Pfizer Estimates 1 Trillion Won Profit from COVID Vaccine in Q1

Pfizer Reports 16 Trillion Won in Q1 Revenue
COVID-19 Vaccine Accounts for One-Quarter of Sales
Vaccine Sales Forecast for This Year at 29 Trillion Won

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] It is estimated that the U.S. pharmaceutical company Pfizer, together with German BioNTech, made nearly 1 trillion won in profits solely from the COVID-19 vaccine they developed.

On the 4th (local time), Pfizer released a press statement announcing that the company's first-quarter revenue was $14.6 billion (approximately 16.4 trillion won). This exceeded the market forecast of $13.4 billion compiled by financial information firm Refinitiv.

Among this, COVID-19 vaccine sales amounted to $3.5 billion (approximately 3.9 trillion won), accounting for one-quarter of total revenue. The New York Times (NYT) reported that the COVID-19 vaccine generated the highest sales among all Pfizer products.

Pfizer raised its annual COVID-19 vaccine sales forecast for this year to $26 billion (approximately 29.2 trillion won). This is a 73% increase from the initial sales forecast announced in early February. Due to the surge in global demand for COVID-19 vaccines, the expected amount was significantly revised upward in just three months.

However, Pfizer did not disclose how much profit it made from selling the COVID-19 vaccine.

The NYT reported that based on the company's past estimated profit margin of the COVID-19 vaccine in the high 20% range, Pfizer's pre-tax profit from the COVID-19 vaccine in the first quarter is expected to approach $900 million (approximately 1 trillion won).

Pfizer explained that, reflecting contracts signed up to mid-last month, it is expected to sell 1.6 billion doses of the COVID-19 vaccine this year.

Additionally, Pfizer announced plans to apply for formal approval of the COVID-19 vaccine from the U.S. Food and Drug Administration (FDA) around the end of this month, according to CNBC. Pfizer and BioNTech received emergency use authorization for this vaccine from the FDA in December last year.

According to CNBC, once final approval is granted by the FDA, Pfizer will be able to directly advertise and sell the vaccine to U.S. consumers and adjust prices.

Furthermore, Pfizer stated it plans to submit an emergency use application for a booster shot (an additional dose to enhance efficacy) that can prevent variant viruses in late July.

Earlier, Pfizer faced criticism after stating its intention to make a profit from selling the vaccine during a U.S. House of Representatives hearing in July last year.

At that time, John Young, Pfizer's Chief Business Officer (CBO), said he intended to make a profit from the vaccine, adding, "Since the current situation is very special, we will reflect this in the vaccine price."

This contrasts with Johnson & Johnson, whose pharmaceutical subsidiary Janssen declared it would not generate profit from the COVID-19 vaccine it developed.

The multinational pharmaceutical company AstraZeneca, which developed a COVID-19 vaccine together with Oxford University in the UK, also announced plans to supply 300 million doses without making a profit, based on an agreement to receive government support in exchange for vaccine development.