BioNTech Stock Jumps 10% After Strong Earnings Report

Summary

  • German biotechnology firm BioNTech’s revenues rose to €2.05 billion (US$2.49 billion) in the first quarter of 2021, compared to €27.7 million in the year-ago period.
  • The stock gained more than 310% in the past 12 months, mainly driven by vaccine sales.
  • BioNTech’s recent stride in covid vaccines is helping to script a new success story for Germany’s biotech sector.

German biotechnology firm BioNTech’s revenues rose to €2.05 billion (US$2.49 billion) in the first quarter of 2021, compared to €27.7 million in the year-ago period, it said on Monday.

The robust results drove the stock 10% higher at the market close on Monday, May 10. It was trading at US$202.35, up 10.15%. The stock gained more than 310% in the past 12 months. The revenue boost was due to the rapid supplies of covid vaccines worldwide, the company said.

Cost of sales was €233.1 million for the period ended March 31, 2021. Expenses on research and development also saw a major increase to €216.2 million, from €65.1 million in the same quarter of 2020.

The company has supplied over 450 million covid doses to 91 countries as of May 6 and signed deals for the supply of 1.8 billion vaccines. In 2021, it plans to expand its footprint to Asia, where it plans to set up its first headquarters in Singapore.

Pic Credit: Pixabay.

Also Read: Biontech, Pfizer Raise 2021 Vaccine Target By More Than 50%


German Startups In Focus After BioNTech’s Vaccine Success

German biotech startups are drawing increased attention from investors after the huge success of the Mainz-headquartered company BioNTech SE, which has developed the first Covid-19 vaccine in collaboration with the US-based Pfizer Inc.

Germany’s biotech sector, which had struggled to raise venture capital funds in the past, attracted US$3.7 billion in investments, which was triple the amount raised in 2019, after their partnership in 2020, say analysts. The US and Europe had approved the Pfizer-BioNTech vaccine last year.


Also Read:
US Inks Another Deal with Pfizer and BioNTech to Vaccinate Every American by 2021

BioNTech’s success has created a positive climate for investment in German healthcare startups, they say. Its domestic rival, CureVac NV, is also developing a covid drug, and it hopes to get approval from the EU authorities soon.

Although Germany was once a leader in drug development, with discoveries like X-rays and aspirin, it has struggled for funds in recent years. In contrast, the US firms raised US$100 billion in  2020. The lack of government incentives has also been a major dampener for the industry.

But BioNTech’s recent strides is helping to script a new success story for the country’s biotech sector. Companies working on other treatments are also drawing the attention of late. According to investment managers, more and more German investors are showing interest in the sector.

Also Read: Three Industrial Sector Dividend-Paying Stocks To Explore


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