BioNTech SE (BNTX) Allegedly Misled Investors Regarding its Business Prospects
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired BioNTech SE (NASDAQ: BNTX) between March 30, 2022 and October 13, 2023. BioNTech is a biotechnology company that develops and commercializes immunotherapies for cancer and other infectious diseases. The Company has developed and continues to develop, among other products and product candidates, Comirnaty, a COVID-19 vaccine, in collaboration with Pfizer Inc.
According to the complaint, during the class period, defendants failed to disclose that: (i) BioNTech overstated demand for Comirnaty and/or its commercial prospects; (ii) the Company and/or Pfizer had accumulated excess inventory of raw materials for Comirnaty, as well as COVID-19 vaccine doses adapted to other, non-XBB.1.5 variants that were produced at risk; and (iii) accordingly, BioNTech was at an increased risk of recording significant inventory write-offs and other charges related to Comirnaty.
On Monday, October 16, 2023, BioNTech issued a press release announcing that, as a result of Pfizer’s inventory write-offs and other charges related to Comirnaty, BioNTech would likely recognize up to €0.9 billion in inventory write-offs and other charges related to Comirnaty in the third quarter of 2023, which represents BioNTech’s half under the gross profit-sharing agreement with Pfizer, and that “[a]ny such write-offs will reduce the revenues the Company would report for 2023.” According to BioNTech, Pfizer informed that Company “that the majority of the write-offs relate to raw materials, mainly formulation-related lipids, purchased during the pandemic, as well as COVID-19 vaccine doses adapted to other, non-XBB.1.5 variants produced at risk.” On this news, BioNTech’s ADS price fell $6.61 per ADS, or 6.38%, to close at $96.97 per ADS on October 16, 2023, harming investors.
What Now: Similarly situated shareholders may be eligible to participate in the class action against BioNTech SE. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by March 12, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.