Pfizer Vaccine 'Most Lucrative Drug in the World'?
Pfizer Vaccine 'Most Lucrative Drug in the World'?Follow @KnightsTempOrg
Pfizer’s Covid vaccine is already the second-highest revenue-generating drug in the world. Once the pandemic ends, the vaccine maker plans to hike prices.
Pfizer’s COVID vaccine is already the second-highest revenue-generating drug in the world — but the company plans to turn the vaccine into an even bigger cash cow once the pandemic ends, according to news reports.
The vaccine maker expects 2021 sales of about $15 billion based on current contracts for its COVID vaccine, but that number could double as Pfizer says it can potentially deliver 2 billion doses this year, according to The Guardian.
One analyst speculated that Pfizer could be targeting a price 3 to 4 times higher than the $19.50 the company currently charges the U.S. government — or even up to $156 per dose.
Pfizer based the vaccines’ current price on the need for governments to secure doses and get the virus under control. The company splits the profits 50-50 with German partner, BioNTech.
Under Operation Warp Speed, Pfizer agreed to supply the U.S. government with 100 million doses of its vaccine for $1.95 billion, so Americans can receive the vaccine for free.
Pfizer’s initial contract included an option for the government to buy up to 500 million more doses at $19.50 per dose. That’s well below the $150 or $175 per dose the drugmaker typically pulls in for a vaccine, D’Amelio said during the February earnings call.
In comparison, the Moderna vaccine is priced at $15 per dose, Johnson & Johnson (J&J) is $10 and AstraZeneca’s COVID vaccine is $4 per dose, reported Fierce Pharma.
Pfizer executives unveiled the company’s $15 billion sales estimate as part of the company’s 2021 guidance, based on doses set to be delivered in 2021 under existing contracts.
To put $15 billion into perspective, Pfizer also markets the bestselling vaccine outside of COVID –– pneumococcal shot Prevnar 13. In 2020, Prevnar 13 revenues were $5.85 billion. Pfizer’s entire vaccine franchise pulled in $6.56 billion in 2020, reported Fierce Pharma.
As initial demand for its COVID vaccine subsides, the company could make significant profits by charging higher prices and implementing routine booster doses for new variants of the virus, Pfizer CEO Albert Bourla told analysts, big banks and investors during the February earnings call.
During the Barclays’ Global Health Conference, D’Amelio said the company doesn’t see this as a one-time event, but “as something that’s going to continue for the foreseeable future.”
Pfizer has already launched a study of a third vaccine dose to address variants, called for annual boosters and told investors to expect a revenue stream similar to flu vaccines.
“Every year, you need to go get your flu vaccine,” Bourla said. “It’s going to be the same with COVID. In a year, you will have to go and get your annual shot for COVID to be protected.”
That will mean even more sales — and more profits — from the vaccine, reported WRCBtv, a CBS subsidiary.
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