Pfizer plans to nearly quadruple the price of the Covid vaccine to $110 – $130 per dose for recipients 12 and older. Pfizer said in an email to Investor’s Business Daily that the transition to commercialization will occur as early as the first quarter of 2023. Today, the US government pays about $30 per dose of Biotechnology (BNTX) – partner.
Manny Forohar, an analyst at SVB Securities, expects Moderna to follow Pfizer’s lead.
“Assuming Moderna’s pricing is a rational monopoly, this significantly improves the company’s ability to meet 2023 revenue guidance,” Forouhr said in a report.
On the stock market todayAnd the flex stock It jumped 8.4% to 128.32. Pfizer stock It also rose 4.8% to 44.97. BioNTech stock rose 11.2% to 131.64. Novafax (NVAX), which recently secured US clearance for a Covid dose and first batch, shares surged 12.6% to 19.34.
MRNA Inventory: Low Covid Shot Demand
The price increase will help plug sluggish demand for Covid vaccines and the outlook for 2023. Analysts polled by FactSet expect revenue of $16.4 billion from Pfizer’s shot and $8.4 billion from Moderna. Those forecasts call for sharp declines of 49% and 60%, respectively, compared to the 2022 watched.
Foroohar of SVB Securities raised his price target for MRNA’s stock to 101 from 74. He also upgraded the stock to underperforming market rating. However, it’s not entirely sold on Moderna’s efforts with its updated flu vaccine and Merck’s partnership on a dedicated cancer vaccine.
“We are standing on the sidelines and waiting for a more attractive entry point either on the long or short side,” he said.
Moderna representatives were unable to immediately comment on the company’s pricing plans.
New challenges in the commercial market
Pfizer’s updated pricing comes as the US health emergency ends. The company expects that most commercial insurance patients will continue to pay anything out of their pocket for Covid shots. Pfizer also says it plans to provide a free vaccine to eligible patients who are uninsured through the assistance program.
Pfizer notes that moving to the commercial market involves challenges of distributing the vaccine through multiple channels and payers, rather than being done strictly through government. This is also expected to pose a challenge to the mRNA stock.
The company also expects its customers to demand more single-dose vials. This will limit the amount of unused vaccine that expires. But single-dose vials are three times more expensive to make and more expensive to transport than multi-dose vials.
However, despite Moderna and Pfizer’s stock jump, both stocks remain under pressure. MRNA stock reached its highest level recently in August, but has fallen since then. Pfizer stock has trended lower since July.
Follow Allison Gatlin on Twitter at Tweet embed.
You may also like: