BioNTech reported another setback in the development of cancer drugs. Its stock plummeted

The German biotechnology company BioNTech reported that, in a clinical trial, its experimental cancer drug did not help volunteers with a specific type of head and neck cancer improve their progression-free survival. Shares of BioNTech, known for developing a coronavirus vaccine in partnership with Pfizer, plummeted 6% on the U.S. market on October 13.

The experimental BioNTech drug is called BNT113; it has been tested as a first-line therapy for patients with unresectable (which cannot be completely removed during surgery) recurrent or metastatic HPV-16-positive squamous cell carcinoma of the head and neck that expresses the PD-L1 protein. BioNTech’s drug was used in combination with Keytruda (generic name pembrolizumab)—the world’s best-selling cancer drug, according to Bloomberg.

The third and final phase of the trials had two primary endpoints: progression-free survival and overall survival. Regarding the first endpoint, there was no statistically significant improvement compared to Keytruda alone; regarding the second, clinical trials are ongoing, BioNTech stated.

An initial negative result for such treatments is not uncommon, as the immune response can develop and intensify over time, Bloomberg reports, citing the company. The company pointed to examples of clinical trials that initially failed but were ultimately approved by regulators, including Keytruda, the agency added.

BioNTech's American Depositary Receipts fell 6% during trading on October 13. Year-to-date, they are down nearly 5%.

The mRNA technology underlying BNT113 is a key part of BioNTech’s oncology strategy, Bloomberg notes. The company was founded as an oncology startup, even though it gained fame for its COVID-19 vaccine, the agency reports. The results of the BNT113 trials are a setback for the German biotech company, coming just a few months after BioNTech and its partner Roche halted one of the trials of another personalized cancer vaccine.

In September, Moderna—a competitor of BioNTech that developed a COVID-19 vaccine based on this technology— announced the success of its experimental cancer vaccine, developed in collaboration with Merck. Following this announcement, Moderna’s stock soared.

"BNT113 'may still demonstrate an increase in overall survival,'" noted BMO Capital Markets analyst Evan David Zeigerman in a Bloomberg report; however, he has become more cautious in his assessment of the likelihood of this happening.

On October 9, BofA revised its price target for BioNTech shares from $122 to $114, while maintaining its “buy” rating. The analyst’s price target implies a 31.6% increase in the stock price relative to the closing price on October 12.

Two-thirds of the analysts (14 out of 21) who cover BioNTech stock recommend buying it. The remaining seven advise holding it in their portfolios.

This article was AI-translated and verified by a human editor