Pfizer and German partner BioNTech have won a second order with the US government for the supply of an additional 100 million doses of their COVID-19 vaccine.
The US government will pay $1.95 billion for the additional 100 million vaccine doses. Pfizer (PFE) said that the current agreement takes the total number of vaccine doses to be supplied to the US to 200 million. The companies expect to deliver the 200 million doses, which will be supplied from production facilities in the US, by July 31 next year.
“With these 100 million additional doses, the United States will be able to protect more individuals and hopefully end this devastating pandemic more quickly,” said Pfizer CEO Albert Bourla. “We look forward to continuing our work with the U.S. government and healthcare providers around the country.”
Under the terms of the second order, Pfizer and BioNTech (BNTX) have committed to deliver at least 70 million of the additional vaccine doses by June 30, 2021, with the remaining 30 million doses to be delivered no later than July 31, 2021.
Furthermore, the US government also has an option to buy up to an additional 400 million doses of the Pfizer-BioNTech vaccine.
The COVID-19 vaccine has not been approved or licensed by the US Food and Drug Administration (FDA), but it has been authorized for emergency use to prevent COVID-19 for the treatment of individuals aged 16 years and older.
Additionally, the European Commission (EC) this week granted a conditional marketing authorization (CMA) to use Pfizer-BioNTech’s BNT162b2 vaccine for immunization to prevent the coronavirus disease. The two companies have an agreement to supply European Union member states with 200 million vaccine doses in 2020 and 2021, with the option for up to 100 million additional doses.
Following the FDA authorization, Canaccord Genuity analyst Arlinda Lee raised BNTX stock to a Street-high price target of $130 (29% upside potential) from $115 and reiterated a Buy rating, citing multiple supply agreements for at least 570 million doses of BNT162 and 11 oncology candidates progressing in the clinic stage.
“In our view, the speed to instigate the COVID program and bring a candidate to clinic underscores BNTX’s scientific expertise and the rapidity and efficiency of its platform,” Lee wrote in a note to investors.
The rest of the Street is cautiously optimistic on the stock with a Moderate Buy analyst consensus, which is divided between 3 Buys and 4 Holds. (See BioNTech stock analysis on TipRanks).
With BioNTech shares up a whopping 197% so far this year, analysts now forecast another 19% upside potential lies ahead over the coming year, setting the average price target at $119.60.
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