As the pace of vaccination is being scaled up worldwide, the vaccine makers are poised to see a sizeable uptick in their revenues by the end of 2021. According to Airnifty Ltd estimates, nine vaccine makers, including the four major players in the vaccine market are pegged to earn a revenue share of nearly $190 billion in an ideal scenario. However, factoring in the logistical hiccups like shortfalls and production constraints the vaccine makers could gain up to a range that tops out at $115 billion.
The four COVID-19 vaccine industry leaders are China and US-based companies, Sinovac Biotech Ltd, Sinopharm Group Co, Pfizer Inc and Moderna Inc. Reportedly, Airnifty Ltd’s CEO Rasmus Bech Hansen said that the vaccine market is novel and it didn’t exist a year ago. As per Hansen, the estimated revenue share of the nine surveyed companies is high as the cost to inoculate a population needs a significant amount of investment.
The researchers have also forecasted that in the case of increasing challenges like delays in deliveries and failures to meet production deadlines could lead to a slump in the gains of the companies to $97 billion. China is playing a significant role in vaccinating the world being the primary vaccine supplier as India grapples with the second wave. China vaccine majors, Sinovac and Sinopharm are poised to earn a revenue share of at least $16 billion.
On the contrary, as per the analysis firm Airnifty Ltd’s estimates the US vaccine giants, Pfizer and Moderna are charging a price of $12-$14.50 and $18-$32 a dose, respectively. This has led the firm to forecast Pfizer’s gains to a range of at least $26 billion this year. Whereas, Moderna could see revenue of about $19 billion.
As per the International Monetary Fund, to inoculate 60% of the global population by 2022, we need investment to the tune of $50 billion. While the estimated revenue gains by these vaccine majors are colossal in nature, so is the need to inoculate the world’s population. As per Anna Bezruki, a Global Health Centre researcher at the Graduate Institute of International and Development, the magnitude of profits seen by the vaccine markers is larger than what it would cost to fully vaccinate the poorest countries in the world.
