Biotech
Monday, October 16th, 2023 1:51 pm EDT
Key Points
- Reduced Earnings and Revenue Guidance: Pfizer has significantly lowered its full-year earnings and revenue projections due to a decrease in demand for its COVID-related products. The company now expects 2023 sales to be in the range of $58 billion to $61 billion, down from its previous guidance of $67 billion to $70 billion. This revision is primarily attributed to the declining demand for Pfizer’s COVID products.
- Slashed Earnings Outlook: Pfizer has also reduced its full-year adjusted earnings guidance to a range of $1.45 to $1.65 per share, down from the earlier range of $3.25 to $3.45 per share. The decrease in expected revenue is due to various factors, including a $7 billion reduction in revenue from the COVID treatment Paxlovid, partly because of the return of doses designated for emergency use by the U.S. government.
- Reasons for Revenue Reduction: Pfizer anticipates that revenue from Paxlovid will be significantly lower than previously expected, and it also foresees a $2 billion drop in sales of its vaccine, Comirnaty, mainly due to lower-than-expected vaccination rates. The rollout of Pfizer’s latest COVID booster in the U.S. has faced challenges, including supply and insurance coverage issues, while fewer patients are seeking COVID treatments compared to earlier in the pandemic, thanks to higher vaccination rates and prior immunity. Following this announcement, Pfizer’s shares fell by more than 3% in extended trading.
Pfizer has lowered its full-year earnings and revenue projections, citing decreased demand for its COVID-related products. The company now anticipates 2023 sales in the range of $58 billion to $61 billion, a significant reduction from its previous estimate of $67 billion to $70 billion. This revenue adjustment is primarily attributed to the decline in demand for Pfizer’s COVID products.
Pfizer has also revised its full-year adjusted earnings guidance to a range of $1.45 to $1.65 per share, down from the prior range of $3.25 to $3.45 per share. The decrease in expected revenue from the COVID treatment Paxlovid, approximately $7 billion less than previously projected, is linked to the return of doses earmarked for emergency use by the U.S. government. Additionally, Pfizer foresees a $2 billion drop in Comirnaty vaccine sales due to lower-than-expected vaccination rates.
Although Pfizer introduced its latest COVID booster in the U.S. recently, the rollout has faced challenges related to supply issues and insurance coverage. Furthermore, a decreased number of patients are seeking COVID treatments compared to earlier in the pandemic, likely due to higher vaccination rates and prior immunity, leading to less severe cases. Following this announcement, Pfizer’s shares fell by more than 3% in extended trading.
For full original article on CNBC, please click here: https://www.cnbc.com/2023/10/13/pfizer-cuts-earnings-revenue-guidance-as-covid-sales-slump.html
