More On: Big Pharma
Pharmaceutical firms in the United States are projected to earn more money from COVID-19 vaccines in the third quarter than they did in the first half of the year, and this money is likely to rise.
Pfizer Inc. PFE and Moderna Inc. MRNA both reported $17.2 billion in vaccine sales in the first half of the year, but both are anticipated to disclose higher third-quarter totals in the coming week, totaling $18 billion. After Johnson & Johnson JNJ announced more than $500 million in third-quarter revenues last week, nearly double the $264 million it earned in the first half, Pfizer is set to report profits Tuesday morning, followed by Moderna on Thursday morning.
Pfizer made $11.3 billion in revenue from its COVID-19 vaccine, now known as Comirnaty, in the first half of the year, and analysts expect sales of $11.86 billion in the third quarter. However, those figures may be exaggerated since some purchases may be pushed into the fourth quarter, when booster doses and the newly approved vaccination for younger children begin to arrive in arms.
Pfizer may struggle to generate more than $10 billion in COVID-19 vaccine sales in the third quarter, according to Mizuho analysts, with the missing revenue likely to be shifted to the fourth quarter instead.
“Comirnaty sales have driven remarkable upside to Pfizer numbers in 1Q21 and 2Q21, but for 3Q21 we believe consensus estimates are currently too high based on orders Pfizer has publicly announced and government websites that track actual COVID vaccine shipments,” wrote the analysts, who have a neutral rating and $43 price target on Pfizer stock. “Our FY21 Comirnaty sales estimates are unchanged, however, as we shift revenues from 3Q21 to 4Q21, while awaiting further clarity on order trends and uptake on the conference call.”
After collecting $5.93 billion in the first half, Moderna is likely to record vaccination sales of $6.17 billion in the third quarter. The vaccine is more financially crucial to Moderna because it is the business's first licensed product, but the company faces a potential delay in its own child-targeted product after a setback over the weekend.
Analysts estimate more than $21 billion in fourth-quarter sales from Moderna and Pfizer alone, so any predictions or color from CEOs on fourth-quarter and 2022 expectations would be crucial. With firms rolling out boosters and dosages for younger patients while still striving to protect people globally from the pandemic, production capacity will be a fascinating issue.
As the height of earnings season continues, 167 S&P 500 SPX businesses are anticipated to report this week, a similar amount to last week. Here's what you can anticipate in the coming week.