Pfizer Inc. (NYSE: PFE) and BioNTech SE (Nasdaq: BNTX) announced on Wednesday a new vaccine supply agreement with the US government involving 105 million doses of its COVID-19 vaccine. The agreement also includes an option for Washington DC to purchase up to 195 million additional doses.
The US government will pay the biotech firms around US$3.2 billion for the initial 105 million doses, set to be delivered “as soon as late summer 2022 and continue into the fourth quarter of this year.”
“Vaccines have been and will remain critical to protecting people of all ages against COVID-19,” said Pfizer CEO Albert Bourla. “We remain proud of our long-term partnership with the U.S. government in helping to address this pandemic, and of the ongoing impact of vaccination efforts in the U.S. and around the world.”
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The purchase, the company said, may include adult Omicron-adapted COVID-19 vaccines which are yet to secure authorization from the US Food and Drug Administration.
The announcement of the agreement comes days after the two firms announced positive data evaluating the safety, tolerability, and immunogenicity of two Omicron-adapted COVID-19 vaccine candidates within its portfolio.
Given the agreement’s consideration, the deal puts the vaccine’s tag price at US$30.48 per dose. Should the White House exhaust the option to purchase all 300 million doses under the agreement, this puts the total agreement’s cost at US$9.14 billion–around 35.6% of Pfizer’s reported quarterly revenue in April 2022.
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Pfizer last traded at US$51.78 on the NYSE while BioNTech last traded at US$142.68 on the Nasdaq.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
