BioNTech experiences the end of the Corona boom and records a loss of 190.4 million euros in the second quarter. In the previous year there was still a profit of 1.67 billion euros.
The corona boom came to an abrupt end at the biotech company BioNTech. In the completed second quarter to the end of June, the group recorded a net loss of 190.4 million euros. In the same quarter of the previous year, BioNTech had still made a profit of 1.67 billion euros, as the company announced. Sales fell to 167.7 million euros – from 3.2 billion in the same period last year.
Declining Covid-19 vaccine business
Similar to US partner Pfizer, the significantly declining business with the Covid 19 vaccine Comirnaty is having a strong impact on the balance sheet. BioNTech’s sales of the vaccine fell to 1.4 billion euros in the first half of the year – after 9.57 billion in the same period last year.
BioNTech also cited Pfizer writing down Comirnaty inventory that was expired or about to expire. These would have significantly reduced BioNTech’s gross profit share from the sale of the vaccine and thus also had a negative impact on sales and profits.
Focus on developing therapies against cancer
Despite the lower sales, the Mainz-based company still spent a lot of money on research and development. At a good 373 million euros in the second quarter, these costs were only 6.5 percent below the previous year’s level. For some time now, however, BioNTech has been focusing more on cancer research, in which the company has its roots, and is driving the development of numerous drugs in the pipeline.
“Our goal is to become an approved product line company by investing in our own clinical programs and complementing them with additional drug candidates from our partners,” said CFO Jens Holstein. “Given some uncertainty about revenue, we are also carefully monitoring our expenses by reviewing our cost base.” For the year as a whole, BioNTech is therefore only planning research expenditures of two to 2.2 billion euros instead of 2.4 to 2.6 billion. Holstein is also stepping on the brakes when it comes to capital expenditure, as well as selling and administrative expenses.
BioNTech stuck to its forecast for the full year and continues to expect sales of around five billion euros from Covid-19. The company noted that it received multiple payments after the end of the second quarter, including an approximately €1.06 billion compensation payment from partner Pfizer for BioNTech’s share of gross profit for the first quarter of 2023.
New vaccine in September
BioNTech is expected to launch an adapted Covid-19 vaccine in September. Subject to approval, the delivery of the vaccine, which is adapted to the corona variant XBB.1.5 – a sub-variant of Omicron, should then begin.