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Are the days of Covid blockbuster drugs over?

Investors are still betting on new drugs even as sales of established treatments and vaccines tail off
May 30, 2022

To say that the pandemic was profitable for pharmaceutical companies is something of an understatement. Pfizer (US:PFE) sold $36.7bn (£29bn) worth of its Covid-19 vaccine last year, making up 45 per cent of its total annual revenue, while its profit doubled on 2020 to $21bn. Meanwhile, AstraZeneca (AZN) generated the first sales of its jab on a for-profit basis in the fourth quarter of 2021, for which it reported record-high revenues. It had previously promised to sell it at cost until the pandemic was over.

Almost two-thirds of the global population has now received at least one dose of a Covid-19 vaccine, and an increasing number of therapies are available for people who do contract the virus. This means the demand for new Covid vaccines and treatments is shrinking all the time.

 

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