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FedEx handles about 500,000 dry ice shipments each month. Dry ice is needed to keep the Pfizer vaccine at the very low temperatures you need.
Morry Gash / POOL / AFP via Getty Images
Pfizer
has begun shipping Covid-19 vaccines to the U.S., a monumental effort that affects almost every part of the logistics industry and will affect billions of lives.
The pharmaceutical company (ticker: PFE) manages the first step of the distribution process, transporting the vaccines from its manufacturing facilities to
United parcel service
(UPS) and FedEx facilities (FDX). Some Pfizer vaccines, along with products such as syringes and masks, will go from manufacturers to
McKesson
(MCK), which operates as a centralized distributor for the government and will also ship vaccines to FedEx and UPS.
When express shippers receive the vaccines, they will send the doses packaged in dry ice to the included pharmacies.
CVS
(CVS) i
Walgreens
(WBA), as well as medical offices, mobile vaccination units, outpatient clinics, and other places.
A vaccination kit contains about 100 doses of vaccine.
UPS and FedEx have a health history. The UPS Healthcare division operates 128 facilities in 32 countries. FedEx, meanwhile, uses SenseAware ID, which the company describes as “a low-power Bluetooth device” that attaches to vaccine shipments, helping to ensure temperature-sensitive packages arrive quickly and safely.
FedEx said it handles about 500,000 dry ice shipments each month. Dry ice is needed to keep the Pfizer vaccine at the very low temperatures you need.
While the United States awaits the distribution of the Covid-19 vaccine, several market observers are warning on Wall Street. JJ Kinahan of TD Ameritrade and Emily Roland of John Hancock discuss concerns about U.S. stocks and bonds, respectively. In addition, Barron’s Carleton English offers a word of caution to retail investors who accumulate in IPOs.
FedEx said De Barron by email that sent its first shipment to a Massachusetts hospital before 6 a.m., Eastern Time, Monday. The company has made more than 80 deliveries since then.
“This is a historic moment and represents a monumental feat for vaccine development and deployment dossier,” Mike McDermott, president of Pfizer Global Supply, said in press releases from FedEx and UPS. “Exceptional logistics is critical to getting our products to those who need them across the country.”
Distribution is ultimately controlled by the federal government.
Vaccine allocation information should be available on the Human and Health Services website. HHS has published weekly allocations for other Covid-19 therapies granted emergency use authorizations. The department was not immediately available to comment on when or if a vaccine allocation board would be put in place.
Other companies also play a role in vaccine distribution. “We are delighted, honored and privileged to participate in this historic vaccine launch,” he said
XPO Logistics
(XPO), CEO Bradley Jacobs, at a Credit Suisse investor conference in December. “Our main vaccine-producing pharmaceutical companies are our customers.”
He added that the biggest beneficiaries will be FedEx, UPS and DHL, a division of
Deutsche Post
(DPW.Germany), “but there is a lot to go for for everyone in the secondary market.” He was talking about shipping things like syringes and saline, as well as temperature-controlled packaging materials.
As for stocks, Cowen analyst Helane Becker believes the distribution of vaccines will benefit both FedEx and UPS, especially the former. In the long run, ”there are other tail winds [for FedEx] to the distribution of vaccines, as it will have to be moved around the world and specifically to developing countries where logistics are more difficult, ”he wrote.
Becker believes FedEx has unique experience in this area. It values FedEx shares in Buy and has a target of $ 290 for the share price.
Investors will hear more about the distribution of vaccines soon. On Thursday evening, FedEx reported its second-quarter earnings for fiscal year 2021.
Wall Street analysts ’financial models point to earnings per share of $ 3.98, up from $ 19.4 billion in sales. Last year, in the comparable quarter, FedEx earned $ 2.51 per share from $ 17.3 billion in sales.
Vaccines can help increase corporate profits and potentially. their stock prices. But FedEx and UPS shares have had a good year so far. and the distribution of vaccines is a relatively minor factor compared to the explosion in the volume of e-commerce that has caused the pandemic.
Shares have increased 92% and 44%, respectively, so far in 2022. This is much better than neither.
S&P 500
i
Dow Jones industrial average.
McKesson shares have risen 26% so far. XPO shares, meanwhile, accounted for 51%. However, shares of CVS and Walgreens are down 4% and 29%, respectively.
Write to Al Root at [email protected]