BioNTech’s Vaccine Will Boost The German Economy

According to Bloomberg, BioNTech's vaccine will boost the German economy. BioNTech SE (NASDAQ:BNTX) raised its forecast for Covid-19 vaccine sales to 15.9 billion Euros ($18.6 billion).

Revenue of BioNTech, which has partnered with Pfizer Inc. (NYSE:PFE), could contribute about 0.5% point to growth in German gross domestic product, according to Sebastian Dullien, a professor of International Economics at HTW Berlin. While some of its revenue might include inputs from abroad, the company’s profit-sharing agreement with Pfizer contribute to German GDP. After BioNTech released its quarterly report, Sebastian Dullien said, “This is quite extraordinary for a start-up. This is one of those rare cases where a single company has a macroeconomic relevance.”

The Bundesbank forecasts an expansion of 3.7% for the German economy this year.

BioNTech’s largest plant in Marburg, Germany, has a manufacturing capacity of 1 billion doses per year. Some of the vaccine production is also done at a Pfizer factory in Belgium and by other manufacturing partners elsewhere in Europe. According to Dullien, this is unlikely to significantly diminish the impact on German GDP as production costs are low compared to revenues. The Covid vaccine is on track to be one of the best-selling drugs of all time. BioNTech and Pfizer have signed contracts to deliver 2.2 billion doses of the two-shot vaccine this year and more than 1 billion doses in 2022 and beyond. Last month, Pfizer said it may generate $33.5 billion in sales in 2021, which will be split between the partners, such as BioNTech.