Pfizer share price gains 4% on expectations for $65 billion of Covid-19 vaccine sales

by Jonathan Adams

The Pfizer share price gained over 4% yesterday after the company behind one of the most used Covid-19 vaccines announced forward guidance for sales of the vaccine. The pharmaceuticals giant expects Covid-19 vaccine sales to bring in $36 billion this year and $29 billion next year, ahead of analysts’ expectations.

The 4.2% gain in the company’s valuation saw the share price rise $1.81 to close at $45.45 on Wall Street yesterday. The Pfizer share price is now up 32.6% over the past twelve months.

pfizer plc

The forward guidance on expected vaccine sales in 2022 has been increased to 1.7 billion doses and Pfizer told investors it was pushing to sign more deals worldwide that could boost that further. There is capacity to produce 4 billion doses next year.

The vaccine, developed in partnership with German biotech BioNTech, with whom Pfizer splits the gross profit on sales in most of the world, was the first to secure regulatory approval in the USA and then Europe. The FDA is expected to also give approval for the vaccine to be given to children in the five to eleven years age group by as early as the end of this week.

Covid-19 vaccine sales will make up as much as 44% of Pfizer’s total revenues for 2021. The company has, however, come in for criticism over the amount of money it is and will make from its vaccines. The company’s commercial policy stands in sharp contrast to those of AstraZeneca and U.S. peer Johnson & Johnson which both committed to sell their vaccines on a not-for-profit basis for as long as the pandemic is still classified as such globally. Pfizer’s defence is that the extent of the investment made by the private sector to develop the vaccines in record-breaking time deserves to be commercially rewarded. Pfizer and Moderna, the two early and most profitable vaccines are expected to dominate global sales next year as their supply chain is allowing for more doses to be produced and data indicates superior efficacy compared to rival vaccines like AstraZeneca’s.

Pfizer’s chief executive and chairman Albert Bourla commented:

“While we are proud of our third-quarter financial performance, we are even more proud of what these financial results represent in terms of the positive impact we are having on human lives around the world. Our ultimate goal is to help bring this pandemic to an end as quickly as possible, but also to apply the lessons we have learnt through our work on the vaccine to all of our therapeutic areas.”

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

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