Pfizer lifts revenue forecast following on vaccine sales

—Pfizer reported better than expected adjusted earnings per share of $1.07 on revenue of $19.0 billion.
—Pfizer now sees 2021 revenues of approximately $33.5 billion from its Covid jab, reflecting 2.1 billion doses expected to be delivered this year based on signed contracts as of mid-July.

Pfizer has had an impressive quarter and the company’s efforts to vaccinate the global population against Covid-19 look like they could bear fruit for years to come. Worldwide demand for vaccines against the virus is expected to continue and the generally positive attitude towards Pfizer’s vaccine compared to the AstraZeneca jab puts the company in a strong position to benefit going forward.

"The company is testing its vaccine on younger children – it’s currently available in the US for those over 12 years of age – which could see Pfizer sell millions more doses in the coming months if it’s proven to be effective," said Samuel Indyk, senior analyst at uk.Investing.com.

"Furthermore, booster shots heading into the winter months may also be necessary to protect those most vulnerable, potentially providing further revenue growth in the future. Pfizer shares have slightly underperformed the broader market over the last year but are still higher by around 14% year-to-date. The shares look set to benefit in the future, not only from the vaccine revenue but also as healthcare services return to normal.

"Many hospital procedures and treatments were put on hold during the peak of the pandemic as hospitals across the globe were overwhelmed with Covid patients, but as the vaccine lowers the hospitalization rate, the usual procedures can resume.

"Evidence that this is happening is seen in Pfizer’s results with revenue from the oncology unit rising by 19%. This should give further impetus to the share price going forward given Pfizer’s focus on therapies such as immunology, oncology and rare diseases."