The development of vaccines against the coronavirus has generated significant profits for manufacturers in recent years. However, little can be seen of the former dairy cow at the moment. The collapse in demand for the vaccine is now causing financial problems for pioneers Biontech.
After American partner Pfizer announced a drastic reduction in its turnover and profit targets and billions in write-offs a few days ago, Biontech is also examining the impact on its activities.
The company therefore expects a write-down of up to 900 million euros for the third quarter, Biontech announced on Monday. This corresponds to half of the gross profit share from the agreement with Pfizer. “Such writedowns will reduce the revenue the company would report for 2023.”
Stocks falling
Biontech shares fell by more than seven percent to 93.72 euros on the Frankfurt stock exchange. Pfizer massively cut its annual targets on Friday as business with its Covid-19 drug Paxlovid and the Comirnaty vaccine developed with Biontech were weaker than expected at the end of the corona pandemic.
The depreciation and charges in the third quarter therefore amount to a total of 5.5 billion dollars (5.2 billion euros), of which 4.6 billion dollars are charged to Paxlovid and the remainder to Comirnaty.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
