Pfizer And Moderna’s Inoculation Rake-In

Yesterday was a big day. Just over three-quarters of a year since the start of the pandemic, the inoculation process began in the U.S. Wall Street analysts predict a significant haul for Pfizer and Moderna, anticipating the firms will earn…

Oliver Rogers
Pfizer And Moderna’s Inoculation Rake-In
Sign up for insightful business news.

Yesterday was a big day. Just over three-quarters of a year since the start of the pandemic, the inoculation process began in the U.S.

Wall Street analysts predict a significant haul for Pfizer and Moderna, anticipating the firms will earn a collective $32 billion from the vaccines in 2021 alone. Talk about a shot in the arm.

Shot-Makers, Profit-Takers

Morgan Stanley projects Pfizer will reap $19 billion in Covid-19 vaccine revenue in 2021. That blows away its best-selling product – a pneumonia vaccine that brought in $5.8 billion in sales last year.

And looking ahead, Morgan Stanley expects Pfizer to collect another $9.3 billion in revenue in 2022-23 as its vaccine rolls out worldwide.

Unlike Pfizer, an established pharmaceutical maven, Moderna’s Covid-19 vaccine put the company on the map. Moderna has never previously licensed a product and had just $60 million in 2019 sales.

With its shot on the cusp of FDA approval and shares up almost 700% in 2020, Morgan Stanley says Moderna investors expect $10 to $15 billion of Covid-19 vaccine sales in each of the next two years. Goldman Sachs similarly pegs the company’s 2021 vaccine spoils at $13.2 billion.

Taking Shots

Not everyone is over the moon about Pfizer and Moderna pocketing tens of billions of dollars during a global pandemic. Eli Zupnick of progressive watchdog Accountable.US calls it “absolutely wrong” for drug companies to profit on vaccines “so heavily subsidized and supported by American taxpayers.”

  • Moderna received $955 million in federal grants to support its vaccine development, along with direct access to government scientists to examine its vaccine.
  • Pfizer locked up an agreement with the federal government to offload its first 100 million doses for $1.95 billion, giving the company a guaranteed initial market upon getting the FDA go-ahead.

Still others defend the companies as private institutions who have invested heavily in building their technology platforms. Pfizer said its vaccine development has been “entirely self-funded, with billions of dollars already invested at risk.”

The Holiday Spirit: Competitors Johnson & Johnson and AstraZeneca have pledged to offer their vaccines on a not-for-profit basis, at least during the pandemic.

Analysis more
(Photo Credit: Towfiqu Barbhuiya/Unsplash)

Private Practice: A Q&A with Pierre Valade, Founder of Privacy App Jumbo

(Photo Credit: Nate DeWaele/Unsplash)

The Brontosaurus Bubble: Could the bottom fall out of the dinosaur fossil market?

Recent News

Private Practice: A Q&A with Pierre Valade, Founder of Privacy App Jumbo

Subways Sales Climb for First Time in Years as the Company Looks to Expand in Foreign Markets

Florida Tops New York New Jobs Report

Sony Bids Farewell to PlayStation Supply Chain Woes