(Bloomberg) -- BioNTech SE reported a surprise profit in the third quarter, helped by solid sales of its variant-adapted Covid-19 vaccines.
Mainz, Germany-based BioNTech posted earnings of €0.81 ($0.88) per diluted share in the period, according to a statement Monday. Analysts surveyed by Bloomberg expected a loss of €1.84.
Sales came in almost three times higher than anticipated at €1.2 billion, although the company said it still expects to be at the low end of its full-year revenue range of between €2.5 billion to €3.1 billion.
The US depositary receipts rose as much as 2.2% in New York. BioNTech had gained 5.63% this year through Friday’s close.
The better-than-expected rise in revenue was largely a result of BioNTech receiving early regulatory approvals in Europe and the UK for its variant-adapted Covid-19 shots, which it makes with Pfizer Inc. That boosted sales compared with the same time last year.
BioNTech gained prominence during the pandemic and is still dependent on Covid-19 jabs. But it’s been shifting focus to becoming a global multiproduct immunotherapy company, with a goal of delivering its first cancer drug in 2026, the company previously said.
The company has initiated two mid-stage dose optimization studies, including for its widely-watched experimental medicine in small-cell lung cancer and triple-negative breast cancer. A mid-stage trial of an mRNA-based individualized cancer vaccine for use in patients with high-risk muscle-invasive urothelial cancer is also on track, BioNTech said.
The company plans to fund these late-stage projects with cash from its Covid-19 business, for which BioNTech anticipates a “sustainable market for the foreseeable future.” Vaccination volume could be slightly higher this year, due to the earlier approval as well as the recommendation for a second dose for individuals aged 65 and older, Chief Strategy Officer Ryan Richardson said on a call with analysts.
The guidance for reaching the bottom end of its 2024 revenue range suggests lower profitability for the jabs, according to Bloomberg Intelligence. On the call, BioNTech executives cited weaker demand and pricing in low- and middle-income-countries.
The vaccine maker has suffered a setback for a two-in-one shot against Covid and the flu that it’s developing with Pfizer. BioNTech said it plans to provide an update next year and signaled optimism that the problems in the initial trial can be addressed.
(Updates with today’s trading and comment from company’s call.)
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