Corona vaccines are collecting dust
Biontech receives its sales forecast
November 6th, 2023, 2:16 p.m
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In the corona pandemic, Biontech is earning billions of euros with its vaccine. But with the end of the pandemic, demand for the vaccines will also fall. For the second time this year, Biontech has had to lower its forecast.
The Mainz-based biotech group Biontech is lowering its sales forecast for this year due to the slump in demand for corona vaccines and reducing its research budget again. As of now, the company expects sales of around four billion euros from Covid vaccines for 2023, the company reports. So far, the people of Mainz were expecting around five billion. Last year, sales were 17.3 billion euros.
The lowering of the targets had already become apparent: After the US partner Pfizer announced a drastic reduction in its sales and profit targets as well as billions in depreciation in October, Biontech also announced that it would examine the effects on its business. The depreciation at Pfizer ultimately affects Biontech less than feared. “The good news is that the devaluations that occurred on our side were already largely reflected in our financial results in the 2022 financial year and, to a lesser extent, this year,” explains CFO Jens Holstein. The company now estimated the impact at 500 million euros in the third quarter.
Biontech reports net profit
Analysts had expected a loss, but Biontech was able to make a net profit of 160.6 million euros. In the same period last year there was an increase of 1.78 billion euros. Sales fell to a good 895 million from 3.46 billion euros a year ago.
The corona pandemic generated billions in sales for the manufacturers of Covid-19 vaccines, but when it ended, demand for the vaccines also fell. Vaccination fatigue became increasingly widespread, including with booster vaccinations adapted to new variants. As early as August, Biontech referred to the first write-offs by its partner Pfizer on vaccine stocks that had expired or were about to exceed their expiry date.
Strongly positioned
The Mainz company therefore incurred a loss in the second quarter. Back then, Biontech reduced its planned research spending to 2.0 to 2.2 billion euros and has now capped this again to 1.8 to 2.0 billion. “In connection with the approximately four billion euros in sales revenue, we have reduced the relevant cost drivers for 2023 as part of the effective management of our expenses,” said Holstein. Selling and administrative costs as well as capital expenditure are also expected to be lower than initially planned.
However, Biontech still sees itself in a strong financial position: “Around 17 billion euros in cash and securities investments offer strategic flexibility,” emphasized Holstein. Since the beginning of the third quarter, Biontech has made further progress in its drug pipeline by starting several clinical studies in advanced phases of development. At least ten ongoing registration studies are planned until the end of 2024.