On Wednesday, July 22, 2020, one of the largest public works projects of all time was agreed to. But this wasn't a major roadway or railroad.
This was an agreement to produce a Vaccine, really a novel gene therapy, in response to the Covid-19 Pandemic, then about to sweep the nation.
Signed by then-President Trump, and Pfizer CEO Albert Bourla, the agreement called for Pfizer to provide an initial 100 million doses of their treatment at a staggering $1.95 Billion dollars.
It was in almost every respect a novel approach.
First, it initiated a treatment for a disease that was not yet at pandemic levels. In fact, there are some medical experts who question whether the Covid-19 disease has ever achieved pandemic levels, based on the total moralities.
Second, it actively inserted the US Government in financing a pharmaceutical product that would not be administered for another 9 months. Pfizer was the first to administer its vaccine on December 18, 2020.
Although there was a great deal of uncertainty surrounding this entire operation. One thing was certain. That $1.95 billion was bound to have a tremendous impact on Pfizer's income in the coming year.
And yesterday, we saw just how much of an impact the Vaccine has had on Pfizer.
In yesterday's Earnings Report, Pfizer indicates that without the combined Covid MRNA treatments, the company's revenue would have declined by 2%.
But with the Vax, Pfizer came within just a whisker of doubling their revenue. In total, the treatments added nearly 37 billion in revenue.
Ok, so that's the headline for Pfizer: Revenue nearly doubles, earnings through the roof, forward guidance as positive as can be.
And that's what you heard on your favorite financial program last night.
But lets you and I play a little inside baseball, as I take you down some of the arcane back roads of corporate finance.
First of all the report, you saw yesterday was not official. It was just a Press Released, designed to put the good news out in front of the investing public as soon as possible
The Official Results will be provided in two reports filed with the Securities and Exchange Commission. The first report for the 4th quarter is called the 10Q, and the annual report is called a 10K.
And the reason these two reports, especially the Annual Report, are so important is in the Risk Assessment Section of the Report. The numbers are always pretty straightforward. I expect that income, expenses are right on the money.
But risk, for this product, has yet to be defined by Pfizer. And the risk is the part that the entire country, those that have been jabbed, and those that haven't been jabbed, are waiting to read.
We've all seen the Vaccine Adverse Effects Reports, VAERS. Over 1 million adverse reactions to the Covid “vaccine” over 100,000 urgent care visits, over 23,000 dead.
Those are numbers that have to send a shiver up the spine of any investor.
And yes, we understand that Pfizer has legal immunity to the extent that the Emergency Use Authorization is in effect.
Incidentally, it is only Comirnaty that has FDA approval. But ironically is not currently available in the US. So all the other medications are still administered under the EUA, Emergency Use Authorization.
And so they remain legally immune. But I'm sure the SEC will want to see exactly what the ramifications of that immunity are. And what would happen if that EUA is not renewed? As it needs to be yearly, I believe.
And what about those who have been injured and those who have been killed. What is the moral obligation of Pfizer in these tragedies? Today Pfizer has acted as if they don't exist. Refusing to even acknowledge the personal heartbreak of the thousands now who have been impacted by the Pfizer treatment.
Setting aside a debate over whether these injuries and death are an acceptable price to pay. Isn't Pfizer under a deep moral obligation to at least come to these family's aid and assistant.
So what we saw yesterday in Pfizer Earnings is only the first part of what will no doubt become an ongoing story.
I know what Pfizer's Legal Department is doing right now. They're working on that Risk Section in the Annual Report. And they don't have much time left, it must be completed by the end of this month.
Stay tuned there's much more Pfizer news ahead...