We scour the net for great ideas, so you don't have to
Claim this username to collect earnings from this post, and the portfolio!
I want to give you some insight on BioNTech (NASDAQ: $BNTX), a German biotechnology company that - especially in the US - often stays in the shadow behind Pfizer when speaking about Covid vaccines. Currently trading at about $295, I am super bullish for this company, both in the short-term as well as long.
Looking at the chart, BNTX just finished its consolidation and is now back in a uptrend. When the resistances at $300 and $330 are broken (300 probably today), there's a lot upside potential as two major catalysts are approaching next week: Q3 ER and its participation at a oncology congress. Let's look at the two separately, as well as an outlook.
-- As usually: I am by no means a financial expert, please do your own DD. --
In the last quarters, BioNTech showed a pattern of crushing it's earnings estimations and after Pfizer topped its estimations significantly yesterday, so will BioNTech as they share profits 50:50. As a result, alone from this we could/should get close to the ATH of $464 (reached shortly after the great Q2 ER) until ER on Nov 9. But this is not a short-term exaggeration if you look at the fundamentals: The market cap is currently at about $66B with the currently estimated EPS of $42 in 2021 and about the same for 2022 (source). This leads to a current price-earnings ratio of only 7 while the competitor Moderna (ticker: $MRNA) is at 12 (source). For BNTX, a value of 12 would mean a share price of $500 and this doesn't even take into account BioNTech's better pipeline (see below)!
Presentations at 36th SITC Annual Meeting (oncology congress)
Covid is obviously a major topic and will continue to be but some criticize that BNTX's vaccine is the only product they have on the market currently. Some background on the company: originally, BNTX was founded with the aim to fight cancer using mRNA technology, the Covid vaccine was more of a side product by utilization of the deep knowledge they had gained in this area over time. Thus progress in their oncology programs would be a big win, both for humanity as well as for the share price. On October 1, BNTX announced that they will be presenting new data on four of their oncology programs at the SITC Annual Meeting November 10 - 14, some of them phase 1/2 in-human studies. Furthermore "The data we will be presenting at SITC 2021 is indicative of our continued pursuit of pathbreaking science and the development of our platform technologies that tailor anti-cancer therapies to individual patient needs,” said Özlem Türeci, M.D., Co-Founder and Chief Medical Officer at BioNTech. “We are encouraged by the considerable progress within our oncology portfolio seeing multiple programs now coming to fruition. They represent critical steps for us towards bringing cancer immunotherapy into the next generation and we are looking forward to sharing the data with the scientific community at a key conference.” (source)
To me, it's hard to miss the excitement between the lines - "encouraged by the considerable progress", "coming to fruition", "looking forward to sharing the data", ... Also, I don't think they would be participating if the data wasn't good.
Good news in this matter just days after beating earnings estimations and on top of a possible ATH (or close to it) would blow all boundaries, I think. And that's without the shorts that will be grilled on the way. However, I don't like the excessive use of rocket emojis, so I'll spare them here.
Beyond all this short-term excitement, BNTX is also a great hold for the long-term future. Uğur Şahin, BioNTech' CEO, when asked about the future of mRNA pharmaceuticals, explained: "The first approved products are already here. The next drug could come in the next year and a half. Then, two or three more will arrive, then five, then 10. And then it will skyrocket. I predict that in 15 years, one-third of all newly approved drugs will be based on mRNA technology." (source) The massive profits due to the Covid vaccine success lead to huge possibilities for more R&D projects and I am convinced this will allow BNTX to expand its position as the current and future market leader dramatically.