BioNTech's stock sinks after earnings miss, as inventory writedowns weigh

By Tomi Kilgore

Stock falls to lowest price seen since January 2021

Shares of BioNTech SE sank toward a more than two-year low Wednesday, after the Germany-based biotechnology company reported fourth-quarter results that fell sharply below expectations, weighed down by inventory writedowns by COVID-19 vaccine collaboration partner Pfizer Inc.

While the company said it maintained its "leading position" in the COVID-19 vaccine market, despite continued declines vaccine sales, it also touted progress in cancer treatments, saying it plans to at least 10 trials running by the end of 2024 with a first oncology launch in 2026.

The stock (BNTX) dropped 5.8% in premarket trading, putting it on track to open around the lowest levels seen since January 2021.

Net profit for the quarter to Dec. 31 dropped to EUR457.9 million ($496.5 million), or EUR1.90 a share, from EUR2.28 billion, or EUR9.26 a share, in the same period a year ago. That missed the FactSet consensus for earnings per share of EUR2.37.

Total revenue sank 65.4% to EUR1.48 billion ($1.60 billion), below the FactSet consensus of EUR1.84 billion.

The company said inventory writedowns by Pfizer (PFE) reduced revenue by EUR291.3 million.

BioNTech said that with Pfizer, it delivered their Omicron XBB.a.5-adapted COVID-19 vaccine. In 2023, the companies delivered more than 400 million COVID-19 vaccine doses worldwide, down from about 550 million doses in 2022.

"In oncology, we have strengthened our core competencies by entering into several partnerships and have made numerous clinical advances," said Chief Executive Ugur Sahin. "Today, our oncology pipeline encompasses multiple candidates in mid- and late-stage clinical development, including investigational ADCs, mRNA vaccines and innovative immunotherapies."

For 2024, the company expects revenue of EUR2.5 billion to EUR3.1 billion, compared with the current FactSet consensus of EUR3.1 billion.

The U.S.-listed shares have dropped 10.8% year to date through Tuesday, while the S&P 500 index has gained 8.6%.

-Tomi Kilgore

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03-20-24 0730ET

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