Pfizer Inc. is a top U.S. government contractor in the biopharmaceutical industry. The company has collaborated across the healthcare innovation system to streamline its research advancements and revolutionize the fight against viruses. During the first four months of 2022, Pfizer reported revenues of $32 billion and another $22 billion from its COVID-related products, Comirnaty and Paxlovid, respectively. Know the top Pfizer government contracts here!
Table of Contents
1. U.S. Government’s Purchase Order of 500 Million Pfizer Vaccines, $10 Billion
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- Year: 2020
- Contracting activity: U.S. Army
- Contract duration: 2 years (ended in April 2022)
In December 2020, the U.S. Army awarded an estimated $10 billion contract to Pfizer. The agreement required Pfizer to deliver 500 million doses of the Pfizer vaccine, valued at approximately $20 per dose. The delivery period ended in April 2022.
2. U.S. Government’s Order of the Oral Antiviral Drug Paxlovid, $5.3 Billion
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In November 2021, Pfizer secured an estimated $5.3 billion contract award from the U.S. government to supply 10 million courses of the Pfizer COVID-19 antiviral oral drug. The oral drug, a combination of ritonavir and a COVID-19 antiviral agent, was seen as a potential weapon in fighting against the virus because it could be taken as an early at-home treatment during high-risk cases, reducing deaths and hospital admissions by 89%.
The Paxlovid pill’s price was 25% lower and more effective than Merck’s molnupiravir. Paxlovid got filed for U.S. authorization, allowing the continued manufacturing of 180,00 to 50 million treatment courses before 2022 ends.
3. U.S. Army Orders Paxlovid COVID-19 Treatment Pills, $4.8 Billion
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- Year: 2022
- Contracting activity: U.S. Army’s Contracting Command
- Contract type: Modification
- Contract duration: 6 months
In September 2022, Pfizer received an estimated $4.8 billion modification contract from the U.S. Army to supply Paxlovid COVID-19 treatment pills to the U.S. Army’s Contracting Command in Maryland. The order period is through March 2023.
4. U.S. Army’s COVID-19 Vaccine Order for International Donation, $3.5 Billion
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- Year: 2021
- Contracting activity: U.S. Army Contracting Command
- Contract type: Firm-fixed-price
- Contract duration: 1 year (until December 2022)
In July 2021, the U.S. Army awarded a $3.5 billion contract to Pfizer. Under the contract, the Defense Department received and donated 500 million doses of the COVID-19 vaccine worldwide. The performance period is until December 2022. Sixty other countries have received 100 million doses. Afghanistan and Zambia were one of the first to receive the vaccines, and Indonesia received the most doses (8 million doses). At the end of August, the U.S. started shipping half a billion doses of the Pfizer-BioNTech COVID-19 vaccine to 100 low-income countries.
5. U.S. Government’s Purchase Order of the Omicron-Adapted Vaccine, $3.2 Billion
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In June 2022, the partnership of BioNTech and Pfizer closed an estimated $3.2 billion deal with the U.S. government to deliver 105 million doses of their COVID-19 vaccine, Comirnaty. The government also has the option to collect an additional 195 million doses, bringing the potential total number of doses to 300 million. The new deal also implies that every dose’s average price increased from $19.50 to $30, which is a 50% increase compared to what the government paid in its initial contract.
Pending regulatory authorization, the deal includes the Omicron-adapted vaccine candidates’ retooled supplies, which is vital for addressing the viral Omicron variant. The vaccine manufacturers started developing the vaccines for the Omicron variant before becoming dominant last winter.
The vaccines were delivered to communities, partners, state and local health departments, federally qualified health centers, health care providers, and pharmacies.
6. U.S. Government’s Contract Modification of Additional 300 Million Comirnaty Doses, $2 Billion
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- Year: 2022
- Contracting activity: U.S. Army Contracting Command
- Contract type: Modification
- Contract duration: 8 months (ended in September 2022)
In January 2022, Pfizer was awarded an estimated $2 billion modification contract from the U.S. Army. Under the contract, Pfizer will supply an additional 300 million doses of Comirnaty. These were to be distributed to low and middle-income countries internationally.
7. U.S. Government’s Production of Paxlovid Oral Antiviral Therapeutic Treatments, $442 Million
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- Year: 2022
- Contracting Activity: U.S. Army Contracting Command
- Contract type: Modification contract
- Contract duration: 1 year
In January 2022, Pfizer won a modification contract with an estimated amount of $442 million. Under the contract, Pfizer was obligated to supply 835,000 Paxlovid oral treatments for distribution and administration. The expected completion date is on March 2023.
About Pfizer
Pfizer Inc. is one the largest biopharmaceutical companies in the United States, founded in 1849. The company’s products and services range from vaccines and drugs to cancer, heart, and diabetes treatments. Pfizer has remarkably responded to the global pandemic, helping it rank higher among the Fortune 500 companies.
