BioNTech lowers expectations as Covid jab demand wanes

(Sharecast News) - BioNTech revised its full-year revenue projection downwards on Monday, reducing it by around €1bn due to decreased demand for the Covid-19 vaccine it co-developed with Pfizer. In a statement, the German biotechnology firm adjusted its full-year Covid-19 vaccine revenue forecast to €4bn, down from the previously expected €5bn and last year's reported €17.2bn.

BioNTech relies on profit-sharing payments related to vaccines from its US partner for a significant chunk of its revenue.

The company explained that the write-downs disclosed by Pfizer in mid-October would reduce its third-quarter revenues by €508m - less than the initial estimate of up to €900m.

"Charges which originated at BioNTech's end have largely already been reflected in our 2022 financial results and to a smaller extent were continued to be reflected during 2023," said the firm's head of finance, Jens Holstein.

BioNTech said it was refocusing on its growing development pipeline in oncology, including leveraging the mRNA technology used in the vaccine and developing precision anti-cancer drugs known as antibody-drug conjugates, as well as therapies based on modified immune cells.

The company's third-quarter revenue totalled €895m, aligning closely with consensus expectations but much lower than the €3.46bn reported a year earlier.

Reporting by Josh White for Sharecast.com.