American pharmaceutical giant Pfizer (PFE) has said that it plans to quadruple the price of its
COVID-19 vaccine to between $110 and $130 per dose once the U.S. government's purchase
program expires.
Pfizer said the vaccine, which is currently provided for free to U.S. citizens through the
government, said it is planning the price increase to help it manage weak demand for COVID-19
vaccines coming out of the pandemic, which means that it needs to hike prices to meet revenue
forecasts.
The U.S. government currently pays about $30 U.S. per dose to Pfizer for its COVID-19 shot. In
2023, the market is expected to move to private insurance coverage after the current U.S.
government purchase program ends.
Pfizer added that, going forward, it expects the COVID-19 vaccine market to be about the size
of the annual market for flu shots.
The rollout of updated COVID-19 booster shots that target the original strain of the virus along
with the Omicron strain has lagged last year's vaccination rates. To date, about 15 million
people in the U.S. have received a COVID-19 booster shot.
Pfizer said it anticipates purchasing of the vaccine to transfer to the private sector during the
first quarter of next year (2023).
Pfizer’s stock is down 24% this year and trading at $42.91 U.S. per share.
