Demand for Pfizer’s Covid vaccine could boost its revenue for years, the U.S. drug giant has said.
Pfizer said it expected “lasting demand” for the vaccine, much like the flu shots.
In the first three months of 2021, the vaccine generated $ 3.5 billion (£ 2.5 billion) in revenue as governments scrambled to contain the pandemic.
Treatment revenue is expected to reach $ 26 billion this year, more than a third of Pfizer’s sales.
The forecasts are based on contracts already signed for 1.6 billion doses of vaccines to be delivered this year.
Pfizer said it expects to sign more deals this year and is in supply talks with several countries for 2022 and beyond.
“Based on what we have seen, we believe that sustained demand for our Covid-19 vaccine – similar to that of influenza vaccines – is a likely outcome,” said Chief Executive Officer Albert Bourla.
The two-dose vaccine was Pfizer’s best-selling product in the first trimester.
The costs and profits of the vaccine are split 50-50 between Pfizer and its German partner BioNTech.
Pfizer and US company Moderna are profiting from their vaccines, while AstraZeneca and US giant Johnson & Johnson are providing theirs at cost as the pandemic continues.
Pfizer recently signed a contract with the UK to deliver an additional 60 million doses in 2021.
He is currently testing the use of a third dose of his vaccine as a booster and expects the United States to give the green light for it to be used in children between the ages of 12 and 15 during the pandemic.
It is also testing the safety and effectiveness of the vaccine in children six months to 11 years old, he said in a prepared statement.
Michelle Fleury, Business Correspondent for North America
Unlike rivals Astra Zeneca and Johnson & Johnson who pledged to forgo profits on the vaccine during the pandemic, Pfizer planned to make money on its vaccines.
Tuesday’s results show just how badly.
Its vaccines business has grown from $ 1.61 billion in the first three months of 2020 to $ 4.89 billion for the same period this year. That’s over 300% growth.
And he is likely to reap millions of additional benefits from the Covid vaccine.
The Pfizer vaccine will require a booster injection within a year of receiving the first two doses. It plans to seek emergency use authorization from U.S. regulators in July.
And more hits equals more money.
The booster vaccine offers the first clue as to how much pharmaceutical companies can produce from their Covid vaccines over the long term.