With COVID vaccine demand in free fall, BioNTech's revenue plummets nearly 50% in second quarter.

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by Al_Sharpton_for_President   $0.12 total tips   💰tip   follow   2022 Aug 8, 9:58am  

After four consecutive quarters in which revenue topped 5 billion euros ($5.1 billion)—nearly all of it attributed to sales of its Pfizer-partnered COVID-19 vaccine—BioNTech is coming to grips with a decline in demand for the shot, known commercially as Comirnaty.

And the fall is coming quicker than expected. On Monday, the German company reported revenue of 3.2 billion euros ($3.3 billion) for the second quarter. It was a 40% decline from the same period last year and nearly a 50% drop from the company's first quarter revenue figure of 6.4 billion euros.

The performance was significantly shy of Wall Street’s second quarter revenue expectation of 3.96 billion euros. With the news, BioNTech's share price dropped 8% by mid-morning.

“The development of the pandemic has been and remains dynamic, causing a rephasing of orders, with this leading to fluctuations in quarterly revenue,” chief financial officer Jens Holstein said on a conference call.

Much of the shortfall can be attributed to delays in vaccine deliveries to the European Union, the company said. In May, BionTech and Pfizer said they were pushing deliveries due for June through August to beyond September.

As for the United States, BioNTech's chief strategy officer Ryan Richardson said that an additional vaccine order “will be heavily weighted" in the fourth quarter of 2022.

Despite the performance, BioNTech is not adjusting its 2022 projection for Comirnaty and still expects sales to reach between 13 billion and 17 billion euros. The company projects an uptick in sales later this year with autumn booster campaigns, combined with expected approval of the company’s pair of omicron-adapted vaccines.

BioNTech has begun manufacturing those omicron-tweaked shots, CEO Uğur Şahin said during the call. This month the company expects to begin trials of its vaccine geared to omicron’s BA.4/5 variant, targeting its approval in October.

While the FDA is primarily focused on a BA.4/5-tweaked vaccine, the European Medicines Agency hopes to employ it along with a BA.1-tweaked shot, Sahin said.

Lee Brown, the global sector lead for healthcare at Third Bridge, says much will depend on the new versions of the vaccine.

“The forthcoming launches of the updated COVID-19 vaccines are important, especially for the higher-risk cohorts of the population," Brown wrote. “The U.S. booster market potentially could represent over $7 billion annually for the next several years, even if ongoing booster shots only focus on the 50 and older cohort and other higher risk groups. As such, the COVID-19 vaccine tailwind is expected to continue.”

Contrary to the drop in sales, BioNTech said it is gaining market share. In January of this year, Comirnaty sales accounted for 52% of the worldwide market. But now the figure is 63%, the company said. Over the same period in developed markets, there’s been a rise from 59% to 68% in market share.

Of the 9.6 billion euros ($9.8 billion) revenue figure the company achieved in the first half, 5.4 billion euros ($5.5 billion) were accumulated in net profit. This came despite a rise in operating costs in the second quarter due to 400 million euros ($408 million) in inventory write-offs.

“That is something we had to swallow in Q2,” Holstein said. “It will remain a topic we will have to keep a view on depending on how the pandemic evolves.”

BioNTech isn't alone in having to write off COVID-19 vaccine inventory. Moderna last week recorded a $499 million charge for unused doses amid the global demand slump.


Comments 1 - 5 of 5   

1   WookieMan   2022 Aug 8, 10:11am  

Al_Sharpton_for_President says

And the fall is coming quicker than expected.

No. No one cares about Covid and the vaccine people now realize it is completely useless. My healthy 40 year old buddy, fully vaccinated got pretty sick. 104º fever. Down for 5 days with covid. People will only be dumb for so long. I'm just glad I was never dumb. #pureblood.

Hung out 2 nights this weekend. Anyone vaccinated is not taking the booster(s). I should have shorted this shit/stock. The writing was on the wall. I'm just very conservative with risk. Fuck I might need to take more risk in the future.
2   Patrick   2022 Aug 9, 5:28pm  

WookieMan says

I should have shorted this shit/stock.

Shorting is too dangerous. Buy puts instead. Then your upside is the same, but your potential loss is limited to the cost of the puts.
3   WookieMan   2022 Aug 10, 5:14am  

Patrick says

WookieMan says

I should have shorted this shit/stock.

Shorting is too dangerous. Buy puts instead. Then your upside is the same, but your potential loss is limited to the cost of the puts.

Yeah, but everyone I know that got vaccinated and I mean everyone, is not getting boosters. They thought this was going to be a money train and turn this into another seasonal flu shot. Saw it coming, but didn't research or think of the financial aspect of it. It's marketing 101. They're called boosters to make it sound positive like it will help you. It doesn't.

Everyone I know that's vaccinated has gotten covid. I haven't. At some point it's no longer anecdotal given my sample size. I should have made a risky bet and laid $5k shorting or puts, whatever. I'd have come out a winner either way.

After 30-45 days in '19 I think everyone on this forum knew covid was bull shit. The people that use FB or Twitter as their forum were all brain washed. You literally would get posts deleted/censored on those site if you talked truth about Covid.

We all talked about our experiences here. Some of us had covid. We all knew someone that got it. Free flow of information is important. It was never bad. It's a flu. Now they're trying it again with butt fucker monkeypox. But knocking gays for their habits is taboo. AIDS 2.0. Don't admit what the real problem is that's going on in less than 2% of the population.
4   Misc   2022 Aug 10, 5:24am  

Don't fret about the company's revenue stream.

Xi Biden pre-ordered 100 million doses of their new vaccine with an option to go to 300 million doses.

There will also be a huge fear mongering propaganda campaign across all media channels that runs 24/7 in the Fall.
5   WookieMan   2022 Aug 10, 6:10am  

Misc says

There will also be a huge fear mongering propaganda campaign across all media channels that runs 24/7 in the Fall.

Fear is weakness. I just don't care. If I die of covid, then I do. A fucking meteor could crash through my roof and kill me. Tons of other more likely ways to die than covid. Like exponentially more.

Depending on age, we'll all look back on this in 20-30 years and realize how retarded this was. I think most here already know, but hindsight is 20/20. Covid is going to look dumb. Hell Viagra probably kills more people in early age than Covid has.

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