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What are the average gross and net profit margins for major vaccine manufacturers (Pfizer, Moderna, GSK, Sanofi) in recent years?
Executive summary
Major vaccine-makers show wide variation in margins driven by product mix (high-margin biologics/vaccines vs. pandemic-era COVID shots), inventory charges and one‑off items: Pfizer’s recent adjusted operating/net margins are reported in the mid‑teens to mid‑20s range depending on period and adjustments (examples: operating margin ~20% in a quarter, adjusted net margins in the mid‑teens to ~38% in Q1’25 under one presentation) [1] [2] [3]. Moderna moved from very high pandemic gross margins to quarters with negative or >100% cost-of‑sales ratios and large net losses as volumes plunged (cost of sales >100% in Q2’25; earlier reports show gross margin compression) [4] [5]. GSK and Sanofi report higher, steadier gross margins for their vaccine/biopharma businesses (GSK core operating profit growth and margin leverage; Sanofi gross margin ~77–78% and business BOI/net profit ratios ~27–30%) [6] [7] [8] [9].
1. Pfizer: transitioning from pandemic peaks to normalized, still‑profitable margins
Pfizer’s margins have fallen from the extraordinary pandemic highs but remain solid in recent quarters: some outlets cite an operating margin around 20% in a quarter and trailing‑12‑month operating margins in the mid‑20s to ~30% range depending on the timeframe and adjustments [1] [10]. Company commentary and analyst writeups show adjusted gross margins near the industry’s high‑end (Pfizer reported adjusted gross margin ~81% in Q1’25 in one summary) and adjusted net/earnings metrics that beat estimates—some reports put adjusted net income margins for Q1’25 in the mid‑teens or higher depending on one‑offs [3] [2]. Caveat: figures vary by whether outlets use GAAP vs. adjusted ("core") metrics and whether COVID product accounting or inventory charges are included [11].
2. Moderna: from boom‑time margins to quarter‑by‑quarter volatility and losses
Moderna’s margin profile has swung dramatically. Multiple reports show collapsing revenue vs. pandemic peaks with severe margin pressure—examples include cost of sales exceeding 100% of net product sales in Q2’25 due to write‑downs and underused capacity, large net losses in early 2025, and guidance/analyst debate about returning to positive GAAP profitability only years out [4] [12] [5]. Historical commentary notes Moderna once guided to gross margins around 60–65% in healthier years, but recent quarters include negative gross‑profit outcomes when extraordinary charges are recognized [13] [5]. The key drivers reported: rapid demand decline for Spikevax, inventory write‑downs, and high fixed manufacturing costs [4].
3. GSK: relatively steady operating margins tied to diverse vaccine and specialty‑medicines mix
GSK presents a more consistent margin story. Company releases and market reports show core operating profit growth (e.g., core operating profit +11–12% in reported periods) and explicit guidance that gross‑margin benefits will accrue from improved product mix (specialty medicines and vaccines) [6] [14] [7]. GSK’s public filings emphasize “core” measures (non‑IFRS) such as core operating profit and core EPS; those indicate healthier, less volatile margins than pandemic‑era COVID‑centric peers [15]. Note: comparisons require care because GSK focuses on core/non‑GAAP metrics and currency effects are often highlighted [16].
4. Sanofi: high gross margins in Biopharma and stable profitability metrics
Sanofi’s reported business gross margins and business‑operating‑income ratios have been high and stable: company statements cite gross margins around 74–78% and BOI (business operating income) to net sales ratios in the high‑20s to low‑30s percent range (e.g., gross margin 77.7–78% in 2025 releases; BOI/net sales ~27–30%) [8] [17] [9]. Sanofi’s headlines highlight that vaccine sales contribute to high gross profit while product mix (Dupixent and newly launched drugs) supports net income growth [18]. Macro/trend caveat: vaccine volumes/pricing and “negative buzz” or seasonal timing can cause quarter swings [19].
5. Why margins diverge across these companies — underlying drivers
Sources point to a few consistent drivers: (a) product mix (legacy biologics and specialty drugs vs. seasonal vaccines vs. one‑off COVID contracts) determines gross margins [7] [8]; (b) inventory write‑downs and unutilised capacity (Moderna) can flip gross margins negative in a quarter [4]; (c) one‑time charges, legal settlements and restructuring (Pfizer, GSK, Sanofi) affect reported GAAP margins while adjusted/core margins can present a different picture [20] [21] [22]; (d) reporting conventions (GAAP vs. “core”/adjusted) and currency effects change cross‑company comparability [16] [11].
6. Practical takeaway and limits of available reporting
Available sources show Pfizer and the large incumbent European firms (GSK, Sanofi) reporting relatively high gross margins (often 70%+ at the Biopharma/vaccine level) and stable operating/net profitability on a core basis, while Moderna’s margins have swung from pandemic highs to quarters with negative gross results and sustained net losses as it adjusts capacity and product mix [3] [7] [8] [4]. Precise "average gross and net profit margins" by company for "recent years" are not compiled in a single table in the provided sources—readers should consult each company’s GAAP and non‑GAAP disclosures (annual/quarterly reports) for standardized multi‑year averages; available sources do not provide a unified multi‑year average table for all four firms in one place.