Pfizer is preparing to raise prices for its COVID-19 vaccine, potentially buoying the company’s revenue for years.
Pfizer is one of the leading manufacturers of COVID vaccines, but demand for booster shots has been lower than expected. According to Reuters, the company is looking to make up for that slack demand by raising prices as much as 4x over current prices.
The company plans to charge anywhere between $110 to $130 a dose once the US transitions from subsidized dosages to a commercialized market. At the same time, Pfizer plans to honor existing agreements it has through 2023.
Wells Fargo analyst Mohit Bansal said the price hikes could add billions to Pfizer’s annual revenue.
“This is much higher than our assumption of $50 per shot, and even assuming $80 per shot net price in high-income countries, we see $2 per share upside to our estimates” as a result of the price increase, Bansal wrote in a research note.