Cash-rich BioNTech Widens Scope As COVID Shot Sales Slide

Germany's BioNTech, a collaborator with Pfizer on the COVID-19 vaccinations, reported that decreasing demand for the shots contributed to a decline in first-quarter net income as it expanded its work on cancer and other disorders. In order to expand its research into cancer treatments, BioNTech, which revealed at the end of March that it had amassed an 18.6 billion euro ($20.55 billion) balance of cash and receivables, has pursued a number of acquisitions and alliance agreements.

The business, which is also developing vaccines for diseases like tuberculosis and shingles, reported that declining COVID-19 vaccine demand caused its quarterly net profit to fall to 502 million euros from 3.7 billion euros a year earlier. The COVID-19 virus, which has killed more than 6.9 million people worldwide, no longer requires a global emergency designation, according to the World Health Organisation, which said other infectious diseases should now be addressed in conjunction with COVID-19. BioNTech updated its forecast, estimating that sales from the shot will drop from 17.2 billion euros in 2018 to roughly 5 billion euros in 2023.

As it recruits scientists and launches more costly late-stage trials, it also reiterated that its research and development (R&D) expenditure would be between 2.4 and 2.6 billion euros this year, up from 1.54 billion euros last year. As it renegotiates a bulk purchase deal, it reaffirmed that it was still in discussions with the European Union about postponing or reducing COVID-19 vaccine supply.