The German cancer biotech startup that developed the U.S.’s first approved COVID-19 vaccine along with the biotech behemoth Pfizer Inc. (PFE) is firing on all cylinders.
For starters, prior to the opening bell Monday, BioNTech SE (BNTX) released results for its second quarter in fiscal year 2021, and they were nothing short of spectacular.
For the second quarter, BioNTech achieved total revenue of 5.31 billion euros or $6.23 billion, up an eye-popping 12,634% from 41.7 million euros in the same quarter a year ago.
Second-quarter earnings came in at 2.78 billion euros ($3.37 billion), compared to an earnings loss of 88.3 million euros in the second quarter of 2020. Earnings per share came in at 10.77 euros or $12.64 per share, topping estimates for 8.91 euros by 20.9%.
Looking ahead, this fundamentally superior company is expecting to bring in 15.9 billion euros ($18.63 billion) in revenue from the COVID-19 vaccine this year, up from a prior estimate of 12.4 billion euros.
In fact, the German startup’s revenue gains are projected to be so high this year they could amount to an eighth of the overall GDP growth of the entire nation of Germany — Europe’s largest economy by up to 05 percentage points this year — according to the Macroeconomic Policy Institute.
The company also noted that it reached a major milestone, as it has now supplied more than one billion doses of its COVID-19 vaccine to countries around the world. And through its partnership with Pfizer, BioNTech has agreements for another 2.2 billion doses of the vaccine this year, and over one billion in 2022 and beyond.
Both Pfizer and BioNTech now anticipate they’ll be able to produce three billion doses per year by the end of the year, and then ramp up their production capacity to four billion doses next year.
The company is also overseeing multiple clinical trials for the COVID-19 vaccine in additional regions and population groups, including children from six months to 11 years old, and in healthy pregnant women.
In addition, it said it’s begun clinical trials into the impact of a third “booster” dose to prolong immunity and protect against variants like Delta, which is spreading rapidly through the U.S.
White House Chief Medical Advisor Dr. Anthony Fauci recently said federal health officials have been working as fast as possible to authorize a third COVID-19 shot for Americans with weakened immune systems. Countries like France and Israel have already begun administering a third shot to some immunocompromised people.
BioNTech said it will also evaluate a modified COVID-19 vaccine that targets the full spike protein of the Beta variant, beginning this month.
The company is also developing a fully integrated, state-of-the-art mRNA manufacturing facility in Singapore with an estimated annual capacity of several hundred million doses. The facility should be online as early as 2023.
Of course, BioNTech is working on more than just a COVID-19 vaccine. It’s currently advanced 15 oncology product candidates in 18 ongoing clinical trials.
BioNTech is also working on a malaria vaccine for the African continent and anticipates starting a clinical trial by the end of 2022.
Choosing Only the Fundamentally Superior
Despite the exciting news, there’s no denying it’s still been a volatile week for BNTX shares. On Monday, after BioNTech reported its latest quarterly results, the stock soared 9.5%. Then on Tuesday, the stock climbed to a new highs, before slipping Wednesday on profit-taking. Even with Wednesday’s dip, the stock is up an incredible 357%.
The good news is that, for my Platinum Growth Club subscribers, they’ve been along for BNTX’s ride since mid-May.
So, they also benefitted from BNTX’s 22% pop last week after reports indicated the Food and Drug Administration (FDA) may give full approval to the Pfizer/BioNTech vaccine as soon as next month.
As I discussed in last week’s Market360 article about the FDA approval, there’s clearly significant profit potential for several biotech companies working on a COVID-19 vaccine, including Moderna, Inc. (MRNA) and Johnson & Johnson (JNJ). But as I said before, I believe BioNTech stands to be one of the biggest winners in the months ahead when you consider its fundamentals.
The company earns a “Strong Buy,” and a Total Grade of “A” from my Portfolio Grader, as well as an “A” for its Quantitative Grade, which represents institutional buying pressure under the stock.
But does this mean that you should only invest in biotech right now?
The short answer: Nope.
The reality is August is a very volatile month for the stock market (there’s a reason why I dread August every year!), so it’s more important than ever to have a diversified portfolio across a wide variety of sectors that are poised to do well during the bumpy summer months.
And I’m please to say that I have exactly that with my Platinum Growth Club Model Portfolio. I handpick all of my Model Portfolio recommendations from my different stock services – Growth Investor, Breakthrough Stocks and Accelerated Profits – so you can rest assured that you’re always invested in the crème de la crème.
As a Platinum Growth Club subscriber, in addition to this Model Portfolio and 100+ stocks across all my services, you also have complete access to every single Weekly Update, Monthly Issue, Market Alert and Trade Alert, as well as exclusive podcasts and Live Chat events. Plus, you’ll receive a Platinum Growth Club Monthly Issue at the beginning of each month.
Speaking of Monthly Issues, I released my latest Platinum Growth Club Monthly Issue on August 2. In it, I recommended seven brand-new buys that boast superior fundamentals and are well-positioned to climb higher in the months ahead. And in my Growth Investor Monthly Issue for August, published on July 30, I unveiled three defensive, high-growth stocks that I anticipate will be incredibly resilient in the upcoming weeks. These issues are available to you as soon as you sign up.
The bottom line: If you want to make sure your portfolio is “locked and loaded” with fundamentally superior stocks that will do well in the volatile month of August and the longer term, then I encourage you to sign up for Platinum Growth Club today.
Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owned the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
BioNTech SE (BNTX)