| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 15.99 | -62 |
| Graham Formula | 9.25 | -78 |
Biotest AG (BIO.DE) is a leading German biotechnology company specializing in the development, manufacturing, and commercialization of plasma-derived biological medicines. Headquartered in Dreieich, Germany, and operating as a subsidiary of Grifols, S.A., Biotest serves critical therapeutic areas such as hematology, clinical immunology, and intensive care medicine. The company’s diversified product portfolio includes treatments for hemophilia (Haemoctin, Haemonine), immune deficiencies (Intratect, IgG Next Generation), and infectious diseases (Cytotect CP, Varitect). Additionally, Biotest provides plasma-based therapies like Albiomin and Biseko for blood volume restoration. With a strong presence in Europe and international markets, Biotest leverages its expertise in plasma fractionation to address unmet medical needs. The company’s acquisition by Grifols in 2022 has further strengthened its R&D capabilities and global distribution network. Biotest remains a key player in the plasma-derived therapeutics market, benefiting from increasing demand for specialized biologics in an aging global population.
Biotest AG presents a mixed investment profile. On the positive side, its niche focus on plasma-derived therapies provides stable revenue streams, supported by high barriers to entry in the biologics market. The company benefits from Grifols’ backing, enhancing its financial stability and R&D pipeline. However, Biotest operates in a highly regulated and competitive industry, with significant reliance on plasma collection, which is subject to supply constraints. The company’s modest net income (€26.4M in FY 2023) and high debt (€597.2M) raise concerns about financial flexibility. While its dividend yield is minimal (€0.04/share), long-term growth potential lies in expanding indications for existing products and leveraging Grifols’ global infrastructure. Investors should weigh regulatory risks and plasma supply volatility against the defensive nature of the healthcare sector.
Biotest AG competes in the global plasma-derived therapeutics market, where differentiation hinges on product specialization, manufacturing efficiency, and geographic reach. Its competitive advantage lies in its vertically integrated operations—from plasma collection to fractionation—and a diversified product portfolio addressing rare and chronic conditions. The company’s acquisition by Grifols has bolstered its scale, though it remains smaller than industry leaders like CSL and Takeda. Biotest’s focus on niche therapies (e.g., Trimodulin for COVID-19) provides insulation from broader market competition but exposes it to pipeline execution risks. While its European footprint is strong, it lags behind U.S.-based peers in commercial reach. The plasma industry’s high fixed costs and regulatory scrutiny favor larger players, but Biotest’s specialized products (e.g., Pentaglobin for bacterial infections) carve out defensible niches. Its reliance on Grifols for growth capital and R&D could limit autonomy but enhances long-term stability.