BioNTech SE -ADR (NASDAQ: BNTX) has become one of the fastest growing companies in the market because of its COVID-19 vaccine.
BioNTech’s revenues grew by an astronomical 8,123.33% in the quarter ending on 31 March 2021, Stockrow estimates. Astonishingly, Stockrow recorded no revenue growth for BioNTech (BNTX) in the quarter ending on 30 September 2020. The revenue growth rate rose to 1,192.67% in the quarter ending on 31 December 2020.
Incredibly, BioNTech’s quarterly income from -$65.39 million on 31 March 2020 to $2.003.95 billion on 31 March 2021. Similarly, BioNTech’s quarterly gross profit rose from $15 million on 31 March 2020 to $2.187 billion on 31 March 2021.
How Cash is BioNTech generating?
BioNTech (NASDAQ: BNTX) is generating more cash. For instance, BioNTech’s ending cash flow rose from $498.2 million on 31 March 2020 to $1.075 billion on 31 March 2021.
Conversely, BioNTech does not generate cash from its operations. BioNTech’s quarterly operating cash flow went from -$60 million on 31 March 2020 to -$375 million on 31 March 2021.
BioNTech borrowed enormous amounts of money last year. It reported a quarterly financing cash flow of $707 million on 31 September 2020, for example. In contrast the quarterly financing cash flow fell to -$5 million on 31 March 2021.
Overall, BioNTech’s total debt rose from $75 million on 31 March 2020 to $299 million on 31 March 2021. Similarly, the Total Liabilities grew from $312 million on 31 March 2020 to $1.98 billion on 31 March 2021.
What is BioNTech?
BioNTech SE (NASDAQ: BNTX) is a German company dedicated to commercializing a number of immunotherapies that work with the immune system.
Those technologies include mRNA therapeutics, tailored therapeutics, Therapeutic proteins, engineered cell therapies, antibodies, targeted cancer antibodies, antibody discovery engines, Individualized Neoantigen Specific Immunotherapy (iNeST), and Small Molecule Immunomodulators.
In contrast to traditional drugs, BioNTech’s technologies reprogram the immune system to attack and destroy infections and cancer. For example, the Pfizer-BioNTech mRNA vaccine teaches T-cells how to recognize and attack the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The SARS-CoV-2 is popularly known as COVID-19.
One of BioNTech’s most important technologies is messenger ribonucleic acid (mRNA). The mRNA vaccines are faster and easier to make than traditional vaccines which they build from dead viruses.
BioNTech and its America partner Pfizer (NYSE: PE) are participating in the US government’s Project Lightspeed. BioNTech developed the vaccine and Pfizer is manufacturing it.
Can BioNTech Make Money from the Flu?
Another potentially lucrative BioNTech product is mRNA influenza vaccines. BioNTech claims it could rapidly create vaccines against new influenza strains and manufacture them within three months.
Pfizer and BioNTech have a partnership to develop manufacture flu vaccines. Demand for an influenza vaccine could be high because of the damage the disease causes.
Between 2010 and 2020 there were 12,000 to 61,000 influenza deaths in the United States, the Centers for Disease Control and Prevention (CDC) estimates. Similarly, there were nine million to 45 million cases of the flu resulting in 140,000-810,000 hospitalizations in the same period.
Other potential uses for mRNA include cancer treatments including BioNTech’s FixVac. FixVac will create Cancer immunotherapies targeting shared antigens that can treat specific cancer types. Currently, BioNTech is targeting metastatic melanoma with FixVac.
What Value Does BioNTech Have?
BioNTech’s bet on mRNA is paying off. Its quarterly revenues grew from $30 million on 31 March 2020 to $2.467 billion on 31 March 2021.
Similarly, BioNTech’s Total Assets grew from $803 million on 31 March 2020 to $4.942 billion on 31 March 2021. In addition, the cash and short-term investments grew from $496 million on 31 March 2020 to $1.048 billion on 31 March 2021.
One person who believes in BioNTech (BNTX) is Mr. Market. Market paid $50.88 for BNTX on 26 May 2020 and $202.37 for the stock on 26 May 2021.
The World’s Hottest Product
Demand for the Pfizer-BioNTech vaccine is exploding because of coronavirus. For instance, Pfizer (PE) and BioNTech vow to provide one billion doses of their vaccine to low and moderate-income countries by the end of 2021, The Hill reports.
Similarly, the European Commission has signed a contract for 1.8 billion doses of the Pfizer-BioNTech vaccine, DW reports. The European Commission is the European Union’s (EU) executive body.
Pfizer and BioNTech share ownership of the vaccine. Therefore, BioNTech owns of half the world’s hottest product the most effective COVID-19 vaccine. A study by Israel’s Health Ministry that shows the Pfizer-BioNTech vaccine is 96.7% at preventing COVID-19 deaths, 95.3% effective in preventing infection, and 95.7% effective in protecting against serious coronavirus cases.
I consider BioNTech an excellent growth stock because it has a history of creating effective and popular products. However, I think the $202.37 Mr. Market paid for BNTX on 26 May 2021 was too high. For instance, BioNTech pays no dividend.
In contrast, Pfizer (PFE) shares sold for $38.92 on 26 May 2021. In addition, Pfizer will pay a 39₵ quarterly dividend on 4 June 2021. Thus, Pfizer offers access to BioNTech’s most lucrative products, vaccines, at a lower price and it pays a dividend.
In conclusion, BioNTech makes money from vaccines but I consider Pfizer a better stock.