Pfizer and Moderna Will Earn Billions from Vaccine

December 14, 2020
538 Views

Pfizer Inc. (NYSE: PFE) and Moderna Inc. (NASDAQ: MRNA) are two companies expected to lead the global market in Coronavirus vaccines. Pfizer’s novel vaccine was approved for emergency use by the FDA over the weekend, and shipments to the states are already underway.

Moderna has its own vaccine based on different biotechnology, which is expected to be approved for emergency use within the coming weeks. Both companies have displayed high levels of efficacy and safety in clinical trials. As two leaders in the global vaccine race, both are set to generate billions in revenue in 2021.

At Least $19B in Revenue Expected for Pfizer

Pfizer developed its vaccine in collaboration with BioNTech (NASDAQ: BNTX). The German company will take half of the revenue from the expected $19 billion that Pfizer is expected to generate in 2021.

Total revenue for the Coronavirus vaccine this year is expected to be $975 million. Pfizer’s vaccine has been approved in the United Kingdom and the United States. Other countries will likely follow.

In 2022 and 2023, Pfizer expects to generate almost $10 billion in revenue as vaccinations for the Coronavirus continue. Initially, doses will be offered to at-risk groups like medical workers, elderly care staff, and people living in nursing homes.

Pfizer typically generates more than $50 billion in revenue each fiscal year. The Coronavirus vaccine will be a welcomed addition to the company’s drug portfolio, but it’s not a ‘make-or-break’ product for Pfizer.

Coronavirus Vaccine is More important to Moderna

Moderna developed a vaccine using its unique mRNA technology. The Moderna vaccine essentially reprograms cells to build immunity. Moderna’s vaccine is easy to transport and remains effective for up to six months when stored at -4°F.

Unlike Pfizer, Moderna doesn’t have a strong household name and it only generated $60.21 million in revenue last year. The Coronavirus injection. is much more important for this company. It will be a catalyst that gets Moderna’s brand recognized. Perhaps more importantly, Moderna is expected to generate $13.2 billion from the vaccine in 2021, followed by up to $15 billion in 2022 and 2023.

Moderna’s success with an mRNA injection. will help it to continue researching and developing its disease-treatments and vaccines for other conditions. Investors looking for the company most likely to grow significantly in the next ten years should look to Moderna rather than Pfizer.

Two Pharmaceutical Investment Options

For the stock with potential, Moderna is a promising pick. For historical growth and stability, Pfizer is one of the best options on the market. Whichever way investors lean, there’s no doubt that both of these stocks will be among the most compelling in the pharmaceutical industry in 2021.

You may be interested

Job Hiring is Picking Up as Employers and Consumers Gain Confidence
Economy
549 views
Economy
549 views

Job Hiring is Picking Up as Employers and Consumers Gain Confidence

Lamont J - March 29, 2021

The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…

Fed Could Maintain 0% Interest Rate Until 2024
Economy
490 views
Economy
490 views

Fed Could Maintain 0% Interest Rate Until 2024

Adam R - March 26, 2021

The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…

Supply Constraints Could Slow the Home Market
Economy
555 views
Economy
555 views

Supply Constraints Could Slow the Home Market

Becky H - March 25, 2021

Low inventory has been a constant in the home market for more than a year. The supply of existing and…