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BioNTech Shares Rallied 10.8% Higher on €2.7 Billion Profit From COVID-19 Vaccines

Simon Mugo trader
Updated 9 Aug 2021

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Shares of BioNTech SE – ADR (LON: BNTX) rallied 10.8% higher after the biotech startup said that it and its partner Pfizer had supplied 1 billion doses of their COVID-19 vaccine as of July 21, 2021, generating €5.31 billion in revenues compared to €41.7 million generated last year.

The two companies also confirmed that they had secured orders for 2.2 billion vaccine doses to be delivered this year and over one billion doses to be delivered from next year.

BioNTech generated €4.19 billion in gross profits, with its net profit, at €2.7 billion compared to the €88.3 million loss recorded in Q2 2020.

The biotech company said it expects to generate over €15.5 billion in revenues from the delivery of the remaining vaccine orders compared to its initial estimates of €12.4 billion.

Investors cheered today’s earnings results, which were largely expected, given that its share price did not move as much as it would have if the news were a total surprise to most investors.

BioNTech’s partner, Pfizer, is set to generate US$33.5 billion in revenues from its shares of the vaccine sales revenues.

The company also said that it believes that a third dose of the vaccine might be necessary after it became clear that fully vaccinated people were not immune to some of the virulent strains of the coronavirus, such as the delta variant.

BioNTech also expressed its desire to start testing a vaccine targeted at the highly infectious delta variant as part of a “comprehensive strategy to combat the variants, if the need arises in the future.

BioNTech share price.

IG chart of BioNTech share price 09-08-2021

BioNTech shares edged 10.79% higher to trade at $431.24, rising from Friday’s closing price of $389.21.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading