Wall Street analysts estimate that pharma manufacturers Pfizer and Moderna will have $ 32 billion in revenue from the Covid-19 vaccine next year alone, CNBC reports.
According to Morgan Stanley, Pfizer will have $ 19 billion in vaccine revenue in 2021. Pfizer will share its revenue with BioNTech, the German company with which it collaborated to develop the vaccine.
Pfizer expects to raise another $ 9.3 billion in 2022 and 2023 as the world continues to be vaccinated, Morgan Stanley estimated.
The discovery of the vaccine did not trigger a rise in the price of Pfizer shares, as the drug manufacturer is already a huge company. Pfizer shares rose just 12% this year, following the S&P 500’s 13.5% total gain.
Instead, BioNTech’s partner is expanding: its shares listed in the US have increased by almost 300%, pushing the valuation of the German biotechnology company to almost 30 billion dollars.
Meanwhile, Moderna’s Covid-19 vaccine has already turned a virtually unknown company into a $ 62 billion giant. Shares have risen nearly 700% this year and Morgan Stanley estimates that about half of the company’s market value is attached to the vaccine.
Modern could earn $ 13.2 billion from the Covid-19 vaccine next year, according to Goldman Sachs. Morgan Stanley estimated that the rising price of Moderna shares shows that investors expect the company to collect between 10 and 15 billion dollars from sales of Covid-19 vaccine in both 2021 and 2022.
These are staggering amounts for a company that generated sales of only $ 60 million in 2019 and has never authorized a product before.
“It’s epic,” said Alan Carr, a biotech analyst at Needham. “It’s a historic achievement in drug development. Taking a new technology into such a young company and preparing it in time for the worst pandemic in a century is hard to imagine.”
Now the big debate on Wall Street is how long Covid-19 vaccines will bring revenue to companies. It is not yet known how long the treatments will provide protection and how often revaccination will be needed.
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