Yesterday, Bayer’s competitor Boehringer Ingelheim received U.S. approval to market its antithrombotic drug Pradaxa . Pradaxa is used to prevent strokes in patients with heart rhythm disturbances. In September the FDA advisory panel unanimously recommended that the drug be approved. This will strengthen Boehringer’s position in the stock market. Boehringer can now start marketing the drug and this gives it an edge over its competition.
Investors are waiting for Bayer’s drug test data.
Bayer and the American pharmaceutical giant, Johnson and Johnson, worked jointly to develop a medicine called “Xarelto.” It is very similar to Pradaxa, but still needs the results of the clinical trials before it can get FDA Approval. In addition a third similar drug is being developed by Bristol Meyer and Pfizer. In Mid-November, Bayer will present its data at the annual meeting of the American Heart association. According to experts at the Deutsche Bank, if the clinical trial results are positive, Bayer will have a potential market for its new medicine of over ten billion Euros.
Bayer Stock has Room to Grow
If Bayer’s clinical trial results are good, as most analysts expect, sales should shoot up and so should the stock price. Fabian Wenner, an analyst with UBS, said that Bayer’s shares have recently been upgraded from “neutral” to “buy”. He also estimated that the stock price will rise from 49 Euros per share to 62 Euros per share.