Shares of BioNTech SE (BNTX, -4.89%) witnessed a significant decline of 6.1% in premarket trading on Monday, reaching a 2 1/2-year low. The Germany-based biotechnology company made a striking announcement that it anticipates recording a charge of up to EUR900 million ($947 million) in the third quarter. This write-off is attributed to its inventory of the COVID-19 vaccine, Comirnaty.
The disclosure follows Pfizer Inc.‘s (PFE, -2.46%) announcement on Friday, where the pharmaceutical giant lowered its 2023 revenue expectations by a staggering $9 billion. This adjustment can be attributed to the performance of their COVID products, which were developed in collaboration with BioNTech. Consequently, Pfizer’s stock saw a decline of 2.8% prior to Monday’s market open.
It’s essential to note that Pfizer’s write-offs do not encompass the Pfizer-BioNTech COVID-19 vaccine adapted to the XBB.1.5 variant. BioNTech is currently assessing the potential impact of Pfizer’s announcement, noting that any write-offs would undoubtedly lead to a decrease in revenue for 2023. Interested parties can expect BioNTech’s third-quarter results to be unveiled on November 6.
Throughout this year, BioNTech’s stock has experienced a significant drop of 31.1% as of last Friday. Similarly, Pfizer shares have also encountered a decline of 37.3%, while the S&P 500 (SPX, -0.50%) has achieved a growth of 12.7%.