The United States government announced it will pay $1.95 billion for Pfizer (NYSE:PFE) to produce and deliver 100 million doses of its COVID-19 vaccine candidate in the U.S. if it proves safe and effective in humans.
Under the agreement, Washington can acquire an additional 500 million doses, the Department of Health and Human Services added. The vaccine candidate is being jointly developed by German biotech firm BioNTech and U.S.-based Pfizer.
If the potential vaccine proves safe and effective in a large phase three trial and receives emergency authorization or licensure, HHS said Pfizer will begin to deliver doses to locations across the U.S. at the government’s direction.
The vaccine would then be made available to Americans "at no cost," HHS said.
"Through Operation Warp Speed, we are assembling a portfolio of vaccines to increase the odds that the American people will have at least one safe, effective vaccine as soon as the end of this year," HHS Secretary Alex Azar was quoted as saying.
"Depending on success in clinical trials, today’s agreement will enable the delivery of approximately 100 million doses of vaccine being developed by Pfizer and BioNTech (NASDAQ:BNTX)."
The Pfizer/BioNTech vaccine development program is evaluating at least four experimental vaccines, each of which represents a unique combination of messenger RNA (mRNA) format and target antigen.
On July 1, Pfizer and BioNTech announced preliminary data from BNT162b1, the most advanced of the four mRNA formulations.
PFE shares gained $1.04, or 2.8%, to $37.72.
