BioNTech Share Price Forecast August 2021 – Time to Buy BNTX?

Shares of next-generation immunotherapy company, BioNTech (NASDAQ: BNTX) increased by 11.8% on Wednesday (11:42 a.m. EDT). The New York Times reported that the Pfizer-BioNTech COVID-19 vaccine will likely be approved by the U.S. Food and Drug Administration by early September, which is the main reason behind the impressive performance of the shares.

BioNTech – Technical Analysis

According to the financial statement released by BioNTech, the company’s market cap is $84.97 billion with total assets worth $4.942 billion. The income for 2020 was $49.84 million which is a major increase from 2019’s revenue of 121.54 million. The debt to asset ratio is at 40.8%.

Moving averages such as Exponential Moving Average (100)(209.61), Simple Moving Average (100)(195.39), Exponential Moving Average (200)(165.67) and Simple Moving Average (200)(149.68) are pointing towards buying. This is shared by oscillators such as Momentum (10)(154.83) and MACD Level (12, 26)(37.77). BNTX shares closed at $414.44 with an uptrend of 17.80%.

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Recent Developments

BioNTech’s recent gain can be attributed to a few factors, Firstly, its partner Pfizer increased its full-year sales guidance from $26 billion to $33.5 billion for the COVID-19 vaccine. Both the companies provided positive updates from the early testing phases of the third booster vaccine. The company stands to receive half of Pfizer’s COVID-19 vaccine sales of $7.5 billion. Also, the acquisition of the additional 200 million doses that the U.S. government announced last week was not included in Pfizer’s revised guidance.

Investors are also encouraged by the results produced by Pfizer-BioNTech’s third booster dose. The third dose is expected to provide resistance against the delta variant by more than 5-fold in younger individuals and more than 11-fold in older adults. As the FDA is under pressure to make a quick approval, the timing of the FDA’s approval decision isn’t surprising. Full FDA approval won’t affect sales of BioNTech, as the government has already purchased more than enough vaccines for the near future.

Besides the vaccines, the company has 14 anti-cancer candidates in 15 clinical trials, ranging from antibodies, cell therapies, immunomodulators, and engineered cytokines to mRNA cancer vaccines. The company has three mRNA vaccines entering phase 2 clinical trials, which target head and neck cancer along with melanoma. The company will also release phase 1 data updated for two of its immunomodulators targeting solid tumours by the second half of 2021. This along with the company’s aim of producing at least 3 billion doses of vaccines this year and another 3 billion next year make the prospects brighter for BioNTech.

Should You Buy BNTX Shares?

Investors interested in BNTX should consider the following. The company’s revenue increased to €2.048 billion from €27.7 million in Q1 2020. Compared to a net loss of €53.4 billion in last year’s quarter, the company posted a profit of €1.128 billion this quarter. Revenues from the vaccines are estimated to climb as high as €12.4 billion by the end of 2021, based on current supply contracts, which is impressive for a company with a $48 billion market cap.

Many investors are scared that the company’s sales will start to decline once the entire world achieves herd immunity against the virus. Luckily. The company’s cancer therapeutics can pick up where its vaccines left off. Any immunotherapy from the company that is approved by regulators can reach a valuation of $20 billion. Additionally, BioNTech has made plans to reinvest €800 million into R&D, which will be more than enough to keep its momentum going. Due to a budding pipeline and great financials, investors can consider adding these shares to their portfolios.

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