Pfizer Sees Covid-19 As ‘Durable’ Revenue Stream As Profits Rise

Pfizer has significantly raised its earnings and profit forecasts on Tuesday due to the significant increase in Covid-19 vaccine sales in preparation for a “permanent” source of revenue after the pandemic.

Pharmaceutical companies reported a surge in profits in the first quarter based on the surge in revenue, with nearly a quarter of sales coming from the Covid-19 vaccine.

Working with German partner BioNTech, pharmaceutical giants are increasing vaccine production and currently estimate revenues from vaccines in 2021 from $ 15 billion to $ 26 billion projected in February.

Albert Bourla, CEO, told analysts that individuals between the ages of 12 and 15 are seeking US approval to vaccinate and will provide booster shots until 2024. He said he was talking to “basically all governments in the world.” At a conference call.

We are studying the effectiveness of these injections more than 6 months after the second vaccination and are developing doses that can be stored at standard refrigeration temperatures for up to 10 weeks.

Bula expects a “permanent demand” for the Covid-19 vaccine, as well as the flu vaccine.

“We hope that the Pfizer-BioNTech vaccine will continue to have global influence by curbing catastrophic pandemics and helping to open the world’s economies as well as keep them open.” Bula said before the prepared remarks. Conference call late Tuesday.

He said it would create “a scenario in which Pfizer can remain both a leader and a beneficiary.”

Pfizer is widely praised for its technology in developing breakthrough vaccines at record speeds. But critics have called the benefits awkward given the split availability of vaccines between rich and poor countries.

World Health Organization Chief Tedros Adhanom Ghebreyesus last month condemned “a shocking imbalance in the global distribution of vaccines” and strengthened WHO’s Covax program aimed at giving poor countries access to shots. I called for effort.

The World Trade Organization also held a conference on the waiver of intellectual property rules. This opens the door to broader production of vaccines.

Pfizer’s net profit was $ 4.9 billion, up 45% from the year-ago quarter.

Revenues also increased 45% to $ 14.6 billion, including sales of the Covid-19 vaccine of $ 3.5 billion.

Pfizer, Belgium with increasing capacity-Pfizer CEO Albert Bourla of BioNtech Covid-19 Vaccine Plant

Tuesday’s results include a rise from the Covid-19 vaccine, which generated a “high 20” margin, showing a profit of about $ 900 million in the last quarter.

As of May 3, Pfizer and BioNTech have shipped approximately 430 million doses of vaccine to 91 countries around the world.

The company has reached an agreement with Covax, a globally pooled coronavirus vaccine procurement effort aimed at providing vaccines to low- and middle-income countries, to provide up to 40 million doses of vaccine. Did.

However, the company pointed out a series of deals on Tuesday to expand its offerings in richer countries.

During the quarter, Pfizer and BioNTech reached an agreement to provide additional supplies to the United States and the European Union.

Pharmaceutical companies reached an agreement with Israel to supply millions of doses in 2022, reached an agreement with Canada to supply 125 million doses in 2022 and 2023, and by 2024 Said there are options.

Pfizer defended its approach to vaccine pricing and said it had eased pricing through a “pandemic phase” that could last until 2022 at a “promoting widespread access” level.

Pfizer says it charges $ 19.50 per dose of vaccine in the United States, but does not disclose the margin.

Zain Rizvi, a law and policy researcher at the progressive NGO Public Citizen, said the increase in Pfizer’s interests indicates that the government needs to take action to save lives.

“Pfizer is investing in crisis and storage technology, even though billions of people around the world go without vaccines,” Lizbi said in an email to AFP.

“Pfizer’s profitability indicates an urgent need for government intervention. The government demands that Pfizer share technology with manufacturers around the world to help expand global production. Should be. “

The company is building more production capacity, with at least 3 billion doses expected in 2022, up from the current forecast of 2.5 billion in 2021. Pfizer said in February that it expects up to 2 billion doses in 2021.

Pfizer shares fell 0.1% to $ 39.78 in early afternoon trading.

Pfizer Sees Covid-19 As ‘Durable’ Revenue Stream As Profits Rise Source link Pfizer Sees Covid-19 As ‘Durable’ Revenue Stream As Profits Rise

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