BioNTech (NASDAQ:BNTX) shares gained in the pre-market session today after the biotechnology company delivered an EPS of €0.67 on revenue of €895.3 million for the third quarter.
During the quarter, the nearly 74% year-over-year slump in the company’s revenue was primarily due to inventory write-downs by BNTX’s collaboration partner Pfizer (NYSE:PFE). Just as in the case of Pfizer, lower Comirnaty sales continue to impact BioNTech’s performance.
Further, increased research and development, and general and administrative expenses contributed to the company’s net profit plummeting to €160.6 million from €1.78 billion a year ago.
For Fiscal year 2023, the company now anticipates COVID-19 revenue of €4 billion, compared to the prior outlook of €5 billion. It now expects capital expenditures to be in the range of €200 million to €300 million, as compared to the earlier outlook of between €500 million and €600 million for the year. Similarly, research and development expenses for the year are anticipated to be between €1,800 million and €2,000 million, versus the prior expected range of between €2,400 million and €2,600 million.
Importantly, BioNTech has €17 billion in dry powder to drive its development pipeline and is focusing on streamlining its expenditures in the current macroeconomic environment. The company is advancing its pipeline in oncology and has executed successful launches of its Omicron XBB.1.5 adapted monovalent vaccine in key global markets.
What Is the Prediction for BNTX Stock?
Overall, the Street has a Moderate Buy consensus rating on BioNTech. The average BNTX price target of $132.67 implies a significant 38.5% potential upside. That’s after a nearly 35.6% decline in BNTX shares so far this year.
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