BioNTech Shares Forecast August 2021 – Time to Buy BNTX?
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Shares of German biotechnology company BioNTech (NASDAQ: BNTX) are in the green today after it closed at $358.48 as of August 27th (19:59 UTC-4). The shares have increased by 962% since last year’s beginning, but still has a lot of gains to offer to investors.
BioNTech – Technical Analysis
According to BioNTech’s financial statement, the market cap of the company is at $86.937 billion with total assets worth $10.85 billion. Revenue for 2020 was at $549.84 million with a profit margin of 3.15% compared to $121.54 million in the previous year.
Oscillators for BioNTech such as Relative Strength Index (14)(53.10), Stochastic %K (14, 3, 3)(33.45), Commodity Channel Index (20)(−48.81) and Average Directional Index (14)(24.57) are all neutral. However, moving averages such as Exponential Moving Average (100)(256.91), Simple Moving Average (100)(241.21), Exponential Moving Average (200)(198.30) and Simple Moving Average (200)(173.9) are pointing towards a buy action.
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The unanimous push by U.S. government leaders for boosters to be available by the end of September has brought an opportunity for vaccine makers such as BioNTech. The company has estimated a capacity of 3 billion doses in 2021 and up to 4 billion next year. It is also projecting about $6.6 billion from its partnership with Pfizer in 2023. BioNTech’s COVID vaccine, Comirnaty, isn’t the only source of the company’s revenue.
BioNTech has its treatment for melanoma and other solid tumours in phase 2 trials and is expected to wrap up next year. The drug, which is a result of a collaboration with Genentech is expected to provide a lot of opportunity for the company as the markets for drugs to treat melanoma and solid tumours are expected to reach $12 billion and $322 billion, respectively at the end of 4 years from the time of writing.
Besides Comirnaty, the company has 12 of its 27 programs in clinical trials. However, the drug in collaboration with Genentech is the only one of the company’s products that have gone beyond the phase 1 trial stage. Experience tells us that drugs in phase 1 don’t have a great track record of finally ending up in the market. Even if BioNTech manages to secure it, it will take years for revenues to materialise. So a lot of the company’s success depends on its non-vaccine endeavours.
Should You Buy BNTX Shares?
BioNTech has estimated that its revenue from the vaccine can reach as high as 12 billion euros by the end of the year, based solely on its current supply contracts. That’s an impressive feat for a company with a market cap of that size. However, some investors fear that its sales will decline as the entire world reaches herd immunity. This is where its cancer therapeutics should help the company. If it gets regulatory approval then the cancer therapeutics will be valued at more than $20 billion.
According to analysts, the current value of Comirnaty is nearly $33 billion. As Pfizer has already raised its projections for 2021 for Comirnaty which is a 50/50 partnership with BioNTech, the value to BioNTech would be about $40 million from Comirnaty. This is one of the reasons why it may be late to pick up BNTX shares at the current price. While the company has chances of experiencing tremendous success in developing cancer treatments, the company still has a lot to do to exceed expectations that have already been added to the share price.
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