Pfizer COVID profits – General public does not have to pay anything to get vaccinated, but companies like Pfizer are not doing charity work. These companies are charging the federal government of the United States with hefty bills for vaccines, antiviral pills, and other services.
Centers for Disease Control and prevention, with the fund provided by the federal government, is driving the whole vaccination and other COVID services free of cost in the United States. Companies like Pfizer are charging the full amount and earning hefty profits.
At some level, indeed, we cannot ask these companies to not gain any profits from the vaccine of COVID, But a lot of people do not agree with this, and they believe that companies like Pfizer are doing everything in their hands to increase their profit margins.
Latest Quarterly Results
Pfizer recently announced its result, and it looks stunning. As the company, coronavirus vaccine comirnaty Brought around $13 billion in sales in the first quarter of 2022.
You might be expecting $13 billion to be the peak, but the company is trying everything to expand the market for preventive shots. Their profits have grown by more than 61%.
The latest results of the company clearly show that products related to COVID-19 have been dominating in the company, and they are trying everything to expand their limits.
The company brought around $25.7 billion in revenue in the first quarter, and the COVID-related products brought around $14.7 billion, which is 60% of revenue.
Overall the company is not seeing much growth in the non-covid segment. In just a year, companies have tripled their vaccine sales from $4.9 billion to $14.9 million, which is not a surprise.
Their COVID vaccine is among the most successful products ever launched by the company. Year on year basis, or quarter on quarter basis, Pfizer is not seeing much growth as compared to products related to COVID.
The company is expecting the sale COVID related products to grow more as they have recently launched the COVID pill, Which is supposed to bring the exact same revenue or more than the vaccine.
Vision of Pfizer
Along with the quarterly results, the company also talked about its upcoming plans. It was more refreshing than a fresh announcement.
The representative of the company said that they are going to submit June data on the effectiveness of a smaller three short combination of their vaccine for children under age 5.
If they get the approval from the United States Food and Drug Administration, children in the United States below the age of 5 will also be eligible to get vaccinated with the Pfizer vaccine.
It was a huge announcement as they would be eligible to vaccinate every American Regardless of their age. It will open new Windows opportunities to generate more revenue.
Apart from that, the company also wants to improve the sales of its COVID pill named Paxlovid. It was launched back in December 2021, but in just one quarter, it has brought around $1.5 billion in total revenue.
The company has beat every Wall Street expectation of $24.1 billion with its $25.66 billion revenue, and they are also expecting to replicate it in upcoming quarters.
Currently, the vaccine for COVID-19 has been dominating the vast majority of revenue and profits, which is going to stay still for upcoming quarters, but they are expecting Paxlovid to be the second most popular product.
The chairman and CEO of the company say that we are seeing strong signs of increasing demand for Paxlovid.
The health experts and doctors have started suggesting Paxlovid to all the patients suffering from mild to moderate symptoms of COVID-19, which is a huge plus sign for the overall growth of the company.
View of Wall Street Experts
As soon as the company started announcing its latest quarterly results, a lot of Wall Street experts seemed to be worried as they are not saying much growth in non-related products which are more sustainable.
The company has been posting the best quarterly results of its life, but Wall Street experts do not seem to enjoy these results. A lot of experts are under the fear that one day these results are going to decline like it is increasing.
The nosedive of both the results is not going to be very helpful for the stock price of the company. Revenue and profits from COVID products are surely going to go down, and there will be nothing that can support the stock price of the company.
For short-term movements, anyone can play for two three quarters, but Pfizer is not good for investment purposes at this moment. Unless COVID shots become a yearly business, the growth is not going to sustain, and experts are more concerned about nosedive rather than belly landing.
The company is strongly dependent on the COVID profits, and it is going to hurt investors in upcoming quarters when they will see a drop of 10s of billions of dollars in revenue and profit.
For the next two or three quarters, Pfizer stock can give good movement, and you can make a profit, but overall do not expect it to become multi-bagger as it is saying huge numbers of revenues and profit.
No profit from COVID Products?
From the very first day, a huge group of people is not happy with the companies manufacturing and developing vaccines for COVID-19.
The whole charade of primary doses and booster doses of the COVID vaccine has been really painful for a lot of people. They directly raise questions on the effectiveness of vaccines as People are still getting infected with COVID-19 even if they receive two primary doses and booster shots of the COVID-19 vaccine.
If four shots of vaccine are not able to save a person from getting infected, then what is the effectiveness Of the vaccine? The federal government has been investing billions of dollars in vaccines that are going in the vein.
Back in 2020, most of the vaccine manufacturer companies like Johnson and Johnson, modern, and AstraZeneca received federal funding to develop vaccines for COVID-19 but Pfizer. The company rejected the federal funding as they believed the federal funding was going to do nothing but it will restrict them from developing the vaccine.
Johnson and Johnson and AstraZeneca pledged to provide millions of vaccine doses at no profit, and they both received federal funding. Even back then, a huge number of congressmen were concerned regarding the prices and revenue rise of the COVID vaccine.
Now the people are asking companies like Pfizer not to generate any revenue from COVID products. The representatives of the company have not responded to these requests, and no one is expecting the same.
Pfizer has recently announced its commitment to making vaccines more accessible globally; they have already shipped 430 million doses to 91 countries or territories. The company is yet to announce how many doses have gone to poor countries, but these 430 million doses are not going to generate much profit.
As of February, the company has roughly delivered more than 960,000 Doses of Pfizer vaccine to middle and low-income countries. It is not enough to vaccinate every person in poor countries, but it is an initiative, and we’ll see huge jumps in numbers in the upcoming months.
Takeaways
Pfizer recently announced the quarterly results of its first quarter of 2022, and it looks promising. The company overall generated around $25 billion, and it was mostly dominated by the products related to COVID.
Companies have brought around 13 billion yen from the sale of COVID-19 products, including vaccines and pills. As for the Wall Street experts, The results are promising, but they are more concerned about the sustainability of these numbers.
These are not sustainable numbers, and they are going to come down in upcoming quarters. It could be a nosedive and very bad for the overall growth of the stock of the company. Even with the highest number of growth, the stock of the company is not moving enough.
It could become the stock of movement for a few quarters but do not expect it to become a multi-bagger in upcoming quarters.
At the same time, the company has also started shipping millions of dollars of COVID vaccine to poor and middle countries, which is going to further impact the earnings.
How much is the federal government of the United States paying Pfizer for each vaccine dose?
As per the multiple media reports, The federal government of the United States is paying around $19.50 for each Vaccine short of Pfizer, while Israel has agreed to pay $30 per dose. At the same time, the company is not disclosing its prices in the countries of the European Union. As compared to any other vaccine, the Pfizer COVID vaccine is less expensive when it comes to conditions like shingles. These vaccines can cost around $400, while the vaccine for COVID-19 costs just under $20. Even with the four shorts, it is not going to cost more than the vaccine for shingles.
How many profits is Pfizer earning from the COVID vaccine?
The company has not disclosed the exact figure they are earning from the vaccine of COVID-19, but they clearly mentioned that the company is earning in the high 20s of the overall revenue figure. The company generated around $14 billion out of vaccines for COVID-19.