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, making the shot one of the
drugmaker's top-selling products and potentially a steady source of
revenue.
"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.
The company said it expects total revenue this year of between
$59.4 billion and $61.4 billion.
In the fourth quarter, the Covid-19 vaccine contributed $154
million of the company's $11.7 billion in sales. The U.S. Food and
Drug Administration authorized the shot -- the first to be cleared
for use in the U.S. -- on Dec. 11. Revenue in the quarter from
Pfizer's vaccines overall rose 17% to $2 billion.
Pfizer's sales outlook for its Covid-19 vaccine, which it
co-developed with BioNTech SE, opens a window on the business
opportunity for drugmakers responding to the coronavirus pandemic.
Companies including Gilead Sciences Inc., which sells an antiviral,
have reported sales bumps from coronavirus treatments.
It is unclear, however, how long Pfizer, which splits Covid-19
vaccine sales with BioNTech, could sustain the revenue at such a
high level, according to analysts.
Other companies' vaccine candidates could be authorized in the
coming months, eating into Pfizer's sales. Sales could also be hurt
if a variant emerges that evades the company's vaccine.
The Covid-19 vaccine's longer-term revenue prospects, Mr. Bourla
said, depend on whether people will need booster shots to stay
protected against the virus.
Pfizer and BioNTech are working on a booster shot to provide
additional protection against variants.
Pfizer on Tuesday reported a fourth-quarter profit of $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
posted an adjusted profit of 42 cents a share; analysts were
expecting 50 cents a share.
For 2021, the company expects an adjusted profit of $3.10 to
$3.20 a share, an increase from $3 to $3.10 a share.
Mr. Bourla said in an interview that the company raised its
revenue projections for the year amid the rollout of AstraZeneca
PLC's vaccine in Europe, study results from Johnson & Johnson's
vaccine and insight into manufacturing capabilities for those
shots.
The company's shares were down 2.3% in afternoon trading on the
New York Stock Exchange.
Pfizer and BioNTech have said recent lab results suggested new
coronavirus variants found in the U.K. and in South Africa would
have only a small impact on their 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.
Pfizer will study whether booster shots given either six months
or a year after the second dose could provide additional
protection, including against variants, said Pfizer
research-and-development chief, Mikael Dolsten. Results could come
as early as summer, he said.
A third shot might generate sufficient antibodies to protect
against the current variants Dr. Dolsten said.
Pfizer is also preparing, he said, a tweaked vaccine for either
the strains found in Brazil or South Africa that could be tested if
needed, though Pfizer hasn't decided on whether to start a
trial.
Mr. Bourla said the goal would be to test a new vaccine in 100
days.
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 world-wide this year.
Authorities in roughly 50 countries have cleared use of the
shots.
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 said Tuesday it has supplied 29 million doses to the
U.S. and 65 million doses globally.
Pfizer struck agreements with rivals such as Novartis AG to help
manufacture doses during the pandemic. It has also been upgrading
manufacturing plants to meet demand, and doubling the number of
doses produced in each batch, Chief Financial Officer Frank
D'Amelio said in an interview.
"When we started, this equipment didn't exist," Mr. D'Amelio
said. "We literally helped design the equipment with the people
that make the equipment."
Pfizer's quarterly revenue of $11.7 billion was up 12% from
$10.45 billion in the year-earlier quarter. Analysts surveyed by
FactSet were expecting revenue of $11.48 billion in the latest
period.
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 15:21 ET (20:21 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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