Bloomberg — BioNTech SE slumped on the US stock market after the German biotech reported its first loss since 2020 due to weaker demand for the Covid-19 vaccines it makes with Pfizer Inc. (PFE).
Write-downs by Pfizer of unused vaccine stocks trimmed BioNTech’s share of second-quarter profits. The biotech’s US depository receipts fell as much as 10% in New York.
BioNTech is investing its pandemic-era profits in a broad portfolio of experimental drugs for other difficult-to-treat infectious diseases and cancers. However, until those projects come to fruition, the Covid-19 vaccine remains their only commercialized product.
The company sees trading opportunities to boost its product portfolio, with potential targets in the sub-$1 billion price range, Chief Strategy Officer Ryan Richardson said on a call with analysts. An acquisition would have to fit very well strategically for BioNTech to consider a major move, he added.
BioNTech posted a second-quarter loss of 79 eurocents per share, compared with diluted earnings per share of 6.45 euros ($7.09) in the prior-year period. Analysts had expected a loss of 60 cents per share.
Amid uncertainty about the Covid-19 vaccine market, BioNTech is also cutting back on some research and development spending. The company expects to spend €2-2.2 billion on R&D this year, cutting €400 million from both sides of the margin. It will also cut this year’s capital spending budget from about 600 million euros to about 450 million.
The company maintained its forecast of about 5,000 million euros in vaccine sales this year. Vaccine sales should pick up in the second half due to seasonal effects, BioNTech said. Delivery of the latest variant-adapted vaccine is expected to begin as early as next month.
Read more at Bloomberg.com
2023-08-07 16:06:05
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