01:09 PM EDT, 03/20/2024 (MT Newswires) -- US-listed shares of BioNTech (BNTX) declined on Wednesday after the German drugmaker reported fourth-quarter results that missed analyst expectations and guided for a revenue decline in 2024.

Revenue slumped to 1.48 billion euros ($1.61 billion) for the three months ended Dec. 31 from 4.28 billion euros the year earlier and missed the average analyst estimate of 1.85 billion euros. Earning per share tumbled to 1.90 euros from 9.26 euros, trailing the market's 2.45 euros view. Nasdaq-listed American depositary receipts of BioNTech slid 5.5% in afternoon trade.

Inventory write-downs related to BioNTech's collaboration partner, Pfizer (PFE), reduced revenue by 291.3 million euros during the quarter. The write-downs "negatively impacted our top line figure compared to our initial expectations," Chief Financial Officer Jens Holstein told analysts on a conference call, according to a Capital IQ transcript.

The agreement nevertheless has important strategic advantages, including saving BioNTech sales and marketing costs given it needs very little commercial infrastructure in the COVID-19 vaccine franchise, he said. The COVID-19 vaccine is expected to remain "an important cash contributor in 2024," Holstein said in a statement.

For 2024, BioNTech is guiding for revenue in the range of 2.5 billion euros to 3.1 billion euros, marking a decline from the 3.82 billion euros it reported for 2023. Analysts polled by Capital IQ were modeling for revenue of 3.07 billion euros in the ongoing year.

The company expects to spend between 2.4 billion euros and 2.6 billion euros on research and development in 2024, up from the 1.78 billion euros it spent in the 12 months ended Dec. 31. BioNTech plans to focus investments on R&D and scaling the business for commercial readiness in oncology.

"Over the course of 2024, we aim to advance and prioritize additional product candidates to late-stage development," Chief Executive Ugur Sahin said on the call. BioNTech's leadership in the COVID-19 vaccine market is also expected to lay the foundation for establishing a sustainable respiratory vaccines business, he said in a statement.

The company expects between 700 million euros and 800 million euros in selling, general and administrative costs and said cost discipline and strategic capital allocation "will continue to be an important driver of the company's trajectory."

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