BioNTech : will 2021 be the best year in the company’s history ?

BioNTech : will 2021 be the best year in the company’s history ?

29 June 2021Reading time: 3 minutes

The German biotechnology company gained notoriety with its COVID-19 vaccine produced in cooperation with the US pharmaceutical group Pfizer. This first successful use of a vaccine based on the mRNA technology has sparked excitement in financial markets for the BioNTech stock. The company’s stock price significantly increased since the begin of the year.

The most widely used COVID-19 vaccine in the EU

The German company founded in 2008 became famous last year for its vaccine against COVID 19 using the mRNA technology. This was one of the first successful use of the mRNA technology for a vaccine. The clinical trials for the vaccine ran in cooperation with Pfizer showed a very high efficacy rate (more than 90% efficacy according to the test results published) and, as a result, it was authorized in several countries such as the United States, Japan, Israel, the United Kingdom and the European Union. The Pfizer-BioNTech vaccine is currently the most commonly used vaccine against COVID 19 in the European Union and it is currently used in 104 countries.
To develop its vaccine, BioNTech received financings from European Union (EUR 100 million), from Germany (EUR 375 million) and also a USD 185 million financing from Pfizer. 
BioNTech’s research fields does not only include vaccines using the mRNA technology, but also individualized cancer treatments. Individual treatment cancer has always been at the core of the company and developing treatments using new biotechnologies one of its primary goals. The company is currently running trials for a treatment against cancer.

BioNTech’s revenues significantly increased

From 2019 to 2020, the company’s revenue significantly increased. This revenue increase is mainly due to the contracts signed in 2020 for the delivery of the vaccine against the COVID-19. These contracts include the delivery of 100 million doses to the United States at USD 19.50 per dose and the delivery of 300 million doses to the European Union at EUR 12.00 per dose (the contracts were respectively signed in July 2020 and in November 2020). BioNTech’s revenue reached EUR 303 million in 2020 compared to 24 million in 2019. In 2020, the company was also able to generate a profit: EUR 15 million compared to a EUR 179 million loss according to BioNTech’s 2020 annual report.
The company’s revenue also significantly increased during the first quarter of 2021 due to the effective delivery of the vaccine in several countries. According to BioNTech’s 2021 Q1 financial report, the company’s revenue reached EUR 2,048 million in the first quarter of 2021 compared to EUR 27 million in the first quarter of 2020. The company’s profit also significantly increased, reaching EUR 1,128 million after tax compared to a EUR 53 million loss for the first quarter of 2020.

Stock overview

Since its IPO in 2019, BioNTech is listed at the NASDAQ. Over a one year period its stock price significantly increased going from USD 51.36 (closing price) on June 19th 2020 to USD 212.42 (closing price) on June 18th 2021. The company’s stock price reached its 52-week low on June 19th 2020 when the share traded at USD 49.91. It reached its 52-week high on June 7th 2021 trading at USD 252.78.  
The future price of the stock is subject to several political, industrial and sector specific as well as economic factors. Investors should consider these risks when making their investment decisions. Developments can be different at any time than investors anticipated on, which could result in capital losses.

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06/12/2021 16:43:43