Pfizer Inc. (NYSE: PFE) and BioNTech S.E. (NASDAQ: BNTX) announced another progression in the U.S. government’s Operation Warp Speed program. The goal is to begin delivering 300 million doses of the vaccine for COVID-19 in 2021, but in the meantime, these companies will get a nice payoff.
Under the agreement, the U.S. government will receive 100 million doses of BNT162, the COVID-19 vaccine candidate jointly developed by Pfizer and BioNTech, after Pfizer successfully manufactures and obtains approval or emergency use authorization from U.S. Food and Drug Administration (FDA).
Accordingly, the U.S. government will pay the companies $1.95 billion upon the receipt of the first 100 million doses, following FDA authorization or approval. The U.S. government also can acquire up to an additional 500 million doses.
Also, Americans will receive the vaccine for free consistent with U.S. government’s commitment for free access for COVID-19 vaccines.
If the ongoing studies are successful, Pfizer and BioNTech expect to see regulatory approval as early as October 2020. The companies currently expect to manufacture globally up to 100 million doses by the end of 2020 and potentially more than 1.3 billion doses by the end of 2021.
Pfizer and BioNTech are at the front of the pack in terms of the development of a vaccine. The companies recently released new preliminary data from this German study supports and expands on the recently disclosed early results from the corresponding U.S. trial with BNT162b1.
Separately, BioNTech announced that it is raising over $400 million in a secondary offering. This is after shares have risen over 160% this year so far.
Pfizer stock traded up about 5% to $38.51 on Wednesday, in a 52-week range of $27.88 to $43.17. The consensus price target of $40.04.
BioNTech stock was up about 9%, at $99.50 in a 52-week range of $12.52 to $105.00. The consensus price target is $55.39.