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COVID Vaccine Stocks: How Strong Is BioNTech's Financial Position?

By Keith Speights - Jan 25, 2021 at 9:00AM

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The German biotech appears to be in pretty good shape.

BioNTech (BNTX 1.32%) has now hit the big time. Its first approved product, COVID-19 vaccine BNT162b2, is on its way to quickly becoming a mega-blockbuster success for the biotech. But how strong is BioNTech's financial position right now?

In this Motley Fool Live video recorded on Jan. 13, 2021, Healthcare and Cannabis Bureau Chief Corinne Jurney Cardina and writer Keith Speights looked at the company's cash position and income statement.

Corinne Cardina: What do you think about their [BioNTech's] financials? Do they have enough cash to do all of these trials? Where are they getting their money from?

Keith Speights: We're going to look at that too. Most of their money right now is just coming from collaboration deals, Pfizer and others, as we've seen. Let's take a look at their financials.

I'm going to look at their balance sheet, as we did for Moderna a few minutes ago, and drill into their cash position. Actually, let me change that to quarterly so we can see where they are more recently.

They have a little over one billion dollars in cash as of the end of September, a pretty healthy cash stockpile there, and it's grown. It's nearly doubled since the end of 2019. No surprise there. They've received money from Pfizer. They actually received some money from the European Union, from Germany, because they're based in Germany. They've received some money to help fund their programs, so their cash position has grown dramatically over the course of the last year. Let's say a billion dollars.

How are they looking from a bottom-line standpoint? Well, let's go over to the income statement and take a look. I'm going to change that to quarterly as well. Unfortunately, their bottom line isn't at the bottom line [laughs] in Yahoo's display here.

They lost around $210 million in their last quarter. Over the last 12 months, they've lost a little over 400 million. They're in a great position financially, a billion-dollar cash stockpile. They lost 400 million over the last year, they could go quite a while, and they're about to make a lot more money this year from their COVID vaccine. I think they're in a healthy cash position, but their other candidates are much farther out before they can potentially get to that point of winning approval than Moderna's pipeline is.

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