GERMANY — BioNTech, the German biotech firm that partnered with Pfizer to develop COVID-19 vaccines, has announced a reduction in its 2023 revenue target due to declining demand for the COVID-19 vaccine.
The company initially expected full-year COVID-19 vaccine revenues of 5 billion euros but has now lowered the forecast to about 4 billion euros (US$4.3 billion).
BioNTech’s COVID-19 vaccine generated substantial revenues in 2022, totaling 17.2 billion euros (US$18.5 billion).
While the decrease in revenue projections is significant, BioNTech reported that the impact of write-downs at its U.S. partner, Pfizer, was less than initially anticipated.
In October, Pfizer had indicated that write-downs would affect BioNTech’s third-quarter revenues by up to 900 million euros (US$ 967.7 million).
However, the actual impact has been reduced, with the write-downs contributing to a 508-million-euro reduction in third-quarter revenues.
Jens Holstein, the head of finance at BioNTech, explained, “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.”
BioNTech is now shifting its focus beyond the coronavirus business to its growing development pipeline in oncology.
This pipeline includes mRNA technology, which was pioneered in the COVID-19 vaccine, as well as precision anti-cancer drugs known as antibody-drug conjugates and therapies based on modified immune cells.
Despite this strategic shift, the company has adjusted its 2023 research and development (R&D) budget for the second time.
The new budget range is forecasted to be between 1.8 billion euros (US$1.9 billion) and 2 billion euros (US$ 2.2 billion), down from the previous range of 2 billion euros (US$2.2 billion) to 2.2 billion euros (US$2.4 billion) outlined in August.
Nevertheless, this budget still represents an expansion compared to the 2022 R&D budget of 1.54 billion euros (US$1.7 billion).
BioNTech is actively expanding its clinical trials, with an increase from three to eleven ongoing clinical trials in the second and third stages during the third quarter alone.
In terms of financial performance, BioNTech reported third-quarter revenues of 895 million euros (US$ 964.5 million), which aligns with analyst consensus and represents a significant decrease from the 3.46 billion euros reported a year earlier.
BioNTech and Pfizer have also made progress in vaccine development beyond COVID-19. They recently announced promising results from an experimental vaccine designed to prevent both flu and COVID-19.
The vaccine demonstrated a robust immune response against strains of both viruses in an early- to mid-stage trial, with plans for a late-stage trial in the coming months.
For all the latest healthcare industry news from Africa and the World, subscribe to our NEWSLETTER, and YouTube Channel, follow us on Twitter and LinkedIn, and like us on Facebook.
