BioNTech is facing a weak second quarter of 2023 as demand for Covid vaccines wane throughout the warmer summer months.
Analysts at Canaccord have noted the drug maker’s “seasonal administration pattern” that favors the fall.
Meanwhile, BioNTech’s 1Q earnings were “largely uneventful,” according to Canaccord, despite beating on revenue estimates reiterating its €5 billion full-year 2023 revenue guidance for its Covid vaccine, Comirnaty.
Beyond the more immediate vaccine prospects, Canaccord highlighted BioNTech’s strides in its oncology pipeline. Analysts believe the company has assembled the most comprehensive and well-rounded oncology portfolio in the biotech industry.
“Over the remainder of 2023 we do expect shares to trade mostly on COVID vaccine outlook. However, longer term we think that the company has assembled the most complete, well-rounded oncology pipeline in biotech,” Canaccord analysts wrote.
The analysts noted BioNTech’s early clinical approaches including personalized cancer vaccines and CAR-T approaches, saying they offer the opportunity to “transform cancer treatment.”
Meanwhile, recent M&A (such as the deal with DualityBio for ADCs and OncoC4 for a CTLA-4 antibody) offer potential improvements to more validated commercial mechanisms, Canaccord wrote.
“We like these additions for two main reasons,” the analysts highlighted.
“As a company developing multiple combinable approaches to oncology, acquiring rights to combinable assets creates multiple synergies to the larger portfolio, and the shorter runway to meaningful commercial contribution…helps provide a clear long-term path to become a growing profitable and growing oncology company.”
Along with a Buy rating, Canaccord has a price target of US$203 on BioNTech stock, which is currently trading above $102 in New York.
Contact Angela at angela@proactiveinvestors.com
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