(Bloomberg) -- BioNTech SE plunged in US trading after the German biotech reported its first loss since 2020 due to lower demand for the Covid-19 shots it makes with Pfizer Inc.

Pfizer’s write-offs of unused vaccine inventory cut into BioNTech’s share of the profit in the second quarter. The biotech’s American depositary receipts fell more than 10% in New York. Fellow vaccine-maker Moderna Inc. — which earlier this month raised its Covid-19 vaccine sales outlook for the year — slumped as much as 9%. 

BioNTech is pumping its pandemic-era profit into a broad pipeline of experimental drugs for other infectious diseases and hard-to-treat cancers. Until those projects reach fruition, however, the Covid vaccine remains its only marketed product. 

The company sees dealmaking opportunities to boost its pipeline, with potential targets in a price range of less than $1 billion, Chief Strategy Officer Ryan Richardson said in a call with analysts. An acquisition would have to be a very good strategic fit for BioNTech to consider a larger move, he added.

BioNTech swung to a second-quarter loss of 79 euro cents per share, compared to diluted earnings per share of €6.45 ($7.09) for the prior-year period. Analysts had anticipated a loss of 60 cents per share.

Amid uncertainty for the Covid vaccine market, BioNTech is also paring back some spending on research and development. The company expects €2 billion to €2.2 billion in R&D spending this year, cutting €400 million from both sides of the range. It will also trim this year’s capital expenditure budget from as much as €600 million to as much as €450 million. 

The company maintained its forecast for about €5 billion in vaccine sales this year. Sales of the shots should pick up in the second half due to seasonal effects, BioNTech said. Delivery of the latest variant-adapted shot is expected to start as early as next month. 

--With assistance from Matt Turner.

(Updates trading for BioNTech and adds Moderna in the second paragraph.)

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