BioNTech, the German pharmaceutical giant that became a household name during the Covid pandemic, has stacked up huge losses.
In the second quarter of 2024, it recorded a deficit of €807.8 million, quadrupling the losses in the same period last year.
Combining the first two quarters of this year, BioNTech’s total net loss amounted to €1.12 billion.
Last year, the company made a profit of €311.8 million in the first two quarters.
The pharma giant experienced a 23 per cent decrease in revenue to €128.7 million in the second quarter, primarily down to reduced sales of its Covid vaccines, which were developed in collaboration with its US partner Pfizer.
The poor results came as, globally, business related to Covid medications all but collapsed, while the stock market in general has tended to be less buoyant than before.
According to CFI Jens Holstein, the German company has reached a low point and demand for its products should increase in the autumn.
“Our second-quarter revenues correspond to the current demand of a seasonal endemic Covid-19 vaccine market,” Holstein said on August 5.
“Supported by our strong financial position, we will continue to focus on our long-term growth strategy throughout the remainder of the year,” he added.
BioNTech is finalising the market launch of a new Covid vaccine for the 24/25 season. It is also working on a new cancer drug.
The company noted in its financial report that around 90 per cent of its total research and development investments have been made in non-Covid related activities, mainly oncology and in further development of mRNA-based treatments.
For the six months ended June 30, 2024, research and development expenses were €1,092.1 million, compared to €707.4 million for the comparative prior year period.
BioNTech’s shares tumbled more than 6 per cent August 5 amid a wider market sell-off.
During the peak of the Covid pandemic, the company’s share price surged from €89 to €323 over a few months. After reaching an all-time high of €326.20 in November 2021 – the height of the pandemic – it began a steep decline.
As of writing, on August 6 this year the share price stood at €72.80.
