: BioNTech’s stock rallies after it posts surprise Q3 profit and revenue that tops estimates

United States

BioNTech SE’s stock rose 2.5% early Monday after the company posted a surprise profit for the third quarter and revenue that beat estimates, even as it was hit by lower COVID-19 vaccine revenue.

The Mainz, Germany-based company BNTX, +3.56% said it had net profit of 160.6 million euros ($ 172.7 million), or 67 cents a share, down from EUR1.785 billion, or EUR6.98 a share, in the year-earlier period.

Revenue fell to EUR895.3 million from EUR3.461 billion a year ago.

The FactSet consensus was for a loss of 59 cents and revenue of EUR851.0 million.

The company said inventory writedowns by its partner Pfizer Inc. PFE, +2.49% shaved EUR507.9 million off revenue for the period.

Pfizer shocked investors in October with a late-Friday announcement that it was cutting $ 9 billion from its full-year sales outlook due to a slump in demand for its COVID treatment Paxlovid, and its COVID vaccine Cormirnaty, which it co-developed with BioNTech. Pfizer said it would take a $ 5.5 billion charge for overall COVID product inventory writedowns.

BioNTech is now expecting full-year COVID revenues to total EUR4 billion, down from prior guidance of EUR5 billion. It also lowered guidance for R&D spend and sales, general and administration costs.

But like other makers of COVID products that are no longer in high demand, BioNTech was keen to emphasize other pipeline products, including in oncology and other infectious diseases.

The company highlighted positive clinical data updates across drug classes including antibody-drug conjugate (ADC) candidates BNT323/DB-1303, BNT325/DB-1305, CAR-T candidate BNT211, T cell therapy candidate BNT221 and mRNA cancer vaccine candidate BNT116, in the quarter.

BioNTech will hold an Innovation Series Day on Tuesday in Boston to offer analysts an update on its pipeline.

The stock has fallen 36% in the year to date, while the S&P 500 SPX, +0.94% has gained 13.5%.