BioNTech SE (BNTX), a German biotech on Monday announced that it is trimming drug development costs amid plummeting Covid vaccine sales.
BioNTech is currently trading at $96.5, down $9.95 or 9.34 percent. The stock opened its trading at $101.01 after closing Friday's trading at $106.48. The stock has traded between $95.51 and $188.99 in the past 52-week period.
The company has revealed plans to cut its research and development expenses. The company expects to spend around $2.2 billion to $2.4 billion on R&D, representing a $44 million decrease from its previous forecast just three months ago. In addition to R&D cost reductions, BioNTech also anticipates lower expenditures on administrative and capital investments for the current year.
The cost-cutting measures come in the wake of disappointing second-quarter sales for its Covid vaccines. BioNTech reported generating approximately $185 million in sales during second quarter. The slump in sales resulted in a staggering decline of more than 94% in revenue.
For the first time since September 2020, BioNTech disclosed a per-share loss. On an adjusted basis, the company reported a loss of $1.06 per share during the quarter, marking a stark reversal from the year-ago period when the company posted a gain of $7.01 per share.
Despite the setback in Covid vaccine sales, BioNTech emphasized that it remains steadfast in its commitment to advancing cancer treatment research. The company is currently focused on multiple cancer treatment studies, with a notable project being a final-phase study of a lung cancer treatment in collaboration with privately held OncoC4.
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