Pfizer Inc. (NYSE: PFE) and BioNTech SE (Nasdaq: BNTX) have inked a fresh COVID-19 vaccine supply deal with the US government to aid the ongoing battle against the pandemic. As per the agreement, the pharmaceutical giant will deliver 105 million doses of the COVID-19 vaccine to the US government. The doses (30 µg, 10 µg and 3 µg) include vaccines that have been modified for treating adults infected by the Omicron strain of the Coronavirus. Following the announcement, the stock of Pfizer gained 2.93% or $1.49 to close at $52.43.
The New York-based Pfizer clarified that the inclusion of a modified vaccine for treating the Omicron strain of Coronavirus is subject to approval by the US Food and Drug Administration (FDA). Pfizer intends to deliver the vaccines between late summer and the fourth quarter of this year.
The aforesaid pharmaceutical companies will be paid $3.20 billion after delivering the initial lot of 105 million doses to the US government. Notably, the agreement allows the US government to buy an additional 195 million doses, if necessary, taking the cumulative order to 300 million doses.
Commenting on the agreement, Albert Bourla, Chairman and CEO OF Pfizer, said, “This latest deal will help guarantee that people all around the nation have access to drugs that have the potential to give immunity against present and future strains of the virus as it continues to mutate.”
Bourla further stated that “To shield individuals of all ages from COVID-19, vaccination has been and will continue to be of the utmost importance.” We are and will continue to be delighted with our good working relationship with the United States government in assisting to combat this epidemic, as well as the continued effect that vaccine efforts are having in the United States and elsewhere on the globe.”
Sean Marett, Chief Business and Chief Commercial Officer of BioNTech opined, “This deal will offer more dosages for citizens of the United States, which will aid in the effort to deal with the subsequent wave of COVID-19. We feel that it is necessary to resolve the fast-spreading Omicron variety, therefore, it will also contain a vaccination that has been modified for the Omicron strain, as long as regulatory authorization is obtained. We are grateful that the United States administration has kept working with us toward our common objective of bringing an end to this pandemic.”
Crucial data related to two vaccines, modified to treat Omicron in particular, was published on June 25 by Pfizer and BioNTech. The data, tabled with the FDA and other regulators, confirmed the tolerability, safety, and immunogenicity of the vaccine candidates. Furthermore, Pfizer also intends to apply for an Emergency Use Authorization (EUA) in the US.
Interestingly, with the aim of quickly starting deliveries after receipt of approval by regulators and also the Centers for Disease Control and Prevention (CDC), both Pfizer and BioNTech have taken a calculated risk and have started manufacturing the aforesaid vaccine modified for treating Omicron strain of the Coronavirus.
In line with the US government’s commitment to providing unhindered access to the COVID-19 vaccine, qualifying US residents will be offered the jab free of cost.
The COVID-19 vaccine developed by Pfizer and BioNTech is based on the proprietary mRNA technology owned by the latter. BioNTech owns the MAH (Marketing Authorization Holder) rights in the US, the UK, Canada, the EU, and other countries. Additionally, BioNTech owns emergency use authorizations or similar rights in the US and other countries.
The news of a fresh order for COVID-19 vaccines from the government of the US is expected to keep the stock of Pfizer slightly bullish in the short term.
Technically, the stock of Pfizer has successfully broken the ascending triangle. The base of the triangle acts as solid support for the stock. The next resistance is anticipated at around 57. Additionally, the stock is trading above its 50-day moving average, while the ultimate oscillator is showing a positive reading. Therefore, we anticipate the stock to remain in an uptrend in the short term.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
