Pfizer and BioNTech Secure $3.2 Billion Agreement with U.S. Government for Supply of Up to 300 Million COVID-19 Vaccine Doses

Intelligent Finance APP learned that COVID-19 vaccine manufacturer Pfizer (PFE.US) and its partner BioNTech (BNTX.US) announced a new COVID-19 vaccine supply agreement with the U.S. government, worth a total of $3.2 billion. The U.S. government is currently making full preparations for a possible increase in the pandemic this fall.

Under the new agreement, the U.S. government will initially receive 105 million doses (30µg, 10µg, and 3µg) of the Pfizer/BioNTech COVID-19 vaccine. According to media reports, the order may include the adult COVID-19 vaccine targeting the Omicron variant. The U.S. FDA previously recommended that the new COVID-19 vaccine targeting Omicron be administered in the fall of this year, but it has not yet officially approved this vaccine.

The agreed doses will be delivered as early as the end of summer 2022 and will continue until the fourth quarter of this year. The U.S. government also has the option to purchase up to an additional 195 million doses, bringing the total potential doses to 300 million.

Pfizer Chairman and CEO Albert Bourla said that as the coronavirus mutates, the new agreement will help ensure that residents across the United States have access to effective COVID-19 vaccines to combat current and future variants.

The Pfizer/BioNTech COVID-19 vaccine is officially approved by the FDA under Emergency Use Authorization (EUA) to prevent COVID-19 caused by SARS-CoV-2 in individuals aged 6 months and above.

Last week, Pfizer/BioNTech announced positive data from their Phase 2/3 clinical trials, demonstrating the safety, tolerability, and immunogenicity of two Omicron-adapted COVID-19 vaccines. Compared to the companies' current COVID-19 vaccines, the latest vaccine showed a significantly higher immune response against Omicron BA.1. Pfizer stated that the vaccine is also effective against BA.4 and BA.5, but overall efficacy is not as strong as it is for BA.1.

These data have been shared with regulatory agencies, including the FDA, and Pfizer plans to apply for emergency use authorization in the U.S. According to media reports, the two companies have already started producing candidate vaccines targeting Omicron at risk, so as to quickly begin delivery after authorization or approval.

In line with the U.S. government's previous commitment to provide free COVID-19 vaccines, eligible U.S. residents will continue to receive COVID-19 vaccines free of charge.

In May this year, pharmaceutical giant Pfizer launched the "Healthier World Agreement," aiming to provide all patented and high-quality drugs and vaccines available in the U.S. or EU to approximately 1.2 billion people across 45 low-income countries on a non-profit basis. This includes 23 drugs and vaccines for treating infectious diseases, certain cancers, as well as rare diseases and inflammatory conditions.