Pfizer's attempt to as much as quadruple its current U.S. prices for its COVID-19 vaccines going forward could spur revenues for years, analysts said.
The drugmaker, which developed and sells the vaccine with Germany's BioNTech said on Thursday evening that it is targeting a range of $110 to $130 a dose for the vaccine once the United States moves to a commercial market next year.
Outside the United States, Pfizer said it already has contracts with governments in many developed markets that extend through 2023 with prices that have already been set.
Wells Fargo analyst Mohit Bansal said the new pricing range could add around $2.5 billion to $3 billion in annual revenue for the shots.
"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" from the new prices, he wrote in a research note.
The public announcement of the new price range could also be a green light for competitors Moderna Inc and Novavax Inc to strive for prices in the same range.
"We expect Moderna to adapt to this signal, and expect the mRNA duopolists, along with Novavax, to continue pricing in a similar range for the foreseeable future," SVB Securities David Risinger said in a research note.
(Reporting by Michael Erman; Editing by Andrea Ricci)