Pfizer said in July it expects revenue from its COVID-19 vaccine to reach $33.5 billion this year, an estimate that could change depending on the impact of boosters or the possible expansion of shots to elementary school children. The COVID-19 vaccines have already done much better than their predecessors. All of that could make the vaccines a major recurring source of revenue. That makes it easy to invite people back for boosters.ĭrugmakers are also developing COVID-19 shots that target certain variants of the virus, and say people might need annual shots like the ones they receive for the flu. Jonas noted that the drugstores may not face competition from mass vaccination clinics this time around, and the chains are diligent about collecting customer contact information. Drugstore chains CVS Health and Walgreens could bring in more than $800 million each in revenue, according to Jeff Jonas, a portfolio manager with Gabelli Funds. WBB Securities CEO Steve Brozak said the booster shots will represent “almost pure profit” compared with the initial doses.ĭrugmakers aren’t the only businesses that could see a windfall from delivering boosters. J&J and Europe’s AstraZeneca have said they don’t intend to profit from their COVID-19 vaccines during the pandemic.įor Pfizer and Moderna, the boosters could be more profitable than the original doses because they won’t come with the research and development costs the companies incurred to get the vaccines on the market in the first place. That would translate to a profit of around $7 billion next year just from boosters, based on Andersen’s sales prediction. Potential vaccine profits are harder to estimate for Pfizer, but company executives have said they expect their pre-tax adjusted profit margin from the vaccine to be in the “high 20s” as a percentage of revenue. In Britain, which plans to offer boosters to everyone over 50 and other vulnerable people, an expert panel has recommended that Pfizer’s shot be the primary choice, with Moderna as the alternative.Īndersen expects Moderna, which has no other products on the market, to generate a roughly $13 billion profit next year from all COVID-19 vaccine sales if boosters are broadly authorized.
Those companies also may gain business from people who got other vaccines initially. But Morningstar analyst Karen Andersen expects boosters alone to bring in about $26 billion in global sales next year for Pfizer and BioNTech and around $14 billion for Moderna if they are endorsed for nearly all Americans. No one knows yet how many people will get the extra shots. Johnson & Johnson is third with about 14 million people. They have inoculated about 99 million and 68 million people, respectively. have come from Pfizer, which developed its shot with Germany’s BioNTech, and Moderna. Most of the vaccinations so far in the U.S. The average forecast among analysts for Moderna’s 2022 revenue has jumped 35% since President Joe Biden laid out his booster plan in mid-August. “The opportunity quite frankly is reflective of the billions of people around the world who would need a vaccination and a boost,” Jefferies analyst Michael Yee said.
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And that, plus continued growth in initial vaccinations, could mean a huge gain in sales and profits for Pfizer and Moderna in particular. health officials expect boosters will be more broadly authorized in the coming weeks or months. Still, the crisis is constantly evolving, and some top U.S. regulators have rejected the across-the-board approach and instead said third shots of Pfizer’s vaccine should go to people who are 65 and older and certain others at high risk from COVID-19. The Biden administration last month announced plans to give boosters to nearly everybody. How much the manufacturers stand to gain depends on how big the rollout proves to be. moves toward dispensing COVID-19 booster shots to shore up Americans’ protection against the virus. Billions more in profits are at stake for some vaccine makers as the U.S.
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