The Big Business of COVID-19 Vaccines
As NSW prepares to re-open on October 11 after more than three-months of lockdown, vaccinations have been at the center of public health messaging. At the time of writing, almost 90% of the eligible population have had at least one dose and more than 70% have had two doses. Across the nation, similar public health messaging has focused strongly on getting vaccinated for those who are able to.
At the center of this roadmap to escape the revolving door of lockdowns and restrictions are the drug companies producing these vaccines. Global biotech companies are anticipating record profits for the production of the vaccines that many nations are hoping will be the key to transitioning to learning to live with the virus.
Pfizer, which is providing 40 million doses of vaccine to Australia, is predicting a whopping $US15 billion ($AU19.4 billion) in revenue this year from the vaccine alone. Pfizer CEO Albert Bourla said COVID-19 vaccines would create “repeated business” for Pfizer in the coming years as the fight against variants of the virus continued. Pfizer was also considering other uses of the mRNA technology behind the vaccine, he said.
This comment raises an interesting point, and in the U.S there is evidence of this happening already. U.S health officials have recently endorsed booster shots of the Pfizer vaccine for all Americans 65 and older — along with tens of millions of younger people who are at higher risk from the coronavirus because of health conditions or their jobs. Officials described this move as a first step, and one that will be keenly watched by biotechs across the world.
But to what extent is this fair, when nations crippled by a health and economic crisis rely so desperately on these few companies to protect their citizens? Some believe that the profits are justified given the resources invested to develop, test, and mass-produce the vaccines. Others feel that governments across the world should secure vaccine deals, whatever the cost may be. It is a difficult question to answer, and one that ultimately comes down to the priorities of a nation and its approach to handling the pandemic.
Booster shots will likely be offered even more broadly in the coming weeks or months in the U.S, including boosters of vaccines made by Moderna and Johnson & Johnson. That, plus continued growth in initial vaccinations, could mean a huge gain in sales and profits for Pfizer and Moderna in particular. “The opportunity quite frankly is reflective of the billions of people around the world who would need a vaccination and a boost,” Jefferies analyst Michael Yee said.
It is estimated booster sales are at $26 billion in global sales next year for Pfizer and BioNTech and around $14 billion for Moderna if they are endorsed for nearly all Americans. Australia will likely experience a similar need for booster shots next year, when the efficacy of vaccines reduces over time - ensuring deals with drug companies that will be eager to meet demand.
These estimates all indicate that the business of vaccines can be incredibly lucrative for those select companies that get it right. Only time will tell how many billions of dollars of revenue vaccines will generate for these biotech giants, but it is clear that as the world looks towards vaccinations to deal with the pandemic, there will be no shortage of business.
As NSW prepares to re-open on October 11 after more than three-months of lockdown, vaccinations have been at the center of public health messaging. At the time of writing, almost 90% of the eligible population have had at least one dose and more than 70% have had two doses. Across the nation, similar public health messaging has focused strongly on getting vaccinated for those who are able to.
At the center of this roadmap to escape the revolving door of lockdowns and restrictions are the drug companies producing these vaccines. Global biotech companies are anticipating record profits for the production of the vaccines that many nations are hoping will be the key to transitioning to learning to live with the virus.
Pfizer, which is providing 40 million doses of vaccine to Australia, is predicting a whopping $US15 billion ($AU19.4 billion) in revenue this year from the vaccine alone. Pfizer CEO Albert Bourla said COVID-19 vaccines would create “repeated business” for Pfizer in the coming years as the fight against variants of the virus continued. Pfizer was also considering other uses of the mRNA technology behind the vaccine, he said.
This comment raises an interesting point, and in the U.S there is evidence of this happening already. U.S health officials have recently endorsed booster shots of the Pfizer vaccine for all Americans 65 and older — along with tens of millions of younger people who are at higher risk from the coronavirus because of health conditions or their jobs. Officials described this move as a first step, and one that will be keenly watched by biotechs across the world.
But to what extent is this fair, when nations crippled by a health and economic crisis rely so desperately on these few companies to protect their citizens? Some believe that the profits are justified given the resources invested to develop, test, and mass-produce the vaccines. Others feel that governments across the world should secure vaccine deals, whatever the cost may be. It is a difficult question to answer, and one that ultimately comes down to the priorities of a nation and its approach to handling the pandemic.
Booster shots will likely be offered even more broadly in the coming weeks or months in the U.S, including boosters of vaccines made by Moderna and Johnson & Johnson. That, plus continued growth in initial vaccinations, could mean a huge gain in sales and profits for Pfizer and Moderna in particular. “The opportunity quite frankly is reflective of the billions of people around the world who would need a vaccination and a boost,” Jefferies analyst Michael Yee said.
It is estimated booster sales are at $26 billion in global sales next year for Pfizer and BioNTech and around $14 billion for Moderna if they are endorsed for nearly all Americans. Australia will likely experience a similar need for booster shots next year, when the efficacy of vaccines reduces over time - ensuring deals with drug companies that will be eager to meet demand.
These estimates all indicate that the business of vaccines can be incredibly lucrative for those select companies that get it right. Only time will tell how many billions of dollars of revenue vaccines will generate for these biotech giants, but it is clear that as the world looks towards vaccinations to deal with the pandemic, there will be no shortage of business.
