:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2095975132-3e74fda0bae940dbaa1be9b7a8ae85e1.jpg "The logo of German biopharmaceutical company BioNTech hangs on an office building on March 19, 2024 in Berlin, Germany")
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What You Need to Know
- BioNTech’s long-term outlook helped it shrug off a first-quarter loss and sinking revenue as bid for COVID-19 vaccines declined.
- CFO Jens Holstein said the drop for the shot was seasonal, and the company expected 90% of its gross income coming later in the year.
- Holstein noted that BioNTech has billions in cash on hand to drive the company’s strains into treatments for cancer.
American depositary receipts (ADRs) of BioNTech (BNTX) were down less than 1% in intraday business Monday after the COVID-19 vaccine maker shrugged off losses and tumbling sales in the first quarter, giving a emphatic 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, sign in 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 envisioned as demand for the shot slumped since the end of the pandemic.
However, CFO Jens Holstein said that first-quarter revenues “suggest 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.”
‘Active Cash Position’
Holstein added that the company has a “strong cash position” of EUR16.9 billion ($18.2 billion), which he indicated makes it well positioned to expand its business into treatments for cancer.
The company affirmed its full-year guidance of interest between EUR2.5 billion and EUR3.1 billion ($2.7 billion and $3.3 billion).
BioNTech ADRs have helpless about 13% of their value in 2024.
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