Pfizer expects to have $ 15 billion in sales this year from its Covid-19 vaccine

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The fourth-quarter earnings report was the first since Pfizer’s Covid-19 vaccine received clearance from the U.S. Food and Drug Administration in December – the first vaccine to receive such approval. Since then, the vaccine, developed in collaboration with the German company BioNTech, has begun to be introduced nationwide as well as elsewhere in the world.

The vaccine contributed $ 154 million to sales in the fourth quarter. Pfizer’s projection for vaccine revenues in 2021 mainly includes doses that are expected to be delivered under existing contracts and can be updated as new contracts are executed, the company said, indicating that revenues could be even greater. The company added that patients will likely need regular boosts of the vaccine to “maintain the immune response and counter emerging variant strains,” which would mean continued revenue from the product after this year.

Pfizer (PFE) said it shipped 65 million doses to date, including 29 million to the United States. The company expects to have delivered 200 million doses to the United States by the end of May, reaching the mark two months ahead of its contractual commitment.
The company said it could potentially make a total of 2 billion doses worldwide by the end of 2021, based on expanding current facilities and “ depending on adding more suppliers and contract manufacturers, ” although it is uncertain whether it will actually make all those doses. will sell. . French pharmaceutical company Sanofi recently signed on to fill and package more than 100 million vials of the Pfizer vaccine this year in an effort to meet the massive demand for the injections as much of the world continues to be ravaged by the pandemic.

The company raised its overall earnings forecast for 2021 to between $ 3.10 and $ 3.20 a share, thanks in part to projected revenue contributions from the vaccine.

The projection was a bright spot in an otherwise mixed earnings report. Pfizer posted quarterly sales of nearly $ 11.7 billion, up 12% from the same period last year and slightly ahead of Wall Street analyst forecasts. Earnings per share were $ 0.42, but fell short of Wall Street expectations. The company’s stock fell nearly 3% in early trading on Tuesday.

Sanofi assists in the production of 100 million Pfizer / BioNTech vaccine doses

Pfizer emerges from a major restructuring of the company, which saw several divisions of the business split off to focus on developing and distributing more innovative drugs. While it plays an important role in the fight against the coronavirus, Pfizer’s broader activities were challenged by the pandemic – fewer people leaving home to see their doctors meant fewer new prescriptions for some of the the main products of Pfizer. recovery “in broader healthcare activities in 2021 as more people are vaccinated.

Pfizer posted annual sales of $ 41.9 billion, an increase of 2% from the prior year.

“2020 has been a year of transformation not only for Pfizer, but for the lives of every patient in every community we serve,” Albert Bourla, Pfizer CEO, said in a statement. “We saw the culmination of Pfizer’s decade-long transition to a pure, scientific and innovative company … Our record-breaking success in developing a vaccine against Covid-19, together with our partner BioNTech, is just one example of this. what we think this new Pfizer can achieve. “

Bourla expressed optimism about the company’s pipeline of products beyond the Covid-19 vaccine, including cancer drugs and a pneumonia vaccine, during a conversation with analysts Tuesday morning. The company reaffirmed its projected compound annual revenue growth of at least 6% through 2025, excluding potential contributions from the vaccine.

The CEO also said Pfizer hopes to work with lawmakers to help patients afford expensive drugs more easily – high drug prices are one of the top health complaints of Americans.

“We believe the industry has generated a lot of goodwill from Congress and public opinion with our Covid-19 treatment and vaccinations, and we hope we can build on this goodwill by working together on a solution, including contributing as an industry through legislation or executive action that results in lower out-of-pocket costs for patients, ”said Bourla. “The status quo simply will not make it and we look forward to working with the Biden administration and members of Congress from both sides of the aisle to ensure our breakthroughs are accessible to all.”

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