BioNTech Share Favorably Valued

biontech share

Today we are talking about the Mainz-based biotech company BioNTech (BNTX). Similar to HelloFresh, this “fallen angel” is well worth a look.

COVID-19 Vaccine Brings Breakthrough

Founded in 2008, this biotech company was one of the big beneficiaries of the COVID-19 pandemic, probably the biggest in Germany. BioNTech specializes in immunotherapies and conducts research on novel vaccines that – like the COVID-19 vaccine – are based on mRNA technology.

The development of the COVID-19 vaccine, which was marketed jointly with the U.S. company Pfizer, brought a commercial breakthrough for the Mainz-based company. In 2020, sales more than quadrupled to €482.3 million. Net income was €15.2 million, compared with a loss of €179.2 million the year before.

The big push then came last year. Sales increased 39-fold to €19.0 billion. Earnings per share exploded more than 700-fold to €42.18. In 2020, earnings per share had amounted to just 6 cents.

Good Start To The New Financial Year

At the beginning of this week, BioNTech presented its results for the first quarter of 2022 and was once again able to convince. Sales more than tripled from €2.05 billion to €6.37 billion. The same applies to net profit, which grew from €1.13 billion to €3.70 billion compared to the same quarter last year.

In presenting its figures, the company reiterated its sales guidance for its COVID-19 vaccine. For the current year, management expects revenues of between €13 and €17 billion. Together with its U.S. partner Pfizer, BioNTech is also evaluating potential successor versions of its current COVID-19 vaccine.

BioNTech Research In The Cancer Field

The high revenues generated by the COVID-19 vaccine have put the company in an extremely comfortable financial position, giving it the opportunity to once again significantly increase the pace of research in other areas. For example, BioNTech currently has over a dozen cancer therapies in clinical trials.

The Mainz-based company recently presented initial data on a new treatment at the US cancer conference AACR. BioNTech combines a CAR-T cell therapy with an mRNA vaccine. The results so far are promising: tumors shrank or disappeared in six of the 16 patients.

Favorable Valuation Opens Up Opportunities

After soaring to new heights, the BioNTech share has lost around two-thirds of its value compared with its high in August last year. In turn, however, the key figures have improved significantly. After the COVID-19 boost, analysts do expect a drop in profits this year. Nevertheless, the price-to-earnings ratio (P/E) is just 4. A ridiculous valuation!

Against this background, the BioNTech share has plenty of room to aim for significantly higher prices again in the medium term. After all, the recent weakness did not reach the annual lows of early March. A first sign of a possible bottom formation.

For risk-tolerant investors who do not shy away from high price fluctuations, it could be worthwhile to lie in wait and put the BioNTech share on the watch list.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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