Pfizer's revenue will rise due to higher prices for COVID vaccines

Analysts say Pfizer's plan to increase the price of a COVID-19 vaccine is now four times beyond Wall Street expectations. Despite weakened demand for the new booster vaccine, the plan will boost shot revenues.

On Thursday, Pfizer said that once the United States enters the commercial market in 2023, the price of the vaccine will be between $110 and $130 per dose.

Mohita Banzal, an analyst at Wells Fargo, said a new pricing range for a COVID-19 vaccine could increase the drug company's revenue by $2.5 billion to $3 billion. In a research note, Banzal points out that the price of the vaccine is much higher than analysts initially thought. The value of the share, in their opinion, could be $50, even at a net price of $80 per share. In high-income countries, according to Banzal, there is growth potential of $2 per share compared to analysts' estimates.

The public announcement of a new pricing range for Pfizer's vaccine could give Moderna and Novavax the green light to raise their prices as well.

SVB Securities analyst David Reisinger said in a research note that analysts expect Moderna to adapt to this signal. He also added that Pfizer/BioNTech, Moderna and Novavax may also increase the price of their vaccines in the near future.