Pfizer and Moderna Prepare to Deliver Third COVID-19 Shot

White House Urges a COVID-19 Booster

Pfizer (PFE) and Moderna (MRNA) are poised to earn billions of dollars in revenue now that a third booster shot for COVID-19 is being recommended. That is prompting Wall Street to raise its sales estimates for the two drug companies, adding billions of dollars to their sales forecasts through 2022.

For Pfizer and COVID-19 vaccine partner BioNTech (BNTX), sales estimates by some Wall Street firms have increased by double digits. The same is true of Moderna. Some Wall Street firms have raised their sales estimates by 25% for the company. The new forecasts come as the Biden administration is calling for all vaccinated adults in the US to get a third booster shot eight months after their last Pfizer or Moderna vaccine.

Pfizer and Moderna Ramp Up Production

While Wall Street is just starting to revise its sales forecasts, Pfizer and Moderna have been preparing to roll out COVID-19 vaccine boosters for some time. The companies have already increased their production levels, which means there will be enough supply for a third dose. In July Pfizer increased its sales target for COVID-19 vaccines by 30%.

Meanwhile Moderna, which did not have a product on the market prior to the pandemic, expects to generate $20 billion in sales from the agreements it inked for 2021. That does not include a third shot or orders for 2022. In the first six months of this year it had $6.3 billion in sales compared to $75 million a year ago.

Pfizer and Moderna Raise Vaccine Prices

Pfizer and Moderna are charging higher prices for this round of shots.

The US government inked a deal with Pfizer and BioNTech in July to purchase 200 million doses at $24 per dose. That is higher than the $19.50 the US government previously paid. Moderna is charging the government $15 for the first 100 million doses and $16.50 per dose for the following 400 million shots.

Prices the companies charge in the European Union and elsewhere also increased. Both drugmakers said prices vary based on the country’s ability to pay. While not everyone may agree with Pfizer and Moderna’s vaccine pricing, one thing is for sure: sales are booming for the two companies and that trend is not likely to slow for some time.

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ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.

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