BioNTech’s total revenue in the first quarter of 2024 nosedived to around $202 million, a sharp decline from nearly $1.38 billion during the same time period last year, the German biotech reported on Monday.
BioNTech suffered a net loss of almost $340 million during Q1, or $1.41 per share. Analysts had expected a $0.78 drop in earnings per share (EPS), according to stocks analysis firm Zacks Investment Research. By comparison, in Q1 of 2023, BioNTech reported a net profit of approximately $541 million, or $2.21 per share.
The company attributed the plunge in the latest quarter to “lower commercial revenues” from the sales of its COVID-19 vaccine worldwide, which it said was largely driven by the “endemic-level demand” for the shot.
Also contributing to the biotech’s net loss was a more aggressive investment strategy in research and development. BioNTech pumped around $546 million into its R&D activities, up from nearly $360 million during the same period last year. The increase in spending was due to progressing clinical studies and a larger workforce, resulting in greater wage, benefits and social security expenses.
Despite a steep drop in its Q1 revenue, CEO Ugur Sahin struck a positive note in the company’s statement on Monday, focusing instead on BioNTech’s pipeline and upcoming milestones.
“In the past weeks, we have reported positive preliminary data for both our individualized and off-the-shelf mRNA-based candidates,” which further demonstrate the strong potential of the biotech’s core technologies, Sahin said. For 2024, BioNTech plans to develop a variant-adapted COVID-19 vaccine, as well as advance its cancer programs, paying particular focus on its bispecific antibody and antibody-drug conjugate (ADC) assets.
Seeking to establish its footing in a post-COVID-19 world, BioNTech has upped its investments in oncology as a way to diversify its business. In October 2023, the biotech inked a potential $1 billion deal with Suzhou-based biotech MediLink Therapeutics to develop next-generation ADCs targeting the HER3 protein.
BioNTech in February 2024 also entered into a $250 million licensing and manufacturing agreement with Autolus Therapeutics to advance investigational CAR-T therapies for solid tumors.
Looking ahead to the rest of the year, BioNTech forecasts total group revenue of $2.69 billion to $3.34 billion. The company on Monday said that nearly all its expected 2024 revenues would come in at the end of the year. As of March 31, 2024, BioNTech had almost $18.25 billion in cash, cash equivalents and security investments.
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