2023-11-06 12:20:15
The German biotechnology group BioNTech is lowering its sales forecast for this year and reducing its research budget once more due to the slump in demand for corona vaccines. For 2023, BioNTech now expects sales of Covid vaccines of around 4 (2022: 17.3) billion euros, as the company announced on Monday. Previously, the company had expected around 5 billion.
The reduction in targets had already become apparent: After the US partner Pfizer announced a drastic reduction in its sales and profit targets as well as billions in depreciation in October, BioNTech also announced that it would examine the effects on its business.
The write-downs at Pfizer ultimately burden BioNTech less than feared. “The good news is that the devaluations that occurred on our side were already largely reflected in our financial results in the 2022 financial year and, to a lesser extent, this year,” explained CFO Jens Holstein.
The company now estimated the impact at 500 million euros in the third quarter – depreciation of up to 900 million was initially threatened. Analysts had expected a loss, but BioNTech was able to make a net profit of 160.6 million euros. In the same period last year there was an increase of 1.78 billion euros. Sales fell from 3.46 billion euros a year ago to a good 895 million euros.
The corona pandemic generated billions in sales for the manufacturers of Covid-19 vaccines, but when it ended, demand for the vaccines also fell. Vaccination fatigue became increasingly widespread, including with booster vaccinations adapted to new variants. As early as August, BioNTech referred to the first write-downs at its partner Pfizer on vaccine stocks that had expired or were regarding to exceed their expiration date. BioNTech therefore incurred a loss in the second quarter.
Back then, BioNTech reduced its planned research expenditure to 2.0 to 2.2 billion euros and has now capped this once more to 1.8 to 2.0 billion euros. “In connection with the approximately 4 billion euros in sales revenue, we have reduced the relevant cost drivers for 2023 as part of the effective management of our expenses,” said Holstein. Selling and administrative costs as well as capital expenditure are now expected to be lower than initially planned.
However, BioNTech still sees itself in a strong financial position: “Around 17 billion euros in cash and securities investments offer strategic flexibility,” emphasized Holstein. Since the beginning of the third quarter, BioNTech has made further progress in its drug pipeline by starting several clinical trials in advanced stages of development. At least ten ongoing registration studies are planned until the end of 2024.
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