Pharmaceutical giant Pfizer is gearing up capacity for Covid-19 vaccines to be able to provide at least 3 billion doses by next year as it anticipates "durable demand" for the shots, its chief executive said.
The company has so far shipped 430 million doses of the vaccine it has developed in partnership with Germany's BioNTech to 91 countries, chairman and chief executive Albert Bourla said on an investor call last week.
"Based on what we have seen, we believe that a durable demand from our Covid-19 vaccine, similar to that of the flu vaccines, is a likely outcome," Mr Bourla said.
"We want to be a long-term partner to health authorities around the world in their ongoing efforts to combat Covid-19, including their planning for an ongoing pandemic vaccination approach that is fit-for-purpose to local requirements."
Pfizer said revenue from the Covid-19 vaccines contributed $3.5 billion to its quarterly revenue of $14.6bn, which was 45 per cent higher than in the same period last year and ahead of analysts' expectations. First quarter profit also rose 45 per cent to $4.88bn.
On Monday, the US Food and Drug Administration (FDA) authorised the use of the Pfizer-BioNTech vaccine on children aged 12 to 15 years old.
Acting FDA commissioner Janet Woodcock said the decisions "allows for a younger population to be protected from Covid-19, bringing us closer to returning to a sense of normalcy and to ending the pandemic."
The FDA previously granted an emergency use authorisation for the Pfizer-BioNTech vaccine to individuals aged 16 and older.
Pfizer's partner in the Covid-19 vaccine, BioNTech, reported a €1.13bn ($1.37bn) first quarter profit on Monday as revenue surged to €2.05bn, up from just €27.7 million in the same period last year. The companies have so far signed orders for 1.8 billion doses for delivery this year, as well as a number of contracts for delivery "for 2022 and beyond", BioNTech said.
Mr Bourla told investors last week that Pfizer expects revenue of $26bn from its Covid-19 vaccine this year, with the company's full-year sales guidance raised to $70.5bn-$72.5n
"We are in discussions with a number of countries around the world for multi-year contracts for the potential supply of Covid-19 vaccine doses during 2022 and beyond," he said.
The company recently signed an agreement with the UK to supply 60 million extra doses this year, with Israel to supply millions of doses next year and with Canada to supply 125 million doses next year and in 2023, with an option to supply 60 million more by 2024.
Pfizer's shares were up 0.71 per cent to $39.86 at the close of trading on Monday, giving the company a market cap of $222.35bn. Following last week's results, JP Morgan raised its sales estimate for the company, saying it expects Pfizer to sell about $31bn of Covid-19 vaccines this year and $21bn in 2022, although it maintained its current target price of $40 on the company.
"We expect Covid vaccine sales to remain a focal point for the company and we still see room for upside to both Pfizer's 2021 guidance as well as consensus sales in 2022. That said, we continue to forecast a meaningful step down in [Covid-19 vaccine] sales in 2023 and beyond," a note from analysts including managing director Chris Schott said.
Mizuho Securities, which has a price target of $42 on Pfizer's shares, warned of "potential developments leading to structural changes in how drugs are priced in the US", with President Joe Biden last week calling for patents to be suspended on Covid-19 vaccines and treatments.
"Our current Pfizer estimates assume little to no growth coming from price increases, and while we expect continued rhetoric around drug pricing, we do not expect any major new policies to be implemented that would dramatically impact Pfizer’s outlook, at least in the near- to-mid term," Mizuho analysts including managing director Vamil Divan said.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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The Sheikh Zayed Future Energy Prize
This year’s winners of the US$4 million Sheikh Zayed Future Energy Prize will be recognised and rewarded in Abu Dhabi on January 15 as part of Abu Dhabi Sustainable Week, which runs in the capital from January 13 to 20.
From solutions to life-changing technologies, the aim is to discover innovative breakthroughs to create a new and sustainable energy future.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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The five pillars of Islam
1. Fasting
2. Prayer
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4. Shahada
5. Zakat
