Wall Street analysts are forecasting Pfizer and Moderna to rake in $32 billion in sales of their Covid-19 vaccines in 2021 alone.
Aside from the billions in sales, Pfizer and Moderna will receive a tremendous goodwill boost for the role of their Covid-19 vaccines in ending what seems to be the worst pandemic in a century.
Moderna will benefit the most as the young biotech company was relatively unknown to people prior to 2020 but is expected to receive its own authorization from the US Food and Drug Administration (FDA).
Outlook for Covid-19 vaccine developers
Morgan Stanley estimates show that Pfizer is projected to post $19 billion in Covid-19 vaccine revenue in 2021, on top of around $975 million in vaccine revenue this year.
The pharmaceutical giant will share its revenues with German company BioNTech, its partner in the development of the vaccine.
The vaccine development did not really spark a surge in Pfizer's share price because the company is already a large firm but its shares are up 12% this year, a little behind the S&P 500's 13.5% overall gain.
Additionally, BioNTech's US-listed shares have increased by almost 300%, boosting its valuation to nearly $30 billion.
On the other hand, Goldman Sachs projects Moderna to haul in $13.2 billion in Covid-19 vaccine revenue in 2021 while Morgan Stanley forecasts the firm to make $10 billion to $15 billion off Covid-19 vaccine sales in both 2021 and 2022, aside from the billions it expects in booster sales.
Alan Carr, a biotech analyst at Needham, said: "It's epic. It's an historic achievement in drug development. To take a new technology in such a young company and have it ready just in time for the worst pandemic in a century is hard to imagine."
The relatively unknown company is now valued at $62 billion after its shares surged by almost 700% this year and Morgan Stanely attributes half of the company's market value to the vaccine.
FDA approval of Pfizer Covid-19 vaccine
The FDA has approved Pfizer's vaccine for emergency use, according to a letter issued by FDA Chief Scientist Denise Hinton.
President Donald Trump described it as a “medical miracle” in a video tweet. “We’ve delivered a safe and effective vaccine in just 9 months,” Trump said. “This is one of the greatest scientific accomplishments in history.”
According to Dr. Peter Marks, director of the FDA’s Center for Biologics Evaluation and Research, the announcement "holds the promise to alter the course of this pandemic in the United States."
"With science guiding our decision-making, the available safety and effectiveness data support the authorization of the Pfizer-BioNTech COVID-19 Vaccine because the vaccine’s known and potential benefits clearly outweigh its known and potential risks," he said.
With the FDA’s emergency use authorization, the federal government can now distribute doses of the Covid-19 vaccine to 64 states, territories, and major cities across the country. The government will ship 2.9 million doses of the vaccine within 24 hours, followed by an additional 2.9 million doses 21 days later for the second shot, Gen. Gustave Perna, who oversees logistics of the Operation Warp Speed, said Wednesday. People have to take two doses of Pfizer’s vaccine, administered three weeks apart.
