Biontech cancels its sales forecast
The Mainz-based biotech group Biontech is lowering its sales forecast for this year due to the slump in demand for coronavirus vaccines and is once again reducing its research budget. For 2023, the company now expects sales of Covid vaccines to amount to around four billion euros, the company announced. Previously, the Mainz-based company expected sales of around five billion. Last year, sales still amounted to 17.3 billion euros.
The lowering of the targets had already become apparent: After its US partner Pfizer announced a drastic reduction in its sales and profit targets in October, as well as billions of euros in write-downs, Biontech also announced that it would review the impact on its business. However, the write-downs at Pfizer ultimately had less of an impact on Biontech than had been feared. "The good news is that the write-downs on our side were already largely included in our financial results in the 2022 financial year and to a lesser extent this year," explains CFO Jens Holstein. The company now puts the impact at 500 million euros in the third quarter.
Biontech reports net profit
Analysts had expected a loss, but Biontech was able to report a net profit of 160.6 million euros. In the same period of the previous year, the company had reported a profit of 1.78 billion euros. Turnover slumped from 3.46 billion euros a year ago to just over 895 million euros.
The coronavirus pandemic generated billions in sales for manufacturers of Covid-19 vaccines, but the end of the pandemic also saw a decline in demand for the vaccines. Vaccination fatigue became increasingly widespread, including for booster vaccinations adapted to new variants. As early as August, Biontech referred to initial write-offs at its partner Pfizer for vaccine stocks that had expired or were about to expire.
Strong position
As a result, the Mainz-based company incurred a loss in the second quarter. Even then, Biontech reduced its planned research expenditure to between 2.0 and 2.2 billion euros and has now cut this again to between 1.8 and 2.0 billion euros. "In connection with the sales revenue of around four billion euros, we have reduced the relevant cost drivers for 2023 as part of the effective management of our expenditure," said Holstein. Selling and administrative expenses as well as capital expenditure are also expected to be lower than initially planned.
Nevertheless, Biontech believes it is still in a strong financial position: "Around 17 billion euros in cash and cash equivalents and investments in securities offer strategic flexibility," emphasized Holstein. Since the beginning of the third quarter, Biontech has made further progress in its drug pipeline with the start of several clinical trials in advanced phases of development. At least ten ongoing approval studies are planned until the end of 2024.
Source: www.ntv.de
