The $70B ques­tion: What’s Pfiz­er go­ing to do with all that Covid vac­cine cash?

Pfiz­er’s lat­est deal a few days ago to sell Eu­rope 1.8 bil­lion dos­es of BioN­Tech’s mR­NA vac­cine — 900 mil­lion guar­an­teed and 900 mil­lion op­tioned — has added a new lay­er of fi­nan­cial frost­ing on a large cake it’s been bak­ing.

Ron­ny Gal at Bern­stein sat down to do some back-of-the-en­ve­lope fig­ur­ing on the deal, fac­tor­ing in their ear­li­er price point of 15.5 eu­ros per dose, and cal­cu­lat­ed that the phar­ma gi­ant has locked in a wind­fall of $20 bil­lion in free cash flow for it­self through next year — based on ex­pect­ed sales of $70 bil­lion.

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