Pfizer and BioNTech Set to Receive a Sweet Payoff for COVID-19 Vaccines

By Chris Lange Updated Oct 16, 10:37AM EDT · Published Jul 22, 10:04AM EDT

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Pfizer and BioNTech Set to Receive a Sweet Payoff for COVID-19 Vaccines — © solvod / iStock

Pfizer Inc. (NYSE: PFE | PFE Price Prediction) and BioNTech S.E. (NASDAQ: BNTX) announced another progression in the U.S. government’s Operation Warp Speed program. The goal is to begin delivering 300 million doses of the vaccine for COVID-19 in 2021, but in the meantime, these companies will get a nice payoff.

Under the agreement, the U.S. government will receive 100 million doses of BNT162, the COVID-19 vaccine candidate jointly developed by Pfizer and BioNTech, after Pfizer successfully manufactures and obtains approval or emergency use authorization from U.S. Food and Drug Administration (FDA).

Accordingly, the U.S. government will pay the companies $1.95 billion upon the receipt of the first 100 million doses, following FDA authorization or approval. The U.S. government also can acquire up to an additional 500 million doses.

Also, Americans will receive the vaccine for free consistent with U.S. government’s commitment for free access for COVID-19 vaccines.

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If the ongoing studies are successful, Pfizer and BioNTech expect to see regulatory approval as early as October 2020. The companies currently expect to manufacture globally up to 100 million doses by the end of 2020 and potentially more than 1.3 billion doses by the end of 2021.

Pfizer and BioNTech are at the front of the pack in terms of the development of a vaccine. The companies recently released new preliminary data from this German study supports and expands on the recently disclosed early results from the corresponding U.S. trial with BNT162b1.

Separately, BioNTech announced that it is raising over $400 million in a secondary offering. This is after shares have risen over 160% this year so far.

Pfizer stock traded up about 5% to $38.51 on Wednesday, in a 52-week range of $27.88 to $43.17. The consensus price target of $40.04.

BioNTech stock was up about 9%, at $99.50 in a 52-week range of $12.52 to $105.00. The consensus price target is $55.39.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.