German biotech company BioNTech SE (NASDAQ: BNTX) declined at the time of writing on Monday even as the company’s losses narrowed in Q2 to €0.79 per share as compared to diluted earnings of €6.45 per share in the same period last year. However, the company’s sales cratered by 94.8% year-over-year to €167.7 million in the second quarter.
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The company stated in its press release that write-offs by its collaboration partner, Pfizer (PFE) dragged down BioNTech’s gross profit share in the second quarter and “negatively influenced its revenues.”
Jens Holstein, CFO of BioNTech commented, “The COVID-19 vaccine market remains highly dynamic and difficult to fully predict. Along with our partner Pfizer, the Company continues to focus on supporting successful vaccinations during the autumn respiratory infection season.”
Holstein added that “with some uncertainty on the revenue line,” the company is closely watching its expenses by “revisiting our cost base.”
The company reiterated its outlook for FY23 COVID-19 vaccine revenues and expects them to be around €5 billion. BNTX anticipates further curtailing its expenses and now expects FY23 research and development costs and SG&A expenses to be in the range of €2,000 million to €2,200 million and between €600 million and €700 million, respectively. Its prior guidance expected R&D costs and SG&A expenses to be in the range of €2,400 million to €2,600 million and between €650 million and €700 million, respectively.
Analysts are cautiously optimistic about BNTX stock with a Moderate Buy consensus rating based on six Buys and six Holds.
