On Monday, BioNTech announced solid fourth-quarter earnings as it shared a dull 2023 outlook for its sales outlook. Its stock price dropped by -3.59% to $123.60 per share on March 27. However, it is expected to go up by 0.71% to $124.48 apiece in the upcoming session.
Its earnings per share increased to $9.26, beating the analysts’ forecast of $8.12. In addition, it is better than the previous $6.98 data. Moreover, its revenue rose by $4.28 billion, higher than the $3.78 billion consensus, surpassing the prior $3.45 figures.
The company noted that its efforts in adapting the COVID-19 vaccine are anticipated to increase demand for the product this year. Last fall, BioNTech released its first omicron-adapted booster with Pfizer. It sold roughly 550 million doses in mid-December.
However, the firm added that it looks forward to lesser primary series vaccinations and lower booster uptake this 2023. Also, it is dealing with a supply contract with the European Union’s executive body. The deal can possibly spread vaccine shipments across multiple years and reduce volume.
Furthermore, BioNTech is the most recent company to show a plunge in demand for COVID-19 products as there is recovery from the pandemic. Its partner Pfizer said it expects sales to drop by 64.00% this year. In addition, its antiviral treatment, Paxlovid, has a 58.00% drop.
Demand Drop for COVID-19 Vaccines Affects BioNTech
After worldwide recognition over the past three years, 2023 is becoming a heavy stage for BioNTech. Also, it warns investors of a crucial sales slowdown during its market transformation.
Last year, it had global sales of $18.70 billion, beating its November guidance range. However, the company’s 2023 expectations shocked analysts.
This year, a problem with its sales potential is the renegotiation of the biotech’s supply agreement in Germany with Europe. As a result, it can delay deliveries over multiple years. In addition, it can cut previously contracted volumes.
On the other hand, as the pandemic eases, the government will stop funding significant vaccine sales. BioNTech and other businesses are waiting for a change to a private market model.