BioNTech (22UAy.DE) announced its expectations of a return to revenue growth by 2025, signaling optimism for the future.
The German biotech company, renowned for its collaboration with Pfizer (PFE.N) on COVID-19 vaccines, anticipates a turnaround as the decline in its COVID-19 vaccine business stabilizes.
Subsequently, BioNTech intends to allocate resources to expand its oncology business.
For the year 2024, BioNTech forecasts total revenue of approximately 3 billion euros ($3.28 billion), a slight decrease from its initial target of 4 to 5 billion euros for 2023.
In a statement, BioNTech stated, “BioNTech expects to grow its topline again in 2025.”
This projection, however, did not meet the average analyst revenue estimate provided by LSEG, which ranged between 3.6 billion and 3.8 billion euros, causing a 0.9% drop in the company’s German-traded shares at 1235 GMT.
The company’s outlook for 2025, as outlined in a presentation for the JP Morgan Healthcare Conference in San Francisco, suggests that higher prices for vaccines, particularly as government-sponsored schemes evolve into commercial market models, will contribute to revenue growth.
BioNTech is also exploring the potential of combining its mRNA technology for COVID-19 with vaccines for other respiratory illnesses like seasonal flu as a means to boost revenue.
In a move that reaffirms its commitment to its roots in oncology, BioNTech has announced plans to initiate at least 10 late-stage cancer drug studies by the end of 2024.
The company aims to launch its first oncology drugs starting in 2026, further diversifying its portfolio.
Ugur Sahin, CEO, and co-founder of BioNTech, expressed the company’s dedication to vaccine development and oncology research.
He stated, “We continued our vaccine leadership in the fight against COVID-19 and significantly expanded our mid- and late-stage oncology pipeline.”
With a substantial cash reserve of approximately 17.5 billion euros, inclusive of cash equivalents and security investments by the end of 2023, BioNTech anticipates generating significant interest income in 2024 due to higher interest rates.
The company remains confident in its financial position.
BioNTech plans to provide detailed guidance for the full year 2024, along with its 2023 financial results, on March 20.
This forward-looking approach reflects the company’s commitment to innovation and growth in both the vaccine and oncology sectors.