BioNTech vaccine to boost German economy

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BioNTech vaccine to boost German economy

August 10, 2021 – 8:24 PM

Test tubes are seen in front of a Biontech logo displayed in this illustration taken on May 21, 2021. REUTERS / Dado Ruvic / Illustration / File Photo

The German economy is on track to receive an extraordinary boost from a single start-up this year after BioNTech SE raised its forecast for Covid-19 vaccine sales to € 15.9 billion (18 , $ 6 billion).

The German drug maker, which has partnered with Pfizer Inc., could see its revenues contribute around half a percentage point to growth in German gross domestic product, according to Sebastian Dullien, professor of international economics at HTW Berlin.

That’s because much of the Mainz, Germany-based company’s production is concentrated in Germany, he says. Although a portion of its income may include inputs from abroad, the company’s profit-sharing agreement with Pfizer counts towards German GDP.

“It’s pretty extraordinary for a startup,” Dullien said in a Twitter post after the company released its quarterly report. “There are rare instances where a single company has macroeconomic relevance.”

The Bundesbank predicts that the German economy will grow by 3.7% this year.

BioNTech’s largest plant in Marburg, Germany has a manufacturing capacity of 1 billion doses per year. Some production steps are also carried out at a Pfizer factory in Belgium and by other manufacturing partners elsewhere in Europe, but Dullien believes this should not significantly reduce the impact on German GDP, as production costs are low. in relation to income.

The Covid vaccine is fast becoming one of the best-selling drugs of all time. BioNTech and Pfizer have signed contracts to deliver some 2.2 billion doses of the two-shot vaccine this year and more than one billion doses in 2022 and beyond. Pfizer said last month it could generate $ 33.5 billion in sales this year, which is split among the partners, and BioNTech also derives revenue from direct sales.

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