Shares of Pfizer Limited rose over 5% on BSE to Rs 5,385.60 after the UK government formally authorized the Pfizer-BioNTech vaccine for emergency use. The vaccine is set to be rolled out in the country next week, with the elderly in care and medical workers being the first to receive it. Britain is reportedly going to be the first country to begin vaccinating its population.
"The government has today accepted the recommendation from the independent Medicines and Healthcare products Regulatory Agency (MHRA) to approve Pfizer-BioNTech's Covid-19 vaccine for use," the UK government said on Wednesday. "The vaccine will be made available across the U.K. from next week."
Chairman and CEO of Pfizer Inc, Albert Bourla, called the authorization was a "historic moment."
In July, Pfizer and BioNTech announced about an agreement with the UK to supply 30 million doses of its mRNA-based vaccine, formally known as "BNT162b2," once authorized for emergency use. The number of doses was increased to 40 million doses in early October, which as a two-dose vaccine, is expected to be enough to vaccinate around a third of UK's 66 million population.
Shares of Pfizer Limited, subsidiary of the American company, spiked after the UK government's announcement in the afternoon.
The American pharma company's development can intensify the earnings growth of the Indian subsidiary given its strategy to align the Indian business and portfolio with the global structure. Investors may have rushed to buy the stock on the expectation that while the intellectual property may be retained by the parent, Pfizer India may benefit from distribution and manufacturing of the vaccine.