The impending emergency use authorization of Pfizer’s Covid-19 vaccine in the United States is a major money making ticket for the company and its partner in the vaccine development.
Within the next year alone, $32 billion in revenues from sale of Covid-19 vaccines will be generated by Pfizer and Moderna, according to projections by Wall Street analysts.
That is apart from the value in increase in goodwill for the companies for having helped to bring an end to the worst pandemic that the world has faced in a century. For Moderna, which is a relatively new company that was not known at all prior to 2020, this boost will have a magnified impact. The company is on the verge of getting emergency use authorization for its Cvoid-19 vaccine that it has developed by itself.
According to Morgan Stanley, $19 billion is the projected revenue from Covid-19 vaccine sale in 2021 for Pfizer alone. That is in addition to an estimated $975 million in revenues from the vaccine in 2020 alone.
BioNTech, the German company it partnered with to develop the vaccine, will receive about half of the revenues earned by Pfizer. The FDA was advised by a panel of advisers on Thursday to grant emergency use authorization to vaccine candidate developed by the two companies. they are working “rapidly” to give the vaccine the authorization, US officials have said.
The United Kingdom has already authorized the Pfizer vaccine earlier this month.
Morgan Stanley projected that Pfizer will potentially also earn $9.3 billion more in revenues from the sale of Covid-19 vaccine in 2022 and 2023 as the world would continue to get vaccinated till them.
But since Pfizer is already a huge company, a boom in Pfizer’s share price has not been triggered by the vaccine breakthrough. So far this year, the stocks of the company had risen by 12 per cent – just lower than the 13.5 per cent overall gain recorded by the S&P 500 index.
Despite this, compared to the company’s pneumonia vaccine, its bestselling product last yearthat generated $5.8 billion in sales, the revenues expected to be raked in by Pfizer would be much higher for 2021.
On the other hand, the successful development of its Covid-19 vaccine has helped Moderna to transform from a virtually unknown company into a $62 billion pharma giant. The company’s shares have risen by 700 per cent so far this year and about half of the market value of the company is related to its vaccine, estimates Morgan Stanley.
According to Goldman Sachs, as much as $13.2 billion in Covid-19 vaccine revenue is expected pot be generated by Moderna next year.
However, more bullish estimates were issued by Morgan Stanley which predicted the company making revenues of between $10 billion to $15 billion from its Covid-19 vaccine in both 2021 and 2022 while billions more has been predicted in booster sales.
“It’s epic,” said Alan Carr, a biotech analyst at Needham. “It’s an historic achievement in drug development. To take a new technology in such a young company and have it ready just in time for the worst pandemic in a century is hard to imagine.”
(Adapted from CNN.com)