mRNA And Oncology Pipeline Will Boost Markets But Face Delays

Key Takeaways

• Expanding oncology pipeline, innovative mRNA technologies, and global partnerships position BioNTech for long-term growth and improved profitability through revenue diversification.
  
• Increased investment in R&D and manufacturing capacity enables broader market penetration and reduces dependence on COVID-19 vaccine sales.
  
• Heavy reliance on COVID-19 vaccines, costly oncology pivot, regulatory risks, and pricing pressures threaten sustained revenues, profitability, and successful expansion beyond pandemic-era products.

Catalysts

A biotechnology company, develops and commercializes immunotherapies to treat cancer and infectious diseases in Germany.

• Robust pipeline expansion in oncology-with multiple late-stage (Phase II/III) clinical trials for BNT327 and mRNA cancer immunotherapies across high-prevalence cancers (lung and breast)-positions BioNTech to launch multiple new products, driving significant top-line revenue growth and enhancing earnings visibility over the next several years.
  
• Strategic partnerships (notably with BMS, Genentech, and Regeneron) provide substantial non-dilutive cash infusions, shared development costs, and accelerated global development of key assets, expected to support stable R&D spend while improving profitability and EPS as milestone revenues materialize.
  
• Deep investment and advances in mRNA platform technologies, supported by the planned CureVac acquisition and expanding R&D infrastructure, enhance BioNTech's ability to penetrate the rapidly growing market for personalized medicine-targeting expanding patient populations and supporting long-term margin expansion.
  
• Aging global population and sustained increase in healthcare spending worldwide are expected to structurally boost demand for innovative therapies, directly supporting the financial outlook for BioNTech's new oncology and infectious disease products as they progress to commercialization-positively impacting long-term revenue and gross margins.
  
• Building commercial capabilities and manufacturing capacity for new product launches enables transition to a global multiproduct biopharma model, providing future revenue diversification and reducing reliance on COVID-19 vaccine sales-which supports both revenue stability and net margin improvement as new assets reach the market.

BioNTech Future Earnings and Revenue Growth

Assumptions

• Analysts are assuming BioNTech's revenue will decrease by 1.1% annually over the next 3 years.
• Analysts are not forecasting that BioNTech will become profitable in next 3 years. To represent the Analyst Price Target as a Future PE Valuation we will estimate BioNTech's profit margin will increase from -12.0% to the average US Biotechs industry of 13.8% in 3 years.
• If BioNTech's profit margin were to converge on the industry average, you could expect earnings to reach €384.0 million (and earnings per share of €1.55) by about August 2028, up from €-344.8 million today.
• In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 92.0x on those 2028 earnings, up from -66.9x today. This future PE is greater than the current PE for the US Biotechs industry at 16.7x.
• Analysts expect the number of shares outstanding to grow by 1.11% per year for the next 3 years.
• To value all of this in today's terms, we will use a discount rate of 6.45%, as per the Simply Wall St company report.

BioNTech Future Earnings Per Share Growth

Risks

• Overreliance on COVID-19 vaccine revenues persists, and management expects lower COVID-19 vaccination rates in core markets like the U.S. going forward; if vaccine demand continues to decline, this could lead to ongoing declines in revenue and increased inventory write-downs, pressuring both top-line performance and profitability.
  
• BioNTech remains in a heavy investment phase, with R&D expenses (€2.6–2.8 billion) and net losses (€387 million in Q2 2025) significantly outpacing revenues outside of COVID-19; delayed or unsuccessful late-stage trial outcomes or commercialization of oncology assets could extend this negative earnings trajectory and compress margins further.
  
• BioNTech's strategic pivot toward oncology exposes the company to substantial execution risks, including competition from other immunotherapy and mRNA platforms (e.g., Moderna, Pfizer, traditional pharma), potential delays in regulatory approvals, and failure to meet clinical endpoints, all of which could undermine future revenue streams and reduce long-term net margins.
  
• Increasing regulatory scrutiny and evolving FDA requirements (including the need for Western population dose data and challenges surrounding the acceptance of Chinese clinical data) could lead to longer development timelines, higher costs, delayed approvals, or pipeline setbacks, impacting revenue realization and increasing development expenses.
  
• Healthcare pricing reforms, rising cost containment pressures in developed markets, and growing public vaccine hesitancy could challenge BioNTech's ability to secure attractive reimbursement and widespread adoption for new products, limiting future revenue growth and negatively affecting profitability if advanced therapies face restricted uptake or lower pricing.

Valuation

• The analysts have a consensus price target of $136.649 for BioNTech based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $171.08, and the most bearish reporting a price target of just $112.05.
  
• In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be €2.8 billion, earnings will come to €384.0 million, and it would be trading on a PE ratio of 92.0x, assuming you use a discount rate of 6.4%.
  
• Given the current share price of $111.07, the analyst price target of $136.65 is 18.7% higher. Despite analysts expecting the underlying buisness to decline, they seem to believe it's more valuable than what the market thinks.
  
• We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.