BioNTech’s stock sinks after disclosing expected charge of up to nearly $1 billion resulting from Pfizer’s write offs of COVID products

Shares of BioNTech SE
BNTX,
-6.38%
sank 6.1% toward a 2 1/2-year low in premarket trading Monday, after the Germany-based biotechnology company disclosed that it currently expects to record a charge of up to EUR900 million ($947 million) in the third quarter as it writes of inventory of COVID-19 vaccine Comirnaty. The disclosure comes in response to Pfizer Inc.’s
PFE,
+3.61%
announcement Friday that it was cutting 2023 revenue expectations by $9 billion due to its COVID products, which were developed with BioNTech. Pfizer’s stock slumped 2.8% ahead of Monday’s open. Pfizer’s write-offs don’t address the Pfizer-BioNTech COVID-19 vaccine adapted to the XBB.1.5 variant. On Monday, BioNTech said it was still evaluating the potential impact of the Pfizer’s announcement, but said it expects any of its write offs to reduce 2023 revenue. BioNTech expects to release third-quarter results on Nov. 6. BioNTech’s stock has dropped 31.1% year to date through Friday, while Pfizer shares have tumbled 37.3% and the S&P 500
SPX,
+1.06%
has gained 12.7%.