Why BioNTech Stock Advanced Today

Shares of the German coronavirus vaccine developer BioNTech (NASDAQ: BNTX) have climbed by more than 5.6% as of 12:07 p.m. ET on Thursday due to news released Wednesday evening that the U.S. government had signed a new supply agreement for 105 million doses of its Comirnaty jab. The company and its collaborator, Pfizer (NYSE: PFE), will be paid $3.2 billion when the government receives the doses it ordered, and the deal also includes the option to purchase another 195 million doses if needed.

The supply agreement also implies a price per dose that's 27% higher than what was negotiated in prior agreements.

The deal is favorable for the company because it's an indisputable sign that its only commercialized product is still very much in demand, even when doses are priced more aggressively than in 2021. While Pfizer predicted earlier this year that it would sell around $32 billion worth of Comirnaty in 2022, signing another major purchase agreement means it could top that estimate.

Source Fool.com