Immunotherapy company, BioNTech (NASDAQ: BNTX) slid in pre-market trading on Monday after the company announced the potential impact of Pfizer’s (PFE) write-offs and other charges related to its COVID-19 vaccine, Comirnaty. BioNTech has announced inventory write-off charges of $0.9 billion related to lower-than-anticipated sales of Comirnaty. The company had developed Comirnaty in collaboration with Pfizer.
BioNTech stated that this write-off will represent the company’s 50% share under its gross profit-sharing agreement with Pfizer. The company anticipates that these charges are likely to drag down its revenues in FY23. BioNTech is expected to release its Q3 results on November 6, 2023.
Is BNTX a Good Stock to Buy?
Analysts are cautiously optimistic about BNTX with a Moderate Buy consensus rating based on three Buys and six Holds. The average BNTX price target of $135.22 implies an upside potential of 30.5% at current levels.
