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Pfizer expects higher COVID-19 vaccine prices, yearly boosters, CFO says. And that means big sales
Mar 17, 2021
Excerpt:
Pfizer made headlines last month when its chief financial officer said the company would look to raise COVID-19 vaccine prices after the pandemic wanes. The company is doubling down on that stance, and it now believes annual vaccinations are "increasingly likely."
Add those two things together, and you get a hefty long-term revenue stream.
During a recent virtual investor conference (PDF) hosted by Barclays, Pfizer Chief Financial Officer Frank D’Amelio said the company sees “significant opportunity” for its COVID-19 vaccine once the market shifts from a “pandemic situation to an endemic situation.”
Pfizer has said it expects $15 billion in revenue from the mRNA vaccine this year, and that number could grow as the company negotiates new supply deals. At the Barclays event, D’Amelio said his company expects “return after taxes” of around 25% on the $15 billion figure, or around $3.75 billion. The CFO previously said he expects margins for the vaccine to grow over time.
https://www.fiercepharma.com/pharma/pfizer-sees-need-for-annual-revaccinations-and-rationale-for-higher-prices-after-pandemic
Excerpt:
Pfizer made headlines last month when its chief financial officer said the company would look to raise COVID-19 vaccine prices after the pandemic wanes. The company is doubling down on that stance, and it now believes annual vaccinations are "increasingly likely."
Add those two things together, and you get a hefty long-term revenue stream.
During a recent virtual investor conference (PDF) hosted by Barclays, Pfizer Chief Financial Officer Frank D’Amelio said the company sees “significant opportunity” for its COVID-19 vaccine once the market shifts from a “pandemic situation to an endemic situation.”
Pfizer has said it expects $15 billion in revenue from the mRNA vaccine this year, and that number could grow as the company negotiates new supply deals. At the Barclays event, D’Amelio said his company expects “return after taxes” of around 25% on the $15 billion figure, or around $3.75 billion. The CFO previously said he expects margins for the vaccine to grow over time.
https://www.fiercepharma.com/pharma/pfizer-sees-need-for-annual-revaccinations-and-rationale-for-higher-prices-after-pandemic
Fellow Democrats pressure Biden to weaken vaccine patents
But vaccines may not be free in the future should Americans need boosters, and a pending Trump-era proposed rule could take away the government's ability to step in and reduce costs.
Biden will soon have to decide what to do about a rule proposed by the National Institute of Standards and Technology in the final weeks of Donald Trump's presidency that could help drug companies maintain complete control over drug prices, even when taxpayer dollars have funded much of the research and development.
The 1980 Bayh-Dole Act allows for the government to "march in" and issue a compulsory license for a federally funded invention if the invention is not available to the public under reasonable terms. Practically, this means the federal government could break patents for federally funded drugs or vaccines to authorize generic competition if regulators determine the price is exorbitantly high.
COVID-19 drug and vaccine contracts vary on march-in rights. Moderna's contract contains the standard march-in clause, and Novavax's vaccine contract generally tracks with the Bayh-Dole Act, according to Knowledge Ecology International, a nonprofit group whose precursor organization was founded by consumer advocate Ralph Nader. Johnson & Johnson's contract limits march-in rights to during the pandemic. Pfizer's vaccine was developed entirely with private funds and prohibits the government from marching in.
https://www.rollcall.com/2021/04/05/fellow-democrats-pressure-biden-to-weaken-vaccine-patents/
But vaccines may not be free in the future should Americans need boosters, and a pending Trump-era proposed rule could take away the government's ability to step in and reduce costs.
Biden will soon have to decide what to do about a rule proposed by the National Institute of Standards and Technology in the final weeks of Donald Trump's presidency that could help drug companies maintain complete control over drug prices, even when taxpayer dollars have funded much of the research and development.
The 1980 Bayh-Dole Act allows for the government to "march in" and issue a compulsory license for a federally funded invention if the invention is not available to the public under reasonable terms. Practically, this means the federal government could break patents for federally funded drugs or vaccines to authorize generic competition if regulators determine the price is exorbitantly high.
COVID-19 drug and vaccine contracts vary on march-in rights. Moderna's contract contains the standard march-in clause, and Novavax's vaccine contract generally tracks with the Bayh-Dole Act, according to Knowledge Ecology International, a nonprofit group whose precursor organization was founded by consumer advocate Ralph Nader. Johnson & Johnson's contract limits march-in rights to during the pandemic. Pfizer's vaccine was developed entirely with private funds and prohibits the government from marching in.
https://www.rollcall.com/2021/04/05/fellow-democrats-pressure-biden-to-weaken-vaccine-patents/
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