Pfizer Inc and BioNTech SE have inked an agreement to supply 200 million additional doses of their COVID-19 vaccine to 27 European Union (EU) member states.
Furthermore, the European Commission (EC) has an option to buy an additional supply of 100 million doses as part of the agreement. This new agreement takes the total COVID-19 vaccine supply to the EU to 500 million doses. The additional 200 million doses are expected to be delivered this year, with 75 million doses to be supplied in the second quarter of 2021.
Pfizer’s (PFE) CEO Albert Bourla said, “We recognize that more people must be vaccinated as soon as possible to help defeat this virus and control the global pandemic. We are working relentlessly to support the further roll-out of vaccination campaigns in Europe and worldwide by expanding manufacturing capacity.”
Bourla added, “With this new agreement with the European Commission, we now expect to deliver enough doses to vaccinate at least 250 million Europeans before the end of the year.”
The COVID-19 vaccine is based on BioNTech’s (BNTX) proprietary messenger Ribonucleic acid (mRNA) technology. Pfizer and BioNTech are aiming to manufacture around two billion COVID-19 doses globally by the end of this year. (See Pfizer stock analysis on TipRanks)
Earlier this month, Mizuho Securities analyst Vamil Divan reiterated a Buy rating and a price target of $42 on PFE stock.
Divan wrote in a note to investors following the company’s earnings results, “FY 2021 revenue guidance was provided for the first time at $59.4Bn-$61.4Bn, with $15Bn in COVID-19 vaccine sales expected in 2021 based primarily on contracts the company has already signed with various governments.”
“The company also is guiding to adjusted income before taxes margins in the high 20% range for the vaccine, which we believe should help Consensus models get to a more realistic place on what the vaccine will contribute to Pfizer’s top and bottom line this year,” Divan added.
The rest of the Street is sidelined on PFE with a Hold consensus rating. That’s based on 2 analysts recommending a Buy and 7 analysts suggesting a Hold. The average analyst price target of $39.89 implies 15% upside potential to current levels.
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