BNTX - BioNTech: Managements Wants 10 Oncology Drug Approvals By 2030 I'm Skeptical

2024-06-13 17:48:39 ET

Summary

• BioNTech's revenue soared during the COVID era, but the company faces uncertainty with declining vaccine sales and plans for new oncology-focused products.
• The company is shifting focus to oncology programs, aiming for multiple late-stage trials and regulatory submissions, and ten indication approvals by 2030.
• BioNTech's pipeline includes various oncology drugs targeting different proteins in cancer cells, with potential for 10 indication approvals by 2030.
• In this post I provide a whistle-stop tour of the current pipeline and opportunities relative to where the industry is.
• I am not especially encouraged, but with COVID funds and management's track record, BioNTech can afford to move at its own pace.

Investment Overview

BioNTech ( BNTX ), the Mainz, Germany based biotech company founded by the husband and wife team Professor Ugur Sahin and Dr. Özlem Türeci, will forever be associated with the COVID pandemic, and the messenger-RNA vaccine against SARS-Cov-2 the company developed alongside the Pharma giant Pfizer ( PFE ). The vaccine, Comirnaty, was the most widely used vaccine of the COVID era, and netted BioNTech revenues of $21.6bn in 2021, and $18.5bn in 2022. In these two years, the company reported operating income of $16.74bn, and $12.76bn.

BioNTech launched its initial public offering ("IPO") back in October 2019, raising $150m at $15 per share in October 2019 - at the height of its bull run, the stock traded at over $375 per share, and the company was valued at close to a triple-digit billion sum. Not surprisingly, as revenues from Comirnaty tailed off in 2023, the stock price began to fall, and today it trades under $96, valuing the company at ~$23bn...

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