Biontech founders Özlem Türeci and Ugur Sahin (right).
(Photo: dpa)
Frankfurt As expected, business with Covid-19 vaccines fell sharply at Biontech in the first quarter. The Mainz-based company recorded a four-fifths drop in sales to 1.28 billion euros, but did better than analysts had expected.
Net profit shrank to almost a seventh of the previous year’s figure: from January to March, Biontech earned 502 million euros, compared to around 3.7 billion euros in the same quarter of the previous year. But even with this, the biotech company was above the forecasts of the analysts – and significantly so. According to Bloomberg, the market expectation was only around 200 million euros in net profit.
Biontech reiterated its forecast of generating sales of around five billion euros with Covid-19 vaccines this year. In 2022 it was still more than 17 billion euros. The reported Covid-19 sales consist primarily of earnings from the partnership with the US group Pfizer. The companies co-developed the mRNA-based vaccine Comirnaty and share gross profits from the business, with Pfizer accounting for the majority of sales.
Biontech’s strategic focus is currently on the further development and expansion of its drug pipeline – with a focus on oncology. Overall, the company intends to invest up to 2.6 billion euros in research and development this year. The high earnings from the vaccine business provide scope for this: At the end of March, Biontech had cash reserves of almost 19 billion euros, including receivables from the business with Pfizer.
In the past few weeks, the Mainz-based company had bought three new drug candidates against tumor diseases. In March, the global rights to a potential cancer immunotherapy developed by private US company OncoC4 were acquired for $200 million. This antibody-based drug aims to boost immune responses against cancer cells.
Biontech: Development of cancer drugs strengthened
So far, the active ingredient has been tested in phase 1 and 2 clinical studies for tolerability and effectiveness. A larger so-called phase 3 study is to be started this year, which could then also deliver results relevant to approval. The active ingredient is being tested in patients with non-small cell lung cancer whose disease has progressed after treatment with other antibody therapies.
In early April, Biontech also announced a potentially multi-billion dollar partnership with Chinese biotech firm Duality Bio. Biontech secured two drug candidates for the treatment of solid tumors. These are so-called antibody-drug conjugates that combine chemotherapy with the targeted effect of antibody therapy.
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Duality Bio will receive an upfront payment of $170 million and is eligible for a potential of more than $1.5 billion in contingent payments and tiered royalties on potential future product sales.
Biontech is working on vaccines against shingles and tuberculosis
In addition to starting and preparing several clinical trials, Biontech also plans to establish a sales organization for oncology products in the US, EU and other selected regions this year and next. Beyond oncology, the Mainz-based company is also working on vaccines against shingles and tuberculosis as well as a new generation of Covid-19 vaccines.
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First publication: 08.05.2023, 12:45 p.m.