- Biontech is losing over a billion euros
Biontech Incurs a High Triple-Digit Million Euro Loss in Q2 on the Path to Approving New Products, Including Cancer Treatments
In its pursuit of approving new products, such as cancer treatments, Biontech suffered a significant loss in the second quarter, amounting to 807.8 million euros, more than four times the loss of 190.4 million euros in the same period last year. By the end of the first half of 2024, the net loss had accumulated to 1.12 billion euros, as reported by the Mainz-based company. In contrast, a profit of 311.8 million euros was recorded in the first half of the previous year.
Biontech Aims for First Cancer Approval by 2026
"We are making progress towards our goal of becoming a company with approved medicines for cancer and infectious diseases," said Ugur Sahin, CEO and co-founder of the company. In the second quarter alone, the company invested 525.6 million euros in "non-COVID-19 related activities," primarily in oncology and infectious disease treatments, which accounted for approximately 90% of all research and development costs.
Biontech continues to target its first market approval for a cancer drug in 2026, with plans for annual approvals in oncology thereafter.
For the full year 2024, the company still expects total revenues of 2.5 to 3.1 billion euros, with the majority of revenues expected in the fourth quarter. This projection follows second-quarter revenues of 128.7 million euros (167.7 million in the same period last year).
COVID-19 Vaccine Sales Decline
Biontech attributed the decrease in revenues in the second quarter to shrinking sales of its COVID-19 vaccine, as demand becomes more seasonal. Chief Financial Officer Jens Holstein expects that the lowest point for this business in the current fiscal year has been reached.
The company has begun introducing an adapted COVID-19 vaccine for the 2024/25 flu season, with approvals already granted for the EU and the UK. According to Biontech, applications are pending in more than 40 countries worldwide, with an expected approval in the US by mid-September, as stated by Sahin.
Holstein stated that Biontech will focus on its long-term growth strategy for the remainder of the fiscal year 2024, including the progress of ongoing clinical trials for various cancer types and combined vaccines, such as one for COVID-19 and influenza. The company also plans to expand its production capacities, particularly for mRNA, at its headquarters in Mainz and in Marburg.
Despite the decline in COVID-19 vaccine sales, Biontech is focusing on other revenue streams. The company is actively investing in 'Other' non-COVID-19 related activities, including oncology and infectious disease treatments, to diversify its portfolio.
In the pursuit of its diversification strategy, Biontech is not just aiming for its first cancer approval by 2026 but also planning for annual approvals in oncology thereafter, demonstrating its commitment to the 'Other' therapeutic areas beyond COVID-19 vaccines.
