Pfizer, a leading pharmaceutical company, has recently seen a decrease in profits due to the ongoing COVID-19 pandemic. Despite its reputation for creating life-saving drugs and vaccines, the company has faced numerous challenges related to the virus.
Pfizer‘s pre-market Tuesday announcement stunned Wall Street as it foreshadows a starker than anticipated sales decrease for its COVID-19 vaccine and treatment. Additionally, the drugmaker released an earnings anticipation below analyst expectations causing stocks to dive before markets open.
Massive Drop in Pfizer ‘s COVID Vaccine and COVID Treatment Drugs.
Analysts predicted that sales of Comirnaty and Paxlovid, both produced by Pfizer, would decline next year before gradually recovering. What wasn’t expected was the extent of this decrease; it far exceeded expectations.
Pfizer has announced its intentions to move away from government contracts and towards commercial sales in the United States for both Comirnaty and Paxlovid. Tuesday’s announcement stated that Pfizer anticipates a 64% decrease in Comirnaty sales to approximately $13.5 billion. In comparison, they predict a 58% decrease in Paxlovid to around $8 billion, resulting in an overall total of about 21.5 billion – which is almost 3 billion less than what Wall Street anticipated it would be.
In the upcoming year, according to FactSet, Pfizer foresees adjusted earnings ranging from $3.25 to $3.45 per share – a prediction lower than outstrips analyst projections of $4.34 per share. During the just-finished fourth quarter, nearly half of Pfizer’s total revenue was derived from Comirnaty — its top-selling Covid vaccine– totaling an impressive amount at approximately 24 billion dollars; another 1.8 billion in sales was contributed by Paxlovid.
Even if the Sales of Other Drugs Increase, It May Need to be More.
Apart from Comirnaty and Paxlovid, the pharmaceutical giant Pfizer has a variety of primary care drugs and cancer treatments. Nevertheless, its vaccines have rapidly become an essential part of their trade.
In the previous quarter, Pfizer experienced a 40% surge in sales of their Prevnar vaccines that protect against pneumonia and related bacterial diseases totaling around $1.7 billion. The drugmaker’s adjusted overall earnings were reported at $1.14 per share for the period; however, analysts predict fourth-quarter profits to be closer to $1.05 per share on revenue, reaching nearly $24.38 billion as sourced by FactSet data.
Last year, Comirnaty’s global sales skyrocketed to $37.8 billion, giving Pfizer an immense 43% profits growth of up to $31.4 billion! Most of the revenue from this vaccine comes in for both partners: BioNTech and Pfizer Inc., along with the costs involved in making and distributing it. Despite its success, stock prices for New York-based Pfizer dropped by almost 3%, or $1.22 per share, when markets opened on Tuesday morning–13% lower than where they were last year.
The pandemic has disrupted supply chains and changed consumer behavior, leading to a decline in sales for many industries, including Pfizer. However, the company remains optimistic and is actively working on finding solutions to mitigate the impact of COVID-19 on its business. With its strong legacy and innovative spirit, Pfizer is poised to weather this storm and emerge stronger than ever.
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