Pfizer Stock Price may increase due to the higher Covid Vaccine price. The increase of price will boost the company’s profit.
When its existing agreement with the United States government comes to an end, pharmaceutical company Pfizer (NYSE:PFE) intends to approximately double the price of its Covid vaccine, potentially raising it to as much as $130 per dosage.
According to a story by Reuters on Thursday, which cited statements made by a Pfizer (NYSE:PFE) official named Angela Lukin, those who had either government health insurance or private health insurance will still be eligible to receive the vaccination at no cost.
Pfizer and its German partner BioNTech each get around $30 from the United States for each dosage (BNTX). When the public health emergency in the United States is lifted the following year, the market is likely to undergo significant shifts.
As a result of the declining demand for vaccination doses of the Covid kind, pharmaceutical companies are coming under increasing amounts of pressure to raise the prices at which they sell those doses.
Pfizer would not be the only company to profit from price increases for the vaccine. Competitor Moderna (MRNA) has plans to boost costs to about $60, a number that Jefferies analyst Michael Yee views as more reasonable in order to avoid being perceived as price gouging.
Pfizer Stock Price
In premarket trade, Pfizer (NYSE:PFE) gained 0.7% to reach $43.22 per share. Moderna increased 3.7% to $122.77.
According to Pfizer’s projections, the market for the Covid vaccine will be about equivalent in size to the yearly flu shot market for adults, but the development of the pediatric market will require much more time.
According to what Lukin was quoted as saying, the transition to the private sector for the purchase of the vaccinations won’t occur until the first quarter of 2023 at the earliest. It also depends on whether or not the supplies now held by the government are exhausted.
Featured Image- Megapixl @ Brasilnut
Author Valerie Remorosa 
