Amongst the surge in biotech stocks this year, BioNTech has impressed many with its vaccine production and projections of future growth
BioNTech SE (NASDAQ: BNTX) is a German-based biotech company that has recently increased its role in the public consciousness. This is mainly due to its partnership with Pfizer in the production of one of the more popular COVID vaccines. Orders for the vaccine are rolling in with the largest such shipment totaling 1.8 billion doses for the European Union alone.
Biotech stocks have been on the rise this year due to the production of vaccines. For other biotech stocks to consider right now you can read about three biotech stocks for an age of epidemics. However, BioNTech SE has more to it than just being involved with Covid vaccine production and that is why this is the 1 biotech stock that I am buying right now.
A look at BioNTech’s financials
BioNTech brought in $482.3 million in revenue for full-year 2020. Its revenue comes from research and development contracts, as well as commercial sales. The majority of this revenue came from the last 3 months in the year, where it brought in $345 million with a profit for the quarter of $367 million.
The company has also posted an outlook for 2021 and it is on track to earn $15 billion from the Covid vaccine for the year. This vaccine will continue to increase revenue for years to come as booster doses will be needed in the future as immunity wanes, current expectations show BoiNTech making around $42 billion over the next few years.
What I like about BioNTech
BioNTech is an innovative company that is focused on many different areas of medical treatment. Its most impressive by far is its oncology department, in which it is currently expanding its pipeline. Right now it has 13 product candidates and 14 ongoing trials.
Furthermore, in the latter half of 2020, the company managed to acquire an mRNA manufacturing site with up to 300 staff and the ability to produce over 750 million product doses annually. This is one of the largest manufacturing sites in Europe and it has been instrumental in the production of COVID vaccines this year. It also provides a clear pathway for future developments in booster vaccines.
2020 also saw the acquisition of Neon Therapeutics in the U.S. which now serves as its American HQ. This will encourage further research and development for Cancer, COVID-19, and other serious diseases.
Risks to BioNTech’s share price
Currently, up 117% year-to-date, BioNTech is currently vulnerable to any factors that might make its vaccine less effective; or if there are any factors that could cause side-effects leading to a general disruption of orders. One look at the current AstraZeneca vaccine issues and it is scary to see how quickly the population can turn against a product.
In its financials, this company only came out with a $15 million profit for the year as a whole. Looking back 2019 saw a loss of $179 million, whilst this could now signify a change in profitability for BioNTech, it could be something to keep an eye on for the future if vaccine demand does wane.
BioNTech’s growth potential
There are not many risks to the share price of this German biotech company. With its Covid vaccine being the preferred choice for Europe, with accelerated vaccine developments for the Indian strain and its expansion in the U.S. with new headquarters, BioNTech and Pfizer are likely to dominate the Covid Vaccine market for years to come.
With this in mind, it has made a name for itself and will likely see an uptake in research contracts, particularly in therapies for cancer, as well as an increase in orders for its Covid vaccine in the U.S.
Its stock price is currently up 117% in 2021 alone and this is likely to keep growing, particularly as its highly anticipated 1st quarter results for 2021 are set to be released soon.
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