Germany’s BioNTech, Pfizer’s partner in COVID-19 vaccines, cut its drug development budget for this year after quarterly revenue took a hit from a pandemic-related slump in demand.
Second-quarter revenue fell to 167.7 million euros ($184 million) from 3.2 billion euros a year earlier as Pfizer asset writedowns eroded benefit payments BioNTech is entitled to receive from his American partner.
Quarterly net loss was €190 million, below the €1.67 billion profit recorded a year earlier thanks to COVID-19.
“With some uncertainty on the revenue line, we are also carefully watching our spending by reviewing our cost base,” said chief financial officer Jens Holstein, adding that BioNTech’s ambition to become a multi-product oncology and disease company infections remained unchanged.
The company cut its projected research and development (R&D) budget for this year to between 2.000 and 2.200 million euros, compared to between 2.400 and 2.600 million previously forecast. Last year, spending on R&D was 1,540 million euros.
