Benzinga - by Vandana Singh, Benzinga Editor.
Pfizer Inc (NYSE:PFE) has reportedly secured a major contract with the U.K. to supply millions of doses of its Abrysvo respiratory syncytial virus (RSV) vaccine, edging out local pharmaceutical giant GSK Plc (NYSE:GSK).
This agreement includes over 3.5 million doses for older adults and more than 1.4 million doses for pregnant mothers in England and Northern Ireland over the next two years.
Related: GSK’s Competitive Edge, Surpasses Pfizer in Respiratory Syncytial Virus Vaccine Sales.
The decision revealed through a redacted contract, represents a significant blow to GSK, which is in fierce competition with Pfizer to dominate the emerging RSV vaccine market.
Pfizer’s Abrysvo is approved for use in pregnant women, to protect their unborn babies and the elderly. GSK’s Arexvy vaccine is only approved for older adults.
Both vaccines have demonstrated effectiveness in preventing RSV infection and reducing hospitalizations.
GSK’s Arexvy showed a 94.1% efficacy against severe disease after one season, compared to Pfizer’s 88.9%.
Bloomberg notes that over two seasons Pfizer’s vaccine demonstrated a slightly higher combined efficacy of 81.5% versus GSK’s 78.8%.
The Bloomberg report added that the U.K. government is not providing a formal statement due to pre-election restrictions, however, the vaccine deliveries are scheduled to begin in July, aimed at protecting the elderly and newborns before the cold season.
The Department of Health and Social Care has not clarified why Pfizer’s tender prevailed over GSK’s. The tender criteria evaluated both price and efficacy, with points awarded for protection across two RSV seasons and deductions made for each additional £1 in cost.
While pricing details in the U.K. tender remain redacted, in the U.S., GSK’s vaccine is priced at $280, while Pfizer’s Abrysvo costs $295.
GSK’s Arexvy generated over 1 billion pounds ($1.3 billion) in 2023 sales, compared to $890 million for Pfizer’s Abrysvo.
Price Action: PFE shares are up 0.92% at $28, and GSK shares are up 0.79% at $40.80 at the last check on Monday.
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