Key Takeaways
- BioNTech posted a much bigger-than-expected second-quarter loss Monday as demand for COVID-19 vaccines slid following the ending of the pandemic.
- The company also chose to no longer participate in a joint venture with biotech firm Genmab on a lung cancer treatment.
- ADRs of BioNTech tumbled to their lowest level since 2020.
American depositary receipts (ADRs) of BioNTech (BNTX) fell Monday after the COVID-19 vaccine maker’s second-quarter loss quadrupled on falling demand for the shots, and as it ended an agreement with biotech firm Genmab to develop a lung cancer drug.
BioNTech reported a quarterly loss of 807.8 million euros ($886 million), or EUR3.36 per share, much wider than analysts polled by Visible Alpha expected. Revenue fell 23.3% year-over-year to EUR128.7 million, which was above forecasts.
The company noted that the decline in sales of its COVID-19 vaccine was the result of “the continued shift in demand from a pandemic to a seasonal endemic COVID-19 vaccine market.”
CEO Says BioNTech Has Shifted Focus To Cancer Treatments
Co-founder and Chief Executive Officer (CEO) Dr. Ugur Sahin explained that BioNTech has shifted its focus to producing cancer treatments, noting that 2024 “has been marked by significant data updates across our oncology portfolio.”
However, the company also announced that despite studies that show encouraging results from the small-cell lung cancer treatment it has been working on with Genmab (GMAB), it has chosen not to participate in further development of the program “for reasons relating to portfolio strategy.” That includes a planned Phase 3 trial. The company added that Genmab will “continue their collaboration under the existing agreements,” which were expanded in 2022.
ADRs of BioNTech dropped 5.3% as of 10:25 a.m. ET Monday to $77.64, their lowest level in almost four years. Genmab ADRs fell about 7% to $26.29.