Pfizer Emerges as a Major Beneficiary of the COVID-19 Vaccine
The COVID-19 pandemic has brought about several winners in the business world, and one of the prominent names among them is Pfizer. According to a report from the SOMO Multinational Research Center based in the Netherlands, Pfizer has raked in a staggering $35 billion in profits.
In November 2021, Oxfam International revealed that Pfizer was making a profit of $1,000 per second for each vaccine sold.
Pfizer’s Financial Support from the German Government
Pfizer did not receive any funds from the Operation Warp Speed (OWS) initiative released in May 2020. However, the German government provided financial support amounting to $400 million. This support came in the form of APA agreements (Advance Purchase Agreements), which involved upfront payments to pharmaceutical companies. The total sum of these agreements reached a whopping $86.5 billion.
Rise in Vaccine Prices
The report also highlights the increase in vaccine prices due to declining demand after the end of the pandemic. The price of the Pfizer vaccine has risen from $19/30 to $110/130 today.
Uneven Distribution of Pfizer’s Vaccines
The report sheds light on the uneven distribution of Pfizer’s vaccines, with 67% of them going to the US and Europe.
Pfizer’s Application for Updated COVID-19 Vaccine
Last Friday, Pfizer submitted an application to the European Medicines Agency (EMA) seeking authorization for an updated COVID-19 vaccine targeting the Omicron subvariant XBB.1.5. This move follows the European agency’s support for the World Health Organization’s recommendation to update the antigen composition of COVID injections to target the dominant XBB variants before the next autumn vaccination campaign. Pfizer plans to do the same before the US regulator.
Analysts’ Views on Pfizer
According to TipRanks, Pfizer has received 15 analyst recommendations, including 6 buy and 9 hold ratings. The average price target is $47.62, with a high forecast of $75 and a low forecast of $35. This represents a 24.33% change from the last price of $38.30.
Credit Suisse analyst Trung Huynh maintains a buy recommendation with a $47 price target, while Chris Schott of JP Morgan has a hold recommendation with a $45 price target.
Pfizer closed on Friday at $38.28, experiencing a bearish week. The 70 SMA is above the last three bars, RSI is down at 45 points, and the fast (blue) line of the MACD is barely crossing below the slow (red) line, heading towards the zero level.
The medium and long-term support for Pfizer is at $36.17, while Ei indicators show a mixed outlook.
Pfizer has emerged as a major beneficiary of the COVID-19 vaccine, with the company reportedly making $35 billion in profits. The Dutch research center, SOMO Multinational Research Center, released a report highlighting Pfizer’s financial success during the pandemic. Oxfam International also revealed that Pfizer was earning $1,000 per second for each vaccine sold. While Pfizer did not receive funds from the Operation Warp Speed initiative, the German government provided $400 million in financial support through APA agreements. Additionally, the report mentions the rise in vaccine prices, with Pfizer’s vaccine price increasing from $19/30 to $110/130 currently due to declining demand.
How has Pfizer’s financial success during the pandemic affected the global distribution of COVID-19 vaccines?
Pfizer’s financial success during the pandemic has had a significant impact on the global distribution of COVID-19 vaccines. The company’s strong financial position has enabled them to invest heavily in vaccine research, development, and production, allowing them to quickly scale up manufacturing capabilities.
Firstly, Pfizer’s financial success has allowed them to enter into advanced purchase agreements with various governments and organizations around the world. These agreements ensure a certain number of vaccine doses for these entities, thereby ensuring a significant portion of the global vaccine supply.
Secondly, Pfizer’s financial resources have supported their manufacturing capabilities. The company has established partnerships with other vaccine manufacturers, such as BioNTech, to increase production capacity. These partnerships have been crucial in meeting global demand for COVID-19 vaccines.
Furthermore, Pfizer’s financial success has enabled them to invest in cold-chain distribution infrastructure. The Pfizer-BioNTech vaccine requires ultra-cold storage, which can be challenging in many parts of the world. However, the company has invested in specialized storage and transportation equipment, ensuring that the vaccine can be distributed to even the most remote areas.
Additionally, Pfizer’s financial success has allowed them to offer vaccines at affordable prices or even through donation programs to low-income countries. This has helped ensure equitable distribution and access to the vaccines, particularly in regions where healthcare resources and funding may be limited.
Overall, Pfizer’s financial success has played a critical role in ensuring a robust global distribution of COVID-19 vaccines by supporting research and development, manufacturing capabilities, cold-chain distribution, and affordable access for various countries and populations.