The Economic Future of Pfizer
Pfizer’s stock prices have seen a large overall increase since March of 2020 — will the promise of additional doses of the COVID-19 vaccine ensure Pfizer financial sustainability?
As we enter the second year of the COVID-19 pandemic, Albert Bourla, Chief Executive Officer of Pfizer shares a thorough update of how the company intends to adapt with the virus. Pfizer, a pharmaceutical company that produces one of the most common COVID-19 immunizations, has provided relief to may countries by delivering vaccinations. Canada is set receive 1.5 million doses in March. Currently, Pfizer’s two-dose COVID-19 vaccine has 95% efficacy rate against the most widely known strain of the virus. Now, as vaccine rollout has begun worldwide, Pfizer has provided insight into its current and upcoming projects.
In February 2021, Albert Bourla spoke about a possible third dose of the Covid-19 vaccine and its potential to strengthen immunity. In an interview conducted by NBC News, Bourla said: “We believe that the third dose will raise the antibody response 10- to 20-fold.” With increased immunity throughout the population, international economics can resume a (somewhat altered) sense of normalcy. And, in anticipation of this possible reality, Pfizer will conduct another clinical trial to determine the efficacy of this third dose. According to Bourla, the age range for the study will be a broad one, with participants 18–85 years old, with the exception of those 56–64 years old.
While Pfizer originally recommended that the doses be administered 3 weeks apart, some countries like Canada are extending that period to 16 weeks. Canada’s plan is to vaccinate as many people as possible, even if it’s only with one dose. This stresses the cruciality of mass immunizations against COVID-19. Restoring the mental and physical health of the population, as well as the health of our economy is resting in the sure hands of science.
With medical discovery and innovation in mind, Mr. Bourla also mentioned an adjusted version of the COVID-19 vaccine to protect against the South African variant (501Y.V2), which has been found in more than 30 countries. If Pfizer’s “adjusted” vaccine can, in fact, protect people against the new variant, this would be a major success for the company, scientifically and financially. Last week, AstraZeneca’s COVID-19 vaccine proved ineffective against the 501Y.V2 variant. Until a vaccine from another manufacturer, like Moderna, can prevent infection against the new variant, Pfizer may have a headstart to a lucrative race.
Aside from the projected third dose and a vaccine to protect against variants, Pfizer has one more proposal: “Every year, you need to go to get your flu vaccine,” Bourla stated. “It’s going to be the same with Covid. In a year, you will have to go and get your annual shot for Covid to be protected.” Pfizer plans to develop and deliver upon a booster vaccine to be administered even after the pandemic is over. Countries may not only be negotiating contracts with Pfizer in the short term — purchasing vaccines from the company may become a yearly investment.
All in all, Pfizer has managed to produce a two-dose vaccine with a 95% efficacy rate, deliver it to countries worldwide, and to make it profitable. In February of 2021, Pfizer was estimated to be paid $15 billion for COVID-19 vaccines in 2021, including the 6% increase from 2020. More recently, Pfizer (along with other vaccine manufacturers) promised their investors to increase the price of their long-awaited product once conditions begin to improve. These plans would have the ability to monetize the contagious and enduring nature of COVID-19 and its variants.
To date, Pfizer stock has increased by 31% of its price on March 23rd, 2020, a number that has averaged much higher in the past year. Pfizer has also been granted numerous large contracts with nations to provide millions of doses. The future of Pfizer isn’t limited by COVID-19 vaccines, and neither is their financial stability. Even if it were, though, the initial vaccines, variant vaccines and booster shots solidify the reality and sustainability of Pfizer’s wealth.
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