Drugmakers Pfizer Inc, BioNTech, and Moderna Inc stand to make billions of dollars from COVID-19 booster doses. Analysts and healthcare investors predict this lucrative market could soon rival the $6 billion flu vaccine market for years to come.
Faced with the rapidly spreading Delta variant, Chile, Germany, Israel and other governments will administer booster doses to the elderly or people with weak immune systems.
Reuters reported the U.S. Food and Drug Administration recently approved a Pfizer and Moderna vaccine booster shot for those with immunodeficiencies, on Aug. 12.
Pfizer, BioNTech, and Moderna recorded almost $60 billion in vaccine sales during 2020 and so far in 2021. Current agreements cover the first two doses of their vaccines plus billions more in prospective booster shots for wealthier nations.
Experts expect about $6.6 billion in revenue for the Pfizer/BioNTech shot and $7.6 billion for Moderna during 2023. BL understands this will primarily come from booster shot sales.
Analysts believe the annual market will eventually settle at $5 billion or more, as a growing number of drugmakers compete for a slice of the market.
Flu shot-like model
If CCP Virus boosters are required on a regular basis in the general population, market value could grow to similar levels seen across existing flu vaccines–about 600 million doses a year. Seqirus Commercial Operations Vice President for North America Dave Ross revealed four companies dominate the U.S. flu market, which accounts for almost half of global sales.
Atlantic Equities analyst Steve Chesney confirmed flu vaccination rates in affluent countries have stabilized at around half the population. COVID boosters are likely follow a similar trend if they are universally licensed.
U.S. government data shows flu vaccines cost between $18 and $25 per dose. Competition has kept price rises in control, with manufacturers only raising prices by 4 to 5 percent during 2021.
Pfizer and Moderna might initially have greater pricing power for booster shots than their competitors. Pfizer charged $19.50 per dose in the United States and 19.50 Euros across the European Union. However, the company recently lifted prices by 24 and 25 percent respectively in subsequent supply agreements.
AstraZeneca Plc and Johnson & Johnson are gathering more information on vaccine boosters. Although these vaccines still need regulatory approval, Novavax, Curevac, and Sanofi’s shots could also potentially be used as boosters.
“A lot of these firms are not even in the market yet,” Morningstar analyst Damien Conover said according to Reuters. “I think within a year’s time, all these companies will have booster strategies.”
Mizuho Securities analyst Vamil Divan expects there will be at least five companies in the COVID-19 booster market within just a few years.
BL understands the Chinese Communist Party (CCP) virus is the root cause of COVID-19.