The European Union has signed a deal with Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) to purchase 300 million doses of the companys' promising coronavirus vaccine. Deliveries of the vaccine should start later this year, according to the pharmacuetical companies.
The Pfizer/BioNTech vaccine garnered a lot of attention once the company released early test results showing 90% effectiveness against the coronavirus. The two firms have set out to secure approval from the Food and Drug Administration for distribution.
The European Union, drawn by the promising results, signed a deal with the two companies for a massive order of 300 million doses. While the deal has been penned, there is currently no timeline for distributing the vaccine in the E.U., nor is there any idea of when the vaccine will receive approval from European regulators for distribution.
European Health Commissioner Stella Kyriakides spoke to the BBC of the deal, stating, "The agreement means we are a step closer to what we set out to do - to have a broad and solid vaccine portfolio. [The vaccine] has to receive authorization from the European Medicines Agency. A number of steps need to be followed before we will actually be able to have a timeline."
As part of the deal, the E.U. will pay a reduced price for the vaccine, as a result of E.U. members providing financial support for the development of the vaccine. The price of $19.50 per dose for 200 million doses is a better deal compared to the one signed by the United States, which is priced the same per dose but for half the number of doses.
Despite the promising vaccine and the considerable deal with the E.U., Pfizer and BioNTech ended trading last week down. Pfizer ended the week 7.9% down from the beginning of the week, while BioNTech ended 7.4% down.