Pfizer CEO Sees Annual COVID-19 Vaccine Preferable to Booster Shots

Last week, Albert Bourla, the CEO of global healthcare provider Pfizer Inc. (PFE), said in an interview on Saturday that an annual vaccine shot against Coronavirus will be much better compared to repeated booster shots, according to Reuters.

Shares of PFE closed down 2.3% at $52.79 on January 21. Over the past year, the stock has gained 47.1% due to the growing demand for its COVID-19 vaccine.  

Annual Shots Instead of Frequent Boosters

Amid the growing Omicron cases, several countries have started booster shots for vaccinated individuals and have even shortened the gap between the primary shot and booster.

Similarly, the U.S. Food and Drug Administration (FDA) shortened the gap between the primary shots of the Pfizer-BioNTech SE (BNTX) COVID-19 vaccine and the booster to five months from the earlier gap of six months.

The duo’s vaccine claims to be effective against the severity of the Omicron virus and its related hospitalization, but less effective in preventing its high transmission capability.

In an interview with Israel’s N12 News, Bourla was asked about his view on the repeated use of the booster shots at intervals of four to five months. The CEO replied that he sees an annual vaccine dose much better and simpler for individuals instead of regular booster shots.

Bourla also stated that Pfizer’s newly redesigned vaccine to fight Omicron would be ready for approval and mass production by March this year.

On Friday, the U.S. Centers for Disease Control and Prevention (CDC) suggested that a third dose of Moderna Inc.’s (MRNA) mRNA vaccine, which provides 90% efficacy against hospitalization, is important to fight the Omicron variant.

Similarly, a preliminary study published by Israel’s Sheba Medical Center found that a fourth vaccine dose increased the antibodies to higher levels compared to the third dose, but was not enough to fend off Omicron. However, they still suggest a second booster dose for risk groups.

CEO Comments

Bourla said, “Once a year – it is easier to convince people to do it. It is easier for people to remember… So, from a public health perspective, it is an ideal situation. We are looking to see if we can create a vaccine that covers Omicron and doesn’t forget the other variants and that could be a solution.”

Analysts’ View

Overall, the stock has a Moderate Buy consensus rating based on 9 Buys and 10 Holds. The average Pfizer price target of $59.83 implies 16.24% upside potential to current levels. Pfizer’s earnings release date for the fourth quarter of fiscal 2021 is scheduled for February 8.

Blogger Opinions

TipRanks data shows that financial blogger opinions are 94% Bullish on PFE, compared to the healthcare stocks sector average of 71%.

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