Pfizer, the pharmaceutical company behind the Covid vaccine Comirnaty, has slashed its full-year sales and profit forecasts. The company attributed the downward revision to slowing demand for its Covid vaccines and treatments. Pfizer now expects group revenues for the year to be between $58 billion and $61 billion, a significant decrease from its previous forecast of $67 billion to $70 billion. Sales of Comirnaty and Paxlovid, an antiviral treatment, both saw a decline, prompting Pfizer to write off $4.6 billion in Paxlovid inventories and take a $5.5 billion non-cash charge against its third-quarter earnings. To reduce costs, the company plans to implement a $3.5 billion cost-cutting program over two years, which will involve significant job cuts.
Despite the challenges in its Covid-related products, Pfizer remains optimistic about its non-Covid product portfolio. CEO Albert Bourla stated that the company expects operational revenue growth in the range of 6% to 8% for these products in 2023. He also expressed pride in Pfizer’s scientific breakthroughs that played a significant role in controlling the global health crisis. Although the company acknowledges the decline in Covid-related revenues, it believes that these revenues will continue to contribute to its business in the future, allowing for further investments that drive long-term growth. In pre-market trading, Pfizer shares fell by 3.3% to an opening bell price of $31.06 per share.
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