Pharmaceutical giant Pfizer Inc. (PFE) announced on June 6 that it planned to significantly increase its investment in U.S. manufacturing in support of Paxlovid, its COVID-19 oral treatment. The company will make a $120 million investment in its Kalamazoo, Mich. manufacturing facility to increase production of pharmaceutical ingredients for the drug. The U.S. Food and Drug Administration (FDA) issued an emergency use authorization for Paxlovid in certain cases last December.
Pfizer aims to produce 120 million courses of Paxlovid in 2022. As of Pfizer's announcement, the company says it has shipped 12 million courses of the antiviral treatment to 37 countries, including five million to the U.S.
- Pfizer announced on June 6 that it would invest $120 million to boost production of key ingredients for its Paxlovid COVID-19 oral treatment.
- The investment is expected to enable Pfizer to produce 120 million courses of the drug in 2022.
- The White House has doubled the number of U.S. locations that provide Paxlovid in effort to make access easier to Americans.
Advancing Pfizer's U.S. Manufacturing Efforts
Pfizer expects the $120 million investment to create over 250 new jobs at the company's Michigan production site. It is the company's most recent effort to expand U.S. manufacturing, following $5 billion in investments in U.S. manufacturing and distribution since 2017.
The investment announced this week will specifically support the production of active pharmaceutical ingredients and registered starting materials, which are used to make Paxlovid. Although the investment will boost U.S. manufacturing capacity, Pfizer says it also will help boost the supply of Paxlovid to patients globally.
Impact for Investors
Pfizer's announcement indicates the company expects to dramatically increase production of Paxlovid in the near future. So far, the company has produced under 17 million courses of the treatment. By scaling up production, Pfizer is positioning Paxlovid to be the primary antiviral treatment for COVID-19. Pfizer said that a study it led revealed an 88% decline in COVID-19-related hospitalization or death for adults given Paxlovid compared to a placebo in certain cases.
Pfizer's press release follows a late May announcement by the Biden administration that it has doubled to nearly 40,000 the number of U.S. locations where Paxlovid is available. As the White House continues to expand access to Paxlovid, Pfizer may see even stronger demand for its treatment.