Biontech reports massive losses of millions
Biontech, the golden goose among German companies thanks to the Corona vaccine Comirnaty, is now deep in the red due to declining sales and higher research costs. In the second quarter, the company reported a net loss of over 807 million euros, compared to a loss of around 109 million euros in the previous year. Revenue fell to 128.7 million euros from 167.7 million euros. "Our second-quarter revenues reflect the current market demand for a seasonal endemic Covid-19 vaccine," said Chief Financial Officer Jens Holstein.
Biontech had already felt the end of the pandemic and the decline in demand for Corona vaccines in the previous year, leading to a significant drop in revenue and profits. The company is now focusing on the development of its cancer medicines and aims to launch its first product in 2026.
In late July, the company achieved an important study success with one of its most advanced mRNA projects. The first potential mRNA cancer drug, BNT111, in a phase 2 clinical study, met the primary goal of the investigation.
Transition to a Multi-Product Company
Research and development costs in the second quarter rose to 584.6 million euros, compared to 373.4 million euros in the previous year. "We will focus on our long-term growth strategy for the remainder of the fiscal year, supported by our strong financial position," said Holstein. The goal is to transform Biontech into a multi-product company.
For the full year, the company expects revenue of 2.5 to 3.1 billion euros (2023: 3.8 billion euros) and research expenses to remain unchanged at 2.4 to 2.6 billion euros. The company's stock fell by almost six percent at one point in Frankfurt and later recovered some of its losses.
The economic downturn in the demand for Corona vaccines has significantly impacted Biontech's revenue, leading to a decline in overall profits. Moreover, the company is aiming to diversify its product portfolio and become a multi-product company, as indicated by Holstein.
