Move Aside, Moderna: This mRNA Stock Is Sitting on a Cash Pile and a Deep Cancer Pipeline

Moderna isn't the only mRNA biotech stock that could deliver big gains for investors. BioNTech (NASDAQ: BNTX) has billions in cash on its books and a cancer treatment pipeline that could transform it from a COVID-19 vaccine maker into a major force in oncology.

With several promising therapies advancing through clinical trials, this biotech could already have the ingredients to fuel its next chapter of growth.

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The potential starts with its balance sheet.

BioNTech has plenty of cash to develop its candidates

As of the end of the second quarter, the German biotech business had 16.6 billion euros in cash, cash equivalents, and securities on its balance sheet. That gives BioNTech significant financial flexibility to fund research, advance clinical trials, enter into partnerships, and develop new medicines for the market.

It also announced a share repurchase program of up to $1 billion. That's an encouraging sign that the company has strong operating cash flows that will allow it to fund that buyback while continuing to invest in its core business.

The bigger question, however, is what the company plans to do with the rest of the money.

Right now, its only commercialized product is Comirnaty, the COVID-19 vaccine that it developed and marketed in partnership with Pfizer. But BioNTech is working toward becoming a multiproduct company focused on oncology by 2030.

That shift could give investors exposure to a much broader business if its research pays off. Plus, unlike a cash-strapped biotech that must keep raising money to fund R&D, BioNTech can finance its development programs with resources already sitting on its balance sheet.

Indeed, what makes BioNTech interesting today is its combination of financial firepower and a pipeline moving beyond early-stage trials.

The cancer pipeline is becoming harder to ignore

BioNTech's oncology strategy extends well beyond personalized mRNA cancer vaccines. The company is developing treatments across several categories, including immunomodulators, antibody-drug conjugates (ADCs), and cancer immunotherapies.

This diversification matters because cancer is not one disease with one solution. Different tumor types respond differently to treatment, and even patients with the same type of cancer may need different approaches. Building a broader portfolio gives BioNTech more potential avenues to drive future revenue growth.

For example, BioNTech reported 14 ongoing pivotal clinical trials and more than 10 novel combination approaches across major tumor types. These phase 2/3 and phase 3 trials are especially important because they can provide the evidence needed to support regulatory applications. Positive results could move candidate drugs closer to commercialization, while negative results would help the company narrow down which candidates it's focusing on.

One of BioNTech's most closely watched candidates is pumitamig, a potential cancer treatment developed in collaboration with Bristol Myers Squibb. The company reported encouraging results from a trial that combined the drug with chemotherapy as a treatment regimen for lung cancer.

On top of that, the commercial opportunity could extend well beyond lung cancer. BioNTech's ROSETTA development program includes seven pivotal trials evaluating pumitamig, covering multiple cancer types and treatment settings. It also initiated additional global trials in areas like breast cancer, colorectal cancer, and gastric cancer.

That growing pipeline is one of the strongest reasons to watch BioNTech closely, but valuation matters just as much.

Is BioNTech stock a buy at today's valuation?

Wall Street is quite bullish on BioNTech. In fact, among the 20 analysts covering it, 13 rate the stock a strong buy, while the remainder rate it a hold. Their target prices imply potential upside of 5% to 64% over the next year, with an average implied gain of 39%.

On valuation, the stock trades at a price-to-sales ratio of 7, a level that could seem reasonable if the company successfully turns its pipeline into blockbuster drugs.

Of course, there are no guarantees in drug development. Clinical trials can fail, regulatory approvals can be delayed, and even if a company brings an effective treatment to market, competitors may develop treatments that outperform it.

At the same time, declining COVID-19 vaccine revenue and ongoing R&D spending could eat into BioNTech's cash reserves. These factors could weaken the bull case for the company.

Looking ahead, results from BioNTech's pivotal trials will provide fresh insights about whether its pipeline can deliver. If it does, BioNTech's massive cash reserves will give it plenty of dry powder to move beyond its COVID-19 business and fund its next phase of growth.

For long-term investors who are comfortable with the risks, a pipeline this deep and a cash cushion large enough to bring those candidates through the clinical trial process could make BioNTech worth considering.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BioNTech Se, Bristol Myers Squibb, and Moderna. The Motley Fool has a disclosure policy.