Pfizer mulls cost cuts on volatile COVID products demand
(Reuters) — Pfizer (NYSE:PFE) will launch a cost-cutting program if demand for its COVID-19 products keeps underperforming expectations this fall, the U.S. drugmaker said on Tuesday, after quarterly sales for the vaccine and pill fell short of Wall Street targets.
The company has said it expects 2023 to be a low point for COVID product sales following strong demand at the peak of the pandemic before a potential return to growth in 2024.
«Clearly, there is a higher level of uncertainty regarding the demand projections for our COVID-19 products than for the rest of the business,» CEO Albert Bourla said.
Comirnaty sales declined 83% to $1.49 billion in the second quarter and antiviral treatment Paxlovid revenue tumbled 98% to $143 million.
That compared with analysts' estimates of $1.40 billion for the vaccine and $1.08 billion for the pill.
However, the company maintained its forecast for annual COVID revenues at about $21.5 billion.
Pfizer also trimmed the upper end of its annual revenue forecast by $1 billion to $70 billion while retaining the low end at $67 billion. It left its profit forecast range unchanged at $3.25 to $3.45 per share.
Pfizer is also preparing for declining revenues in coming years as some of its top-selling drugs are soon set to face competition from cheaper generic treatments. The company has responded through billion-dollar acquisitions, headlined by the $43 billion deal for cancer-therapy specialist Seagen, as well stepped up spending on research and development.
Total revenue for the second quarter fell 54% to $12.73 billion, compared with analysts' estimates of $13.27 billion, according to Refinitiv data.
Excluding items, Pfizer reported a profit of 67 cents per share, while analysts had
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