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

Goldman Sachs has upgraded BioNTech SE BNTX, citing the company’s BNT327, an immuno-oncology asset in clinical development across multiple solid tumors.

Data from Summit Therapeutics Inc. SMMT and their partner Akeso for ivonescimab (PD-1xVEGF bispecific) has shown the potential to challenge standard-of-care regimens across a range of solid tumors.

The analyst notes that the data for ivonescimab have sparked interest in BioNTech’s bispecific drug, BNT327, and its potential to follow a similar path and gain value.

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The analyst adds that the data for BNT327, including the latest findings presented at the European Society for Medical Oncology, show a promising clinical profile.

While direct comparisons with other trials have limitations, this data supports growing confidence in reducing risks and points to significant potential opportunities for BioNTech in various cancer treatments.

Goldman Sachs has upgraded BioNTech to Buy from Neutral, with a price target of $137, up from the previous target of $90.

“We see the investment thesis in BNTX continuing to pivot – away from difficult-to-forecast COVID-19 vaccine market dynamics, and towards the potentially significant opportunity coming into view for BNT327, which if successfully developed has the potential in our view, to drive the company towards achievement of its goal of becoming a leading commercial player in oncology,” Goldman analyst writes.

The analyst believes that uncertainties surrounding the future of biopharma companies with vaccine businesses have uniquely made current stock levels an attractive entry point for investors.

Goldman incorporates risk-adjusted revenue forecasts that currently sum to 5.2 billion euros ($5.58 billion) in 2035 and 6.6 billion euros in 2040, with key indications including first-line non-small cell lung cancer is potentially sizable, first-line triple-negative breast cancer and extensive-stage small-cell lung cancer as strategic.

Price Action: On Friday, BNTX stock closed 2.56% higher at $110.64.

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