Back to top

Image: Shutterstock

BNTX to Boost Oncology Pipeline With Biotheus Acquisition, Stock Up

Read MoreHide Full Article

BioNTech SE (BNTX - Free Report) announced that it has entered into a definitive agreement to acquire China-based biotech, Biotheus, to strengthen its oncology pipeline.

With the acquisition, BNTX will gain full global rights to BNT327/PM8002, an investigational bispecific antibody targeting PD-L1 and VEGF-A, which is currently being developed in mid-to-late-stage studies for various oncological indications.

The transaction is expected to be closed in the first quarter of 2025, subject to the fulfillment of customary closing conditions, including regulatory approvals.

Shares of BioNTech were up 4.9% on Nov. 13 following the announcement of the news. The stock has risen 5.6% so far this year against the industry’s decline of 3.8%.

Zacks Investment Research
Image Source: Zacks Investment Research

More on BNTX's Latest Deal

We remind investors that in November 2023, Germany-based BioNTech signed an exclusive license and collaboration agreement with Biotheus. The agreement granted BNTX the rights to develop, manufacture and commercialize BNT327/PM8002 worldwide, excluding Greater China.

With the acquisition of Biotheus, BioNTech gets full global rights to the candidate

The latest deal is likely to help BNTX expand its footprint in China, adding a local research and development center for conducting clinical studies.

Per the deal, BioNTech will make an upfront payment of $800 million to acquire all the issued share capital of Biotheus. The payment will be mainly in cash, with a small portion in American depositary shares (“ADS”).

BNTX will also make additional performance-based contingent payments of up to $150 million upon the achievement of certain milestones. Also, more than 300 employees of Biotheus will join BioNTech following the closure of the acquisition.

BNTX's Lucrative Oncology Strategy

The above deal is likely to boost BioNTech’s oncology pipeline by adding BNT327/PM8002 and strengthening its capabilities to develop and commercialize next-generation bispecific antibodies and novel treatment combinations.

BioNTech and Biotheus plan to initiate multiple registrational studies evaluating the combo of BNT327/PM8002 plus chemotherapy targeting various solid tumor indications like small cell lung cancer, non-small cell lung cancer and triple-negative breast cancer later in 2024 and 2025.

Additional clinical studies evaluating BNT327/PM8002 as combination therapies are expected to begin later in 2024 and 2025.

Per the company, if successfully developed, BNT327/PM8002 has the potential to replace current checkpoint inhibitor standard-of-care treatments for various oncology indications.

Developing bispecific antibodies that target two proteins, namely PD-1 and VEGF, has been one of the lucrative areas in the treatment of cancer of late.

Companies like Summit Therapeutics (SMMT - Free Report) and Instil Bio (TIL - Free Report) are already engaged in developing their respective PD-1/VEGF targeting antibody candidates, namely ivonescimab and SYN-2510.

While SMMT’s therapy is ahead in terms of clinical development, the BNTX and TIL candidates are not too far away. They are in early-stage or mid-stage development across multiple solid tumors.

Besides, Instil Bio’s SYN-2510 has shown the potential to block both VEGF-A and VEGF-B compared to Summit’s ivonescimab, which blocks only VEGF-A.

BNTX's Zacks Rank & Key Pick

BioNTech currently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the biotech sector is Castle Biosciences, Inc. (CSTL - Free Report) , carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for Castle Biosciences’ 2024 loss per share have narrowed from 58 cents to 8 cents. Loss per share estimates for 2025 have narrowed from $2.13 to $1.88 during the same time. Year to date, shares of CSTL have surged 47.3%.

CSTL’s earnings beat estimates in each of the trailing four quarters, the average surprise being 172.72%.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in