GILD Gilead Sciences Inc

By Jared S. Hopkins and Matt Grossman 

Pfizer Inc. said it expects its Covid-19 vaccine to generate about $15 billion in sales this year, indicating the business opportunity created by protecting people from the pandemic.

The vaccine contributed $154 million of the company's $11.7 billion in sales during the fourth quarter, helping lift the company's overall revenue from all vaccines to $2 billion, a 17% year-over-year increase.

Pfizer projects the vaccine's impact will be considerable this year, becoming one of the company's top-selling products. In 2021, Pfizer expects full-year revenue of between $59.4 billion and $61.4 billion, and adjusted earnings of between $3.10 and $3.20 a share.

"Based on what we've seen so far, we believe it is increasingly likely that a durable Covid-19 vaccine revenue stream, like it happens in flu, is a potential outcome," Pfizer Chief Executive Albert Bourla told analysts Tuesday.

Pfizer's fourth-quarter profit was $594 million, or 10 cents a share, compared with a year-earlier loss of $337 million, or 6 cents a share. Excluding one-time items, Pfizer reported an adjusted profit of 42 cents a share. Analysts had forecast an adjusted profit of 50 cents a share.

Pfizer said it expects full-year revenue of $59.4 billion to $61.4 billion, and an adjusted profit of $3.10 to $3.20 a share.

Shares were down 2% in trading midday on the New York Stock Exchange.

Pfizer's Covid-19 vaccine sales forecast suggests the business opportunity for drugmakers responding to the pandemic. Companies including Gilead Sciences Inc., which sells an antiviral, have reported sales bumps from coronavirus treatments.

It is unclear, however, how long Pfizer could sustain its Covid-19 vaccine revenues at such a high level, according to analysts. New Covid-19 vaccines from other companies could be authorized in the coming months, eating into Pfizer's sales.

Sales could also be hurt if a variant emerges that evades Pfizer's vaccine, co-developed with BioNTech SE.

The companies have said recent lab results suggested the new variants found in the U.K. and in South Africa would have only a small impact on the shot's effectiveness, though the study did find antibodies generated by the vaccine were slightly less effective against mutations in the variant identified in South Africa.

Other vaccine makers, including Johnson & Johnson and Moderna Inc., have said they are working on a booster shot or modified vaccine after testing found their vaccines weren't as effective against the South Africa variant, in particular.

Still, Pfizer has said it expects global demand for vaccinations against Covid-19 to last at least several years beyond 2022. Pfizer plans to produce two billion doses globally world-wide this year.

Pfizer has agreed to provide the U.S. government 200 million doses by the end of July for nearly $4 billion, or $19.50 per dose. Pfizer now expects to complete delivery by the end of May because regulators agreed the company can count six doses per vial, up from five.

Pfizer has been upgrading manufacturing facilities to meet demand. It also struck agreements with rivals such as Novartis AG to help manufacture doses during the pandemic.

The Pfizer-BioNTech vaccine was authorized by the U.S. Food and Drug Administration in December. Authorities in some 50 other countries have also cleared use of the shots.

Pfizer's quarterly revenue was up 12% from $10.45 billion reported in the same quarter a year earlier. Analysts surveyed by FactSet were expecting revenue of $11.48 billion.

Revenue for its cancer drugs grew by nearly one-quarter to more than $3 billion, as sales grew for products such as breast cancer treatment Ibrance. It also saw sales growth in rare disease drug Vyndaqel and blood thinner Eliquis.

During the quarter, Pfizer completed a deal to spin off its Upjohn unit in a combination with Mylan NV, forming a new generic-drug maker called Viatris Inc.

Write to Jared S. Hopkins at jared.hopkins@wsj.com and Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

February 02, 2021 12:30 ET (17:30 GMT)

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