Pfizer's Move: Should You Reconsider BNTX Stock?
Pfizer's decision to offload its remaining shares in BioNTech (BNTX) has sparked speculation about the company's future. This move suggests a lack of confidence in BioNTech's COVID-19 vaccine and its stock potential.
BioNTech's Struggles
Once a profit powerhouse, BioNTech is now facing significant losses. Its shares, though not cheap, reflect a company struggling to find solid ground.
Declining Sales and Losses
- Peak Sales: BioNTech's star product, the COVID-19 vaccine Comirnaty, saw peak sales of $37.8 billion in 2022.
- Sales Decline: Sales have since plummeted, with a 19% year-over-year decline in Q3 2025.
- Net Losses:
- $719.9 million in 2024
- $33.55 million in Q3 2025
Despite a boost from Bristol-Myers Squibb (BMY) payments related to their collaboration on BNT327, an immuno-oncology treatment, BioNTech's future remains uncertain.
Analyst Predictions and Valuation
- Expected Losses:
- $4.10 per share in 2025
- $4.04 per share in 2026
- High Valuation: BioNTech's shares trade at a price-sales ratio of 6.8 times, indicating a high valuation relative to its sales.
Pipeline Drugs: Potential and Challenges
- BNT327:
- In Phase 2 trial for extensive-stage small cell lung cancer.
- Showed modest improvements in progression-free survival (PFS).
- Concerning adverse events at higher doses.
- BNT323:
- Met its primary endpoint in a Phase III trial for breast cancer.
- Faces stiff competition from Enhertu, a similar drug already on the market.
Conclusion: A Risky Investment
Pfizer's decision to sell its stake in BioNTech is a red flag. The company is losing money, and its pipeline drugs face significant hurdles. While Bristol-Myers Squibb's investment is encouraging, the data on BNT327 is not particularly strong. BNT323's success is uncertain given the competition from Enhertu. BioNTech's valuation is not particularly low, making it a risky investment.
For now, BioNTech looks like a sell. However, if the company's drug candidates show significant progress and the stock price drops considerably, it might be worth reconsidering in the future.
