What happened
Shares of top coronavirus stock BioNTech (BNTX -0.27%) nicely bucked the general downward trend of the market on Monday. The Germany-based biotech's stock closed more than 5% higher on the day, against the 0.6% rise of the S&P 500 index.
A continued rise in coronavirus cases kept investors interested, but a stronger catalyst was the launch of a stock repurchase program.
So what
That program was announced at the end of March; specifically, BioNTech will buy back up to $1.5 billion worth of its U.S.-listed shares over the next two years. Monday was the start of the initiative.
Image source: Getty Images.
In the original press release heralding the move, BioNTech said it would use the repurchased shares to take care of share-based payment obligations it has committed to.
The biotech quoted its chief financial officer, Jens Holstein, as saying: "We would like our shareholders to participate in our strong 2021 performance through a repurchase program of BioNTech shares. This is in line with our capital allocation strategy and our aim to continue to drive shareholder value."
As is typical with share buybacks, BioNTech's current initiative will see the company make its purchases from time to time, and in accordance with market conditions.
Now what
Meanwhile, the number of coronavirus cases is on the rise in many American cities, not to mention other municipalities and regions around the globe. While this doesn't necessarily mean that we're entering a new and frightening phase (the total number of cases is still low relative to the worst months of the pandemic, and fatalities are declining), it is a source of concern.
Should the situation worsen, Comirnaty, the vaccine developed by BioNTech in partnership with Pfizer, will again be a go-to solution for keeping the coronavirus at bay.
