Fewer vaccinations

End of pandemic brings BioNTech profit slump

(Bild: AP/Pfizer)

The German biotech company BioNTech felt the effects of the slump in demand for coronavirus vaccines last year. This development had already been apparent throughout last year, as demand for Covid vaccines fell significantly with the end of the pandemic. Vaccination fatigue spread among many people, despite the boosters adapted to new variants.

Sales fell from 17.3 billion euros in 2022 to 3.8 billion euros, as BioNTech announced on Wednesday. Net profit shrank from 9.4 billion euros to just over 930 million euros.

Slump also at US partner Pfizer
The US partner Pfizer had already reported a slump in sales and profits in January. Both companies were affected last year by write-downs at Pfizer on vaccine inventories, which had expired or were about to expire. This reduced BioNTech's sales revenues by almost 907 million euros.

(Bild: AFP)

The company has specified its forecast for this year and expects sales of EUR 2.5 to 3.1 billion - depending, for example, on demand for Covid vaccines and prices as well as risks from further write-downs on inventories at Pfizer. In January, BioNTech had forecast sales of around 3 billion and a return to growth in 2025. The company confirmed that its first cancer drug will be launched in 2026. By 2030, BioNTech aims to have achieved approvals in a total of ten indications.

Ample financial resources available
"We believe we have multiple opportunities to achieve our goal. Our licensed assets are now contributing to value creation," said Chief Medical Officer Özlem Türeci. She confirmed that BioNTech aims to have ten or more potentially approval-relevant studies in the pipeline by the end of 2024. This will cost a lot of money: BioNTech is planning research and development costs of EUR 2.4 to 2.6 billion this year, after EUR 1.78 billion in 2023. BioNTech can draw on a substantial financial cushion of EUR 17.7 billion in cash and cash equivalents and securities held.

BioNTech also announced the appointment of a second woman to the Management Board alongside company co-founder Türeci - the wife of CEO Ugur Sahin. Annemarie Hanekamp, who comes from the Swiss pharmaceutical company Novartis, is to take over the role of Chief Commercial Officer on the Management Board in July. She succeeds Sean Marett, who is retiring.