- BioNTech’s long-term outlook helped it shrug off a first-quarter loss and sinking revenue as demand for COVID-19 vaccines declined.
- CFO Jens Holstein said the drop for the shot was seasonal, and the company expected 90% of its revenue coming later in the year.
- Holstein noted that BioNTech has billions in cash on hand to drive the company’s efforts into treatments for cancer.
American depositary receipts (ADRs) of BioNTech (BNTX) were down less than 1% in intraday trading Monday after the COVID-19 vaccine maker shrugged off losses and tumbling sales in the first quarter, giving a positive outlook for the year.
Slumping COVID-19 Vaccines Demand Affects Results
The German biotech firm, which collaborated with Pfizer (PFE) on a COVID-19 vaccine, reported a loss per share of 1.31 euros ($1.41), with revenue plunging 85% year-over-year to EUR187.6 million ($202.3 million). Both were worse than expected as demand for the shot slumped since the end of the pandemic.
However, CFO Jens Holstein said that first-quarter revenues “reflect the seasonal demand for COVID-19 vaccines, and we expect to recognize approximately 90% of our full year revenues in the last months of 2024, mostly in Q4 of 2024.”
‘Strong Cash Position’
Holstein added that the company has a “strong cash position” of EUR16.9 billion ($18.2 billion), which he argued makes it well positioned to expand its business into treatments for cancer.
The company affirmed its full-year guidance of revenue between EUR2.5 billion and EUR3.1 billion ($2.7 billion and $3.3 billion).
BioNTech ADRs have lost about 13% of their value in 2024.