Covid vaccine developer BioNTech is to take a write-down of up to €900 million on its stocks of jabs following a similar provision by partner Pfizer Inc (NYSE:PFE) last week.
Pfizer had said that the write-offs relate to raw materials purchased during the pandemic, as well as Covid-19 vaccine doses adapted to non-XBB.1.5 variants.
In a statement, BioNtech said it will likely "recognise the effect of Pfizer's inventory write-offs and other charges related to Comirnaty", the two companies' jointly developed Covid vaccine, in the third quarter of 2023.
BioNTech earns half of the gross profit from Comirnaty through an agreement with Pfizer. The write-down will also affect revenues, said Germany-based BioNtech.
Pfitzer said two days ago that it was axing jobs and cutting costs after a slowdown in demand for Comirnaty and Paxlovid, its proprietary Covid-19 vaccine.
Some US$4.9 billion is being written off Paxlovid in addition to a US$900 million hit for Comirnaty, the US drug giant announced, which also said sales this year would be less than expected at between US$67-US$71 billion due largely to reduced Covid demand.