COVID MODERN BIONTECH STACKINS, DIVEM ARRNM STRATEGIES

The Covid-19 pandemic revolved Modern and BIONTECH In family names almost during the night. Now the two companies are in different roads.

Both modern and Biontech helped pioneers of RNM, or messenger RNA, technology. Modern bet all his identity around MRNA, while Bionntech saw him as a piece of a broader wallet focused on immunology and oncology. Pandemia gave both companies the opportunity to demonstrate RNM's promise to use the body's own immune system to protect against viruses or treat diseases.

Covid vaccines have generated approximately $ 45 billion in sales for each company, which has won each of around $ 20 billion since its launch at the end of 2020. But despite the parallel AUGES after the pandemic, vaccine manufacturers have taken their businesses in different directions, and Wall Street has noticed.

The two companies have spent the gain of the COVID vaccine differently: Modern doubled in their RNM pipe, while Bionntech used the money to make agreements and diversify, even in one of the most popular emerging areas of cancer medicines. Today, Modern has about $ 8.4 billion in cash; Biontech with German headquarters has € 15.9 billion (or $ 18.2 billion).

The divergence of the two companies is even more marked in their actions. During the past year, modern actions have slipped around 72%; Bionntech actions have earned almost 29%.

“Only his name was based on the pandemic and vaccines that quickly brought people around the world to help us overcome that period of time,” said Evercore Isi analyst Cory Kasimov. “But the approach they are adopting now and the perspective for these two companies is clearly different at this time.”

Investors will analyze the performance of both companies as they publish quarterly results in the next few days. Modern will report on Friday morning, followed by BIANTEC on Monday morning.

Modern took another step to reduce costs on Thursday, since he announced that he will reduce approximately 10% of his workforce by the end of the year.

Modern used its effective Covid to build its RNM portfolio, particularly vaccines. He invested in shooting for flu, RSV and viruses less known as the cytomegalovirus and norovirus.

“From our perspective, the pandemic really showed that the science of what we are doing worked, and the type of natural response to that was to continue on that path and do more,” said Modern President Stephen Hoge.

Financing such a large pipe was not cheap. The company has begun to reduce expenses as sales of its COVID vaccine slide and its RSV vaccine struggles to find a support point. But the clock is running, said Readink Mani Foroohar analyst.

“We are moving at a time when being a vaccine company will be more expensive, tedious and onerous,” said Foroohar, citing changes in food and medicines administration under the leadership of the Secretary of Health and Human Services Robert F. Kennedy Jr., who has expressed skepticism about vaccines.

Foroohar in 2022 pointed out what he saw as a tragic defect of Shakespeare in the modern business model. That deficiency, in his opinion, is that modern climbed its pipe assuming that ARNM technology would be the tool for all problems instead of a solution for some problems.

Hoge said the modern is “really good to make RNM medications” and decided to concentrate on doing it.

“The reality is that we believe that in the last 10 years, that the approach has actually made us successful, and in the pandemic, it certainly had a great impact and obviously it was something that prepares us for the most diverse pipe that we have right now,” Hoge said. “So we recognize that we can be going through some cycles, but we are quite sure of the long -term trajectory in which we are, and we are anxious for the coming years to show with all these additional medications of what we really are capable of.”

Meanwhile, Biontech decided to use the income of his Covid vaccine to diversify. Outside the care center as the Pfizer partner took the initiative to sell the companies' Shot, Biontech expanded to new promising cancer technologies.

The most important thing, acquired a biespecific antibody aimed at PD-L1 and VEG-F proteins. That technology promises to build, and possibly better, the success that Merck has found with Keytruda, a cancer medication with almost $ 30 billion in sales only last year.

That thesis must still be tested in large global clinical trials, but Biontech is already seeing that this agreement is worth it. Bristol Myers Squibb In June, he announced that he would pay up to $ 11 billion to associate with Bionntech to develop the experimental drug, which Bionntech acquired for a fraction of that. Biontech in 2023 initially paid Biotheus $ 55 million in advance to license the medicine outside China before acquiring the company directly earlier this year for up to $ 1 billion.

“[BioNTech] They found an asset, developed it, and then obtained a pharmaceutical partner, it's like a dream, “said BMO analyst Evan David Seigerman.” So they are really strategic in that, and I think they are adding a lot of diversification, which makes the story much less risky if it is only focused on MRNA, vaccines and covid, and that is super risky, in my opinion. ”

At the same time, hopes are high that the Biestech Biestech antibody drug works, which means that any disappointment ahead could damage the stock. Investors are observing the upcoming results of the trial of Phase 3 of Summit Therapeutics, which is testing a similar medication for lung cancer. These data could help, or damage, the biontech stock while waiting for data from their own studies, which could take until 2028.

For modern, investors want to see if the sales of their COVID and RSV vaccines can recover. The company is also looking for the FDA approval for an RNM flu vaccine. But at this point, the most intense approach is Modern Phase 3 essay for personalized treatment for melanoma, said RBC Analyst Capital Markets Luca Issi.

Modern can share the first provisional data as soon as next year, Hoge said, although the company cannot promise an exact date since it is an event -based study. That means that people sufficient in the trial should fall before Modern can analyze whether their treatment prevented cancer from returning longer. If the treatment is successful, it could be launched in 2027 or 2028, Hoge said.

That leaves modern depends largely on your vaccines until then. An ongoing patent dispute about modern COVID-19 shot could also eat in the company The cash, the analysts say, add that they expect legal procedures to develop next year.

Time will say if divergent strategies win on long -term Wall Street.