BioNTech and Pfizer bag $1.95 billion US deal for SARS-CoV-2 vaccine candidate

Adding to a major supply deal with the UK earlier this week, today Pfizer (NYSE: PFE) and German partner BioNTech (Nasdaq: BNTX) announced an agreement with the US Department of Health and Human Services and the Department of Defense to meet the government’s Operation Warp Speed program goal to begin delivering 300 million doses of a vaccine for COVID-19 in 2021.

Under the agreement, the US government will receive 100 million doses of BNT162, the COVID-19 vaccine candidate jointly developed by Pfizer and BioNTech, after Pfizer successfully manufactures and obtains approval or emergency use authorization from Food and Drug Administration.

The government will pay the companies $1.95 billion upon the receipt of the first 100 million doses, following FDA authorization or approval. The government also can acquire up to an additional 500 million doses.