Bankinter | Pfizer and the EU have agreed to reduce the number of doses to be delivered by an undisclosed number and, to delay the validity of the contract to 2026. The reason is the drop in demand for vaccines and booster doses and that several countries have destroyed vaccines after their expiration date. The initial contract is dated May 2021 and contemplated the acquisition of 900M doses and an option for another 900M doses until the end of 2023. It is estimated that only 450M doses have been acquired and the EU has not exercised the option.
Assessment: Negative news for Pfizer. There is a rumor that it may have been agreed to cut the doses pending delivery by 30%, i.e. by 150M doses, which would put the contract at 750M doses vs. 900M doses initially. There are no details on the compensation Pfizer will receive for the contract reduction.
