BioNTech beats forecasts on back of Covid vaccine demand – Financial Times
BioNTech beat earnings and revenue expectations as the Omicron variant spurred strong demand for its Covid-19 vaccine developed with Pfizer.
The German biotech company, which launched the first Covid vaccine in partnership with the US pharmaceuticals group, reported first-quarter revenue of €6.4bn, more than triple the figure from the same period the year before, and higher than the average analyst estimate of €4.6bn.
Diluted earnings per share more than tripled to €14.24, higher than the consensus forecast for €9.71. Net profit was €3.7bn, compared with €1.1bn a year earlier.
Jens Holstein, chief financial officer, said the company was “well-positioned” to achieve its 2022 financial guidance after orders increased from late 2021 as countries used vaccines to tackle the emerging Omicron variant.
However, BioNTech still forecasts that sales will fall year on year, anticipating revenue between €13bn and €17bn, compared with almost €19bn last year.
There is now an oversupply in the Covid vaccine market, which has prompted health analytics firm Airfinity to slash its global sales forecast for the rest of the year by 20 per cent to $64.1bn.
BioNTech sells vaccines directly in Germany and Turkey, and partners Fosun Pharma in Hong Kong, Taiwan and China, and with Pfizer in the rest of the world.
Pfizer and BioNTech have signed orders for about 2.4bn doses in 2022, as of the end of April. They are on track to deliver more than 2bn doses to low and middle-income countries by the end of the year.
It is not yet clear how large the booster campaigns will be later in 2022. BioNTech is working with Pfizer on a vaccine adapted to better protect against disease caused by the Omicron variant. They started a trial for this tweaked vaccine in January and expect to share data from it in the coming weeks.
BioNTech is investing heavily in its broader mission, which includes creating breakthrough cancer drugs, and plans to spend €1.4bn to €1.5bn on research and development this year. The company said the forecast did not include potential mergers and acquisitions or additional collaborations it may enter into this year.
Ugur Sahin, chief executive, said the company had reported “encouraging data” on its first in-human trial of a CAR-T therapy, which engineers T-cells to tackle solid tumours.
“Driven by our execution in innovation, we believe we are well-positioned to achieve multiple product launches in the coming years, which would facilitate significant long-term growth,” he said.
BioNTech also started a share buyback programme this month, which will repurchase up to $1.5bn of stock in the next two years. The group also proposed a dividend of €2 per ordinary share, pending approval at the annual general meeting in June.
