Pfizer considers cost cuts as demand for COVID products wanes (updated)
01/08/2023 14:41
(Adds details on COVID products expectations in paragraphs 2-4,
background on other challenges in paragraphs 8,9)
By Bhanvi Satija
Aug 1 (Reuters) - Pfizer PFE.N 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 sales for the vaccine and the pill slumped
during the second quarter.
The company expects 2023 to be a low point for COVID product
sales after windfall gains at the peak of the pandemic, and a
potential return to growth next year.
Pfizer said on Tuesday it anticipates more clarity for COVID
revenue in the second half on a likely rise in infections in the
fall season and the U.S. switching to a commercial market for
the products from government contracts.
"To that end, if our COVID-19 revenues are less than what we
assumed, we are prepared to launch an enterprise-wide cost
improvement program," CFO David Denton said.
Sales of the COVID-19 vaccine, Comirnaty, fell 83% to $1.49
billion in the second quarter, but came in above analysts'
estimates of $1.40 billion.
Revenue from its antiviral treatment, Paxlovid, tumbled 98%
to $143 million, compared with estimates of $1.08 billion.
Pfizer trimmed the upper end of its annual revenue forecast
by $1 billion to $70 billion.
The drugmaker is also navigating damage to a warehouse at
its Rocky Mount facility from a tornado, a
narrower-than-expected recommendation for its RSV vaccine, as
well as worries its recently approved cancer drug Talzenna would
reach a smaller-than-anticipated patient population.
Meanwhile, Pfizer is preparing for many of its top-selling
drugs soon facing competition from cheaper generics and has
responded through billion-dollar acquisitions such as the $43
billion deal for cancer-therapy specialist Seagen SGEN.O .
Total revenue for the second quarter fell 54% to $12.73
billion, missing Refinitiv estimates of $13.27 billion.
Excluding items, Pfizer reported a profit of 67 cents per
share, while analysts had expected 57 cents.
The company's shares fell marginally to $35.9 in early
trading.
(Reporting by Bhanvi Satija in Bengaluru and Michael Erman in
New York; Editing by Sriraj Kalluvila)
((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))