BioNTech Shuts Germany, Singapore Operations, Plans $1B Share Buyback in 2024
BioNTech Announces Major Restructuring and Share Buyback
Site Closures and Job Impact
FRANKFURT, May 5 (Reuters) - Germany's BioNTech said on Tuesday it would close sites affecting up to 1,860 jobs and buy back up to $1 billion worth of its shares, following the announcement of two co-founders quitting the COVID-19 vaccine maker.
Mainz-based BioNTech said in a statement on first-quarter results that it would close sites in Idar-Oberstein, Marburg and Tuebingen, Germany, as well as in Singapore, as the biotech firm transfers production of its COVID-19 vaccine to partner Pfizer this year.
Leadership Changes
BioNTech said in March its two co-founders and leading executives will leave by the end of the year to start a new venture. CEO Ugur Sahin and Chief Medical Officer Oezlem Tuereci, the married couple behind the Western world's most commonly used immunisation shot during the pandemic, said at the time they would focus again on pioneering new treatments.
Timeline for Site Exits
The exit from Idar-Oberstein, Marburg, and Tuebingen is planned by the end of 2027, while operations in Singapore are expected to end during the first quarter of 2027, the statement said.
Divestment Options
For each site, BioNTech is exploring divestment options, including a partial or total sale, it added.
Financial Strategy and Performance
Cost Cutting Measures
BioNTech also said it would ramp up cost cutting over time, potentially reaching about 500 million euros in annual savings in 2029.
Share Buyback Program
The company, which had 16.7 billion euros in cash and financial securities as of March 31, will also repurchase up to $1 billion of its shares over the next 12 months.
Quarterly Financial Results
It reported a first-quarter net loss of 532 million euros, compared with a loss of 416 million in the year-earlier period.
(Reporting by Patricia Weiss and Ludwig Burger, editing by Linda Pasquini)
