BioNTech SE (BNTX) is expanding its global footprint by entering the Asian market. The company will set up its regional headquarters for Southeast Asia in Singapore.
With the assistance of the Singapore Economic Development Board, BioNTech also plans to set up an mRNA manufacturing plant in Singapore. This facility will supply the company’s mRNA-based products regionally and globally. From the outset, the plant will be built with the ability to address future pandemics through its rapid response production processes.
Furthermore, the new facility will be able to produce a diverse range of mRNA vaccines and therapeutics to address infectious diseases and cancer. It will have an annual capacity of several hundred million doses of mRNA-based vaccines.
The company plans to begin construction of the facility and simultaneously open the Singapore office in 2021. It expects that the manufacturing plant will begin operations by the beginning of 2023.
BioNTech CEO and Co-founder Ugur Sahin, M.D., said, “Having multiple nodes in our production network is an important strategic step in building out our global footprint and capabilities. With this planned mRNA production facility, we will increase our overall network capacity and expand our ability to manufacture and deliver our mRNA vaccines and therapies to people around the world.” (See BioNTech stock analysis on TipRanks)
On April 15, Leerink Partners analyst Daina Graybosch reiterated a Hold rating on the stock but increased the price target to $118 (35.8% potential downside) from $110.
Graybosch believes demand for mRNA and peptide sub-unit vaccines will rise, and a majority of the demand will be met by BioNTech / Pfizer. She predicts that together, the two companies will be the “standout leader in COVID-19 vaccination globally, with demand increasing for the 2.5 billion doses they are targeting to manufacture in 2021.”
Consensus on the Street is that BioNTech is a Hold based on 1 Buy and 4 Holds. The average analyst price target of $126 implies 31.4% downside potential. That’s after the stock has seen a 272.5% surge over the past year.
Fastly Reports Disappointing 1Q Results, Light Outlook, CFO Exit; Shares Fall 17.5%
Roku Reports Profit In 1Q As Results Beat Estimates; Shares Pop 9%
Verizon To Sell Media Business To Apollo Management For $5B But Will Retain 10% Stake