Cash-rich BioNTech plans to spend about $1 billion more on research this
year
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[March 27, 2023]
FRANKFURT (Reuters) - BioNTech plans to spend up to about 1
billion euros ($1.1 billion) more on research and development and buy
back up to $500 million more of its shares this year, drawing on more
than 21 billion euros from the now waning commercial success of its
COVID-19 vaccine. In a statement on Monday, Germany's BioNTech, Pfizer's
partner on the Comirnaty vaccine, said it plans to spend 2.4 to 2.6
billion euros on research and development (R&D) in 2023, up from 1.54
billion euros last year.
"We plan to continue investing in our transformation with a focus on
building commercial capabilities in oncology and working towards
registrational trials," said Chief Executive and Co-Founder Ugur Sahin.
The company said it expects to authorise new share buybacks worth up to
$500 million this year, having already spent $1.3 billion on own shares
through March 17.
Thanks to its COVID-vaccine market lead in the Western world, BioNTech
ended the year 2022 with a cash balance of 13.9 billion euros plus
receivables, or cash it stands to receive, of 7.14 billion euros.
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The logo of BioNTech is seen in Marburg,
Germany, February 2, 2023. REUTERS/Fabian Bimmer
Commercial revenues from the shot
slipped 9% to 17.2 billion euros last year and are expected to drop
further to about 5 billion euros in 2023, the company added.
Driving the increase in development costs, BioNTech has started
testing four new infectious-disease vaccines on humans over the past
few months, targeting influenza and COVID-19 in a combination shot
and also herpes, malaria as well as shingles.
It will also continue with its traditional focus on oncology,
seeking to use its mRNA technology to help the human immune system
to attack tumours.
It said "multiple trials" that could potentially support a request
for regulatory approval would be initiated in 2023 and 2024.
($1 = 0.9289 euros)
(Reporting by Ludwig Burger and Patricia Weiss, Editing by Rachel
More and Jane Merriman)
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