Pfizer is hiking its Paxlovid price to $1,390 for a five-day course — more than double what the U.S. government paid for the Covid treatment. Pfizer stock edged lower Thursday.
The move comes as Pfizer prepares to transition Paxlovid to the commercial market in the U.S. The list price is before rebates and discounts from insurance companies and pharmacy benefit managers. But it's also more than double the $529 per course the federal government paid for the antiviral pill, according to CNBC.
In statement emailed to Investor's Business Daily, Pfizer said it priced Paxlovid "based on the value it provides to patients, providers and health care systems due to its important role in helping reduce Covid-19-related hospitalizations and deaths."
Pfizer noted the list price doesn't necessarily reflect the price a patient will pay.
On today's stock market, Pfizer stock dipped a fraction to 31.19.
Pfizer Stock Rises On Cost-Cutting Measures
Earlier this week, Pfizer slashed about $9 billion from its full-year guidance due to lower demand for its BioNTech-partnered Covid vaccine, Comirnaty, and Paxlovid. Shares of BioNTech and vaccine rivals Modernaand Novavax plummeted. But Pfizer stock rose on enthusiasm for its plans to cut costs.
Evercore ISI analyst Umer Raffat expected Pfizer to increase its Paxlovid price ahead of the 2024 launch in the U.S. market. The company did the same when it began charging private insurers for Comirnaty. But he expected a higher commercial pricing plan of three to five times the government cost.
Still, the move to the commercial market could bolster Paxlovid sales, according to Pfizer stock analysts. Paxlovid has been shown to reduce the risk of hospitalization and death from Covid, especially among vulnerable patients with comorbidities like diabetes, health conditions or compromised immune systems.
Pfizer is also planning to provide Paxlovid for free to federally insured patients — including those covered by Medicare and Medicaid — through 2024 and for uninsured or underinsured patients through 2028. It will also provide 1 million doses for the strategic national stockpile.
Analysts following Pfizer stock expect a slight uptick in sales following the Paxlovid price update next year. This year, they call for Paxlovid sales to plummet 79% to $4.03 billion. Next year, analysts surveyed by FactSet expect the antiviral to generate $5.51 billion in sales, climbing 37%. Through 2028, analysts expect Paxlovid sales to moderate around $4.5 billion to $5.2 billion.
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