gallman as the new Executive Vice President, General Counsel, and Chief Policy Officer, succeeding Sandra Leung. These developments highlight the company’s ongoing efforts in advancing cancer treatments and strengthening its leadership team.
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