Cleveland, Ohio 2021-09-25 17:23:49 –
** Related video above: Pfizer releases the side effects experienced after booster shots. ** **
(AP) — As the United States moves towards pharmacy, billions more profits are at stake for some vaccine makers. COVID-19 (New Coronavirus Infection) Booster shots to enhance American protection against viruses.
How much profit a manufacturer can make depends on how big the deployment is.
Authorities described the move as a first step. Boosters may be more widely available in the coming weeks or months, including vaccine boosters manufactured by Moderna and Johnson & Johnson. In addition to this, the continued growth of early vaccination could mean a significant increase in sales and profits, especially for Pfizer and Moderna.
“This opportunity, frankly, reflects billions of people around the world in need of vaccination and boost,” said Jeffreys analyst Michael Yee.
Wall Street is paying attention. Analysts’ average forecast for 2022 earnings in Modana has skyrocketed 35% since President Joe Biden announced a booster plan in mid-August.
Most of the vaccinations in the United States to date have come from Pfizer and Moderna, who developed the shots at BioNTech in Germany. They inoculated about 99 million and 68 million, respectively. Johnson & Johnson is the third with about 14 million people.
No one yet knows how many people will get additional shots. However, Morningstar analyst Karen Andersen said that boosters alone will generate about $ 26 billion in global sales for Pfizer and BioNTech next year, and about 140 if Moderna’s sales are approved by almost all Americans. Expected to be $ 100 million.
Those companies may also get business from the people who first got the other vaccines. In the UK, which plans to provide boosters to everyone over the age of 50 and other vulnerable people, a panel of experts recommends Pfizer’s shots as the first choice and the use of Moderna instead. doing.
Andersen predicts that if boosters are widely licensed, Moderna, with no other products on the market, will generate about $ 13 billion in profits from the sale of all COVID-19 vaccines next year.
Although it is difficult to estimate Pfizer’s potential vaccine profits, company executives said they expect the pre-tax adjusted profit margin from vaccines to be in their “late 20s” as a percentage of revenue. Based on Andersen’s forecast, boosters alone will make about $ 7 billion in profits next year.
J & J and AstraZeneca in Europe have stated that they do not intend to benefit from the COVID-19 vaccine during a pandemic.
In the case of Pfizer and Moderna, boosters can be more profitable than the original dose because they do not include the R & D costs incurred by the company to bring the vaccine to market first.
Steve Brozac, CEO of WBB Securities, said booster shots represent a “nearly pure benefit” compared to the initial dose.
Pharmaceutical companies aren’t the only ones who can see a plunge due to booster offerings. According to Jeff Jonas, portfolio manager at Gabelli Funds, drugstore chains CVS Health and Walgreens can each generate more than $ 800 million in revenue.
Jonas said drugstores may not face competition with mass vaccination clinics this time, and the chain is keen to collect customer contact information. This makes it easy to invite people to boosters.
Pharmaceutical companies are also developing COVID-19 shots that target specific variants of the virus, saying people may need annual shots to receive for the flu. All of them have the potential to make vaccines a major source of recurring income.
The COVID-19 vaccine is far superior to previous vaccines.
Pfizer said in July that it expects revenue from the COVID-19 vaccine to reach $ 33.5 billion this year. This may vary depending on the impact of boosters and the potential for increased injections in elementary school.
That’s more than five times the $ 5.8 billion accumulated last year by Pfizer’s Prevnar 13, the world’s most profitable vaccine to protect against pneumococcal infections.
It will also dwarf the $ 19.8 billion brought in last year by AbbVie’s rheumatoid arthritis drug Fumira, which is widely recognized as the world’s best-selling drug.
Eric Gordon, a business professor at the University of Michigan, said this was a precursor to future vaccine development.
Vaccines are usually not as beneficial as treatment, according to Gordon. However, the success of COVID-19 Shots has the potential to attract more pharmaceutical companies and venture capitalists into this area.
“The vaccine business is more attractive and good for us in need of vaccines,” Gordon said.
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