Pfizer (NYSE: PFE) Earlier this year the company made a clever decision in its long history. He chose to partner with German Biotech Biotech (Nasdaq: BNTX) On the development and commercialization of its COVID-19 vaccine. And the rest, as they say, is history.
The companies’ BNT162B2 COVID-19 vaccine became the first to win the US, UK and Canadian Emergency Use Authorization (EUA). They tied the deal to supply millions of doses by 2021.
Pretty much everything has been fine so far, but it may not always be that way. Pfizer’s next big COVID vaccine move could be controlled by billions of dollars.
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Cold, hard facts
There is a problem with Pfizer. BNT162b2 requires ultracold storage. How cool is Ultracold? The vaccine must be stored at minus 94 degrees Fahrenheit for extended periods. It’s colder than winter in Antarctica and below what traditional freezers can handle.
Sure, Pfizer and Bioentech have developed a special shipper that uses dry ice to maintain ultracold temperatures. However, some states are choosing to use ModernNo. (Nasdaq: MRNA) mRNA-1273 COVID-19 vaccine in rural areas. However, like the MRNA-1273 BNT162B2, the Messenger RNA Using Technol .G, Modern created a formulation that can be stored in a standard freezer.
However, Pfizer’s problem is not very significant at this time. Wealthy countries BNT1 62B2 has continued to be purchased, including the recent purchase of another 100 million doses by the government. After all, there are only two coronavirus vaccines on the market. And Pfizer’s price tag is more attractive than modern.
But if another COVID-19 vaccine receives EUA, the dynamics could change dramatically. Wealthy nations will turn to Pfizer’s rivals because of the logistical challenges associated with BNT162B2. Poor countries can completely refute the coronavirus vaccine of Pfizer and Bioentech.
Stable-dry luck
If the ultracold storage requirements for the BNT162B2 prove to be a significant competitive disadvantage, Pfizer could potentially make a fortune. The shift of less than 100 million doses sold to another competitor would add more than 2 billion to the low sales of Pfizer and Bioentech.
The good news is that Pfizer has no plans to allow storage requirements for its COVID-19 vaccine to become a roadblock. The major drug manufacturer and its German partner are working hard on resolving the ultracold-storage issue.
In November, Pfizer chief scientific officer Mikael Dulston said in an interview with Business Insider that a lyophilized (freeze-dry) version of the BNT162B2 was being developed. This second version of the vaccine will be in powder form. And it doesn’t need cooling – just standard refrigeration.
The freeze-dry powder version of the BNT162B2 could be available sometime in 2021, Dolston said. If that’s true, it should be enough soon enough to get billions of dollars out of Pfizer’s hands.
Big Wild Card
Exactly how much money Pfizer will make from the BNT 162B2 in the long run depends on the wild card that is completely out of the company’s control. At this stage no one knows for sure how long any COVID-19 vaccine will protect against infection by coronavirus.
If the defense period lasts for several years, Pfizer will experience a huge influx of cash next year, followed by a sharp decline in 2022. However, if the COVID-19 vaccination is taken annually or more, the BNT162B2 – especially the freeze-dried version – will generate potential billions of dollars in potential revenue for Pfizer in the long run.
In that scenario, this large pharma stock will almost certainly grow very large over the next decade.
