Pfizer Announces $1.95 Billion Deal On Coronavirus Vaccine

GROTON, CT — The federal government announced that it will pay $1.95 billion to Groton-based Pfizer and partner BioNtech to secure the first 100 million doses of an experimental COVID-19 vaccine.

The payment will be made if the Food and Drug Administration authorizes the vaccine for use. Part of the agreement would give the federal government the option to buy up to an additional 500 million doses. The agreement comes as part of the government’s Operation Warp Speed program that aims to secure 300 million doses of coronavirus vaccines by 2021.

Americans will receive the vaccine for free.

“Expanding Operation Warp Speed’s diverse portfolio by adding a vaccine from Pfizer and BioNTech increases the odds that we will have a safe, effective vaccine as soon as the end of this year,” said federal Health and Human Services Secretary Alex Azar. “Depending on success in clinical trials, today’s agreement will enable the delivery of approximately 100 million doses of this vaccine to the American people.”

Gov. Ned Lamont thanked Pfizer for their work and said that it gives hope that science will lead the way out of the pandemic. Connecticut is home to several life science and biotechnology companies.

“You’re reminded by this amazing announcement how important Pfizer and the rest of our life sciences are going forward,” he said.

The two companies expect to seek emergency use authorization from the FDA or other regulatory approval by October 2020 if ongoing clinical trials are successful. Up to 100 million doses could be produced globally by the end of 2020 and potentially more than 1.3 billion doses can be produced by the end of 2021, according to a statement from both companies.

Pfizer and BioNTech worked together on the vaccine. BioNTech used its proprietary mRNA technology to develop the vaccine and Pfizer lended its manufacturing capabilities and global vaccine development expertise. The experimental mRNA process is being used by a few companies to develop vaccine candidates at an unprecedented pace.

Both companies are evaluating at least four experimental vaccines and the agreement with the federal government is for the most advanced of the candidates.

News of the deal was somewhat a surprise since Pfizer didn’t receive funding for research from the federal government, unlike other pharmaceutical companies including Moderna, Johnson & Johnson and AstraZeneca, according to the New York Times.

“We’ve been committed to making the impossible possible by working tirelessly to develop and produce in record time a safe and effective vaccine to help bring an end to this global health crisis,” said Dr. Albert Bourla, Pfizer chairman and CEO. “We made the early decision to begin clinical work and large-scale manufacturing at our own risk to ensure that product would be available immediately if our clinical trials prove successful and an Emergency Use Authorization is granted

Early data shows that the vaccine produces antibodies against the coronavirus at or above levels produced by people who are infected with the actual virus, according to a joint statement from both companies.

The vaccine is currently undergoing clinical trials.