U.S. to pay Pfizer, BioNTech $2 billion for 100 million doses of coronavirus vaccine

United States will pay Pfizer and German biotech firm BioNTech $1.95 billion to produce and deliver 100 million doses of their Covid-19 vaccine in the U.S. if it proves safe and effective in humans.

Under the agreement, the U.S. can acquire an additional 500 million doses of drug, the Department of Health and Human Services added. BioNTech and U.S.-based Pfizer are jointly developing their potential vaccine.

If it proves safe and effective in a large phase three trial and receives regulatory approval, HHS said Pfizer will begin to deliver doses to locations across the U.S. at the government’s direction. The vaccine would then be made available to Americans “at no cost,” HHS said. It’s unclear who the first doses of the potential vaccine would go to and how that decision would be made.

The companies previously said they expect to begin a large trial with up to 30,000 participants later this month, if they receive regulatory approval.

Shares of Pfizer rose more than 4% in premarket trading on the news and BioNTech stock popped over 6%.