Feels like deja vu... It's not. The FDA granted full approval for Pfizer and partner BioNTech's Covid vaccine. Thanks to emergency use authorization, 201M people in the US have gotten at least one vax shot. Pfizer's is the first vax to gain FDA-approval — it was also the first to get authorized for emergency use in December. Pfizer shares spiked 4% on the news. Moderna, whose application for full approval is under review, also closed the day up 7%.
The shot is hot… While 73% of US adults are vaxxed, vaccine demand remains strong globally. Less than 2% of people in Africa are vaxxed, and many countries are still clamoring for vaccines. Meanwhile, vaccine demand is surging in states hardest hit by the Delta variant. Now, FDA-approval could boost vaccine demand even more:
- Less vax hesitation: Many health officials believe full approval could encourage vax-hesitant people to get the shot. In a recent poll, 30% of unvaxed people said they’d be more likely to get a shot if it were fully approved.
- More vax mandates: The full stamp of FDA approval will make it easier for businesses and other orgs to require shots. United Airlines, the Defense Department, and New York City schools are already mandating it for employees.
Covid vaccines are here to stay… and so is vax cash. Pfizer expects a whopping $33.5B in Covid vax sales this year, and that forecast came before it got full approval. Analysts expect that next year's Covid vax sales will significantly surpass 2021 levels, and remain strong for years. Pfizer’s 2022 Covid vax sales are expected to be 70% higher than this year’s. And don't forget the booster shots: health officials recommend that Americans who got Pfizer or Moderna's shot series get a booster eight months after their second shot.