BioNTech stock popped Wednesday after Pfizer's Covid vaccine partner reported soaring profitability and announced a $1.5 billion share buyback plan.
The share repurchase program will take place over the next two years. In addition, BioNTech hopes to offer a special cash dividend at €2 per share. Based on today's exchange rate, that's roughly $2.23.
All of this comes on the back of a strong quarterly beat and 2022 guidance that topped forecasts. For the year, BioNTech expects about $14.5 billion to $18.9 billion in Covid vaccine sales sales. The firm is also investing in other infectious diseases, autoimmune disease and regenerative medicine, Chief Executive Ugur Sahin said in a written statement.
"Our core vision remains the foundation for all our activities: harnessing the power of the immune system to improve the health and lives of billions of people worldwide," he said.
On today's stock market, BioNTech stock rose 1.4% to 174.78.
BioNTech Stock: Quadruple-Digit Growth
During the fourth quarter, adjusted BioNTech earnings skyrocketed a quadruple-digit percentage to about $13.55 per share. That handily beat analysts' call for $8.16 a share, according to FactSet. Sales also surged by quadruple digits to approximately $6.16 billion.
The financial success will allow BioNTech to spend roughly $1.6 billion to $1.7 billion on research and development this year, Chief Financial Officer Jens Holstein said in a written statement. That's a 50% increase over spending in 2021.
"In subsequent years, we intend to increase R&D investments further to continue to exploit the many prophylactic and therapeutic opportunities offered by our technology," he said.
Guidance for about $14.5 billion to $18.9 billion in full-year Covid vaccine revenue was in line with BioNTech stock analysts' projection for just shy of $17.5 billion. So far, BioNTech says it has signed orders to deliver 2.4 billion doses of its Covid vaccine.
The company notes it's working to expand its Covid vaccine franchise. On Tuesday, the Food and Drug Administration said it would allow people age 50 and older to receive a second booster shot from Pfizer/BioNTech or Moderna five months after their first.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
