Since the UK cleared the use of Pfizer and BioNTech’s COVID-19 vaccine, the US pharmaceutical giant has taken center stage in the fight against COVID-19. According to data presented by StockApps.com, the market capitalization of the US multinational pharmaceutical company has jumped by more than $ 26 billion since the UK announced the use of its vaccine.
Yet, as one of the world’s largest pharmaceutical companies, Pfizer had witnessed a sharp decline in its market capitalization amid the COVID-19 crisis. In December 2019, the combined value of shares of the US pharmaceutical giant was $ 216.8 billion, data from Yahoo Finance revealed. After the March stock market crash, that figure fell to $ 181.2 billion.
The negative trend continued into the second quarter of the year, with the pharmaceuticals market capitalization reaching $ 181.6 billion in June. Although Pfizer’s share price edged up in the third quarter, with market capitalization hitting nearly $ 204 billion in September, it was still $ 12 billion below December levels.
This half-fig-half-reason trend faded when Pfizer became the first pharmaceutical company to officially release the vaccine for emergency use in the UK. The Pfizer share price jumped in a matter of days. A final analysis of the vaccine’s Phase 3 trial showed it to be 95% effective in preventing infection, and the UK has ordered 40 million doses of the vaccine, enough to immunize 20 million people.
On November 25, the market capitalization of the US pharmaceutical company was $ 203 billion. Over the next five days, that number rose to $ 213 billion and continued to rise. As of December 2, it stood at $ 226.7 billion, a 4.5% year-over-year increase. MacroTrends data shows that value continued to grow, reaching $ 229.2 billion this week.
Despite becoming the first company whose vaccine was cleared for emergency use, Pfizer suffered the biggest financial blow among the three biggest pharmaceutical giants. In 2019, Pfizer generated $ 51.75 billion in total revenue, with fourth-quarter sales contributing about $ 12.7 billion, up from $ 14 billion in the same quarter a year ago. However, in the first few months of 2020, sales of the US pharmaceutical giant fell 7% to $ 12.2 billion.
The negative trend continued in the second quarter, with revenue falling to $ 11.8 billion, a 9% year-on-year decline. Third-quarter sales fell $ 500 million, or 4%, due to COVID-19, mainly due to lower demand for certain products in China and disruptions in patient wellness visits to United States, which had a negative impact on the prescribing patterns of specific products. Statistics show that Pfizer’s nine-month 2020 revenue was $ 35.9 billion, down $ 3 billion year-over-year.