Pfizer COVID vaccine price hike to boost revenue for years, rivals may follow
Key Excerpts from Article on Website of Reuters
Posted: October 31st, 2022
Pfizer's plan to as much as quadruple U.S. prices for its COVID-19 vaccine next year is beyond Wall Street's expectations and will spur its revenue for years despite weaker than anticipated demand for the new booster shot so far, analysts said. The drugmaker, which developed and sells the vaccine with Germany's BioNTech, said on Thursday evening that it is targeting a range of $110 to $130 a dose for the vaccine once the United States moves to a commercial market next year. Analysts said the move could lead to price hikes by rivals. The companies have varied the pricing during the pandemic, with wealthy countries paying the most for the shots and the poorest countries the least. Wells Fargo analyst Mohit Bansal said the new pricing range for the vaccine could add around $2.5 billion to $3 billion in annual revenue for Pfizer. "This is much higher than our assumption of $50 per shot," Bansal wrote in a research note. Global vaccine access group the People’s Vaccine Alliance, which has pushed for Pfizer to allow cheaper copies of the vaccine to be made, called the proposed price hike "daylight robbery." The price range announced by Pfizer represented a more than 10,000% markup over what experts have estimated it costs the vaccine makers to produce the shots.
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