The two companies that developed the most widely used mRNA Covid-19 vaccines, BioNTech and Moderna, have reported a significant drop in their revenues for the last quarter. According to their earnings reports, BioNTech’s sales fell 95% year-over-year, while Moderna’s revenues declined 93% annually. Both companies attributed the decline to lower demand for Covid-19 vaccines as the pandemic eases in some parts of the world.
BioNTech, which partnered with Pfizer to produce its vaccine, said it expects to generate $5.5 billion in Covid vaccine sales this year, a 70% decrease from 2022. Moderna, on the other hand, forecasted $6 billion to $8 billion in Covid jab sales for 2021, which is about two-thirds lower than its $18 billion revenue from the unit last year.
Investors lose confidence in Covid vaccine stocks
The disappointing financial results have caused a sharp sell-off in the stock market for both BioNTech and Moderna. On Monday, BioNTech’s shares fell 8% and Moderna’s shares dropped 6%, reaching their lowest prices in years. BioNTech closed at $98.50, its lowest since March 2021, while Moderna ended at $101.20, its lowest since November 2020.
The stock crashes have erased a large portion of the market value that both companies gained during the pandemic. BioNTech and Moderna have lost about $340 billion in market capitalization over the last two years, with BioNTech down $85 billion and Moderna down $157 billion. The two companies were among the best-performing stocks in 2020 and 2021, as they delivered effective and innovative vaccines against Covid-19.
Analysts see challenges ahead for Covid vaccine makers
Some analysts have expressed doubts about the future prospects of BioNTech and Moderna, as they face increasing competition and uncertainty in the Covid vaccine market. Jefferies analysts led by Akash Tewari wrote in a note to clients that until BioNTech gets “the COVID guidance monkey off its back, this will remain purgatory for most investors.” They added that BioNTech’s valuation is “highly dependent” on its ability to diversify its pipeline beyond Covid-19.
Moderna also faces challenges in expanding its portfolio of products and maintaining its growth momentum. The company recently announced positive results from its flu vaccine trial, but it also faced a setback when the FDA delayed its decision on approving its Covid booster shot for adults. Moderna’s CEO Stephane Bancel said that the company is working on developing vaccines for other diseases, such as HIV and cancer, but he acknowledged that these are “very hard scientific problems” that will take time to solve.
