Pfizer Inc. PFE, the first company to obtain emergency use authorization for a coronavirus vaccine, offered a preview Tuesday into the vaccine's revenue potential in the current fiscal year.
Pfizer's COVID-19 vaccine was co-developed with German partner BioNTech SE – ADR BNTX.
What Happened: The revenue from BNT162b2, the duo's vaccine against SARS-CoV-2, will total around $15 billion in 2021, Pfizer said in its fourth-quarter earnings release.
The revenue guidance is based on the doses that are expected to be delivered in 2021 under existing contracts, and may be adjusted in the future as additional contracts are executed, the company said.
The adjusted income before tax margin for the vaccine is expected to fall in the high-20s as a percentage of revenue, Pfizer said.
Pfizer said it decided to break down the numbers due to the significant impact BNT162b2 will likely have on its overall results in 2021.
In the fourth quarter, BNT162b2 fetched revenue of $154 million for the company.
Excluding BNT162b2 revenue, Pfizer guided to 2021 revenue of $44.4 billion to $44.6 billion and adjusted EPS of $2.50-$2.60.
Including vaccine revenue, Pfizer guided to at $59.4 billion to $61.4 billion in revenue and adjusted EPS at $3.10-$3.20.
This implies that BNT162b2 would account for roughly one-fourth of Pfizer's total revenue.
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Why It's Important: Pfizer is competing against Moderna Inc MRNA, which has also received emergency use authorization for its mRNA vaccine, and a few others, including Novavax, Inc. NVAX, Johnson & Johnson JNJ and AstraZeneca plc AZN, all of which are moving closer to obtaining emergency use authorization for vaccine candidates.
Although Pfizer and Moderna's vaccine efficacy are higher, vaccine economics and logistical advantages could be key for determining uptake.
With Pfizer relying notably on its vaccine, it remains to be seen if it can benefit from its first-mover advantage and best-in-class efficacy profile.
PFE Price Action: Pfizer shares were down 3.21% at $34.65 at last check Tuesday.
Related Link: The Week Ahead In Biotech: Merck, Pfizer In Earnings Mix, Plus Adamas, Mallinckrodt FDA Decisions, IPOs And More
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