Pfizer again boosted its 2021 earnings and revenue expectations Tuesday, buoyed by the latest surge in Covid-19 vaccines, including regulatory approvals for boosters and shots for younger children.
The company now expects to deliver 2.3 billion doses in 2021 of the Covid-19 vaccine co-produced with Germany’s BioNTech, 200 million more than its previous forecast in July, as it announced an increase in the research and development budget linked to the vaccination push.
US health authorities on Friday approved a Pfizer vaccine for children ages 5 to 11, paving the way for 28 million young Americans to get a shot against the disease soon.
The company’s shares rose after the announcement, which comes on the heels of similarly optimistic earnings in May and July that also show how the vaccine has altered the drug company’s financial performance over the past year.
“Despite everything we’ve been able to achieve so far, we remain focused on our future, not our past,” said CEO Albert Burla. “Our ultimate goal is to help end this pandemic as quickly as possible, but also to apply the lessons we’ve learned through our work on the vaccine to all of our therapeutic areas.”
Burla said the company had about three-quarters of the US market share in late October and about 80 per cent in the European Union, and the result was “our booster being the first to be licensed for emergency use and our preferred two-dose series by some countries around the world for use in populations.” certain young people.
– More quest planned –
Last quarter, the company brought in $24.1 billion in revenue, more than double the level in the same period last year, with $13 billion linked to the Covid-19 vaccine.
Pfizer now forecasts total 2021 revenue for a vaccine of $36 billion, up from $33.5 billion in 2020.
Profits jumped to $8.1 billion, compared to $1.5 billion in the same period last year.
Pfizer increased its 2021 research and development budget by $400 million due to more projects related to Covid-19 vaccines and related mRNA-based projects, which now estimates spending in the range of $10.4 billion to $10.9 billion.
The press release describes the clinical research on the influenza mRNA vaccine in development, “the first in a planned wave of Pfizer’s research programs that leverage Pfizer’s mRNA technology.”
Burla spoke of the possibility of producing “perpetual demand” Covid-19 vaccines, similar to the flu vaccine.
While Pfizer’s financial performance boomed thanks to the Covid-19 vaccine, the company was criticized by NGOs for putting profits above public health in its dealings with governments during the shot.
A recent report by the advocacy group Public Citizen accused the company of “bullying” the authorities and called on the US government to exercise greater influence with the company.
Pfizer defended its actions, saying in a press release Tuesday that it plans to sell the US government one billion doses “at a not-for-profit price that will be donated to the world’s poorest countries free of charge to those countries.”
With the exception of the Covid-19 vaccine, Pfizer cut its 2021 revenue forecast slightly and raised its earnings forecast modestly.
The company saw sales of the anticoagulant drug Eliquis and the heart drug Vyndaqel soar.
Sales have fallen somewhat due to the recall of Chantix, an anti-smoking drug. The Food and Drug Administration said in September that Pfizer had enacted a voluntary recall of the drug due to a “theoretical possibility of increased cancer risk in humans.”
Pfizer shares jumped 3.0 percent to $44.96 in pre-market trading.