The flu season will bring business for drug companies that sell influenza vaccines. This year, rising Covid
infections from the less deadly omicron sub-variants could help the vaccine market. Though uptake for
the Covid vaccine is slow, it may accelerate.
Mortalities from Covid are rising. People who are susceptible to this virus will consider a vaccine. To
maximize operating profits, Pfizer has a pricing strategy. They intend to quadruple the price of the
vaccine. Executive Angela Lukin said that it will charge between $110 to $130 per dose. This is through
government-led procurement.
The U.S. government is paying just $30 per dose for the vaccine.
Other drug companies will follow Pfizer’s price hike. Moderna (MRNA) could match Pfizer and
BioNTech’s (BNTX) prices.
The U.S. government might mandate Covid vaccines. This increases the potential sales this fall. At higher
prices, people will re-evaluate the value of taking the virus. For example, people who are susceptible to
complications would take the vaccine at any price.
Long-Covid happens when symptoms persist weeks and months after infection. If cases of long-covid
rise, people will decide that the vaccine is worth taking.
Investors do not have any cash flow-positive rich stocks to buy. Drug stocks like Pfizer, BioNTech, and
Moderna are the ones to consider.
