US drugmaker expects revenues of between $67bn and $71bn this year, down from a record
Jamie Smyth in New York7 hours ago
Pfizer forecast a sharp fall in annual sales in 2023 due to the easing of the pandemic and reduced contributions from its Covid-19 vaccine and antiviral medicine.
The US drugmaker said on Tuesday it expected to generate revenues of between $67bn and $71bn in 2023, down about a third from a record $100.3bn in the previous year. It forecast adjusted earnings in a range of $3.25 to $3.45 a share in 2023, well below analysts’ consensus estimates for earnings of $4.42.
Pfizer said reduced demand for Covid products would dent sales of its vaccine and antiviral treatment Paxlovid, which are forecast to fall to $13.5bn and $8bn this year respectively, compared with $37.8bn and $18.9bn in 2022.
The weaker-than-expected forecasts come amid growing investor concern over Pfizer’s ability to fuel future growth, with the pandemic threat receding and several lucrative medicines facing competition from copycat versions in coming years.
Pfizer shares have fallen 15 per cent in January following downgrades by several investment banks. In pre-market trading Pfizer shares shed a further 3.1 per cent to $42.22.
Chief executive Albert Bourla said 2023 would be a “transition” year for the company as the Covid market in the US shifted from one where the government was the principal payer for products to a more traditional private marketplace. Pfizer is also preparing to launch a large number of new products.
“In 2022, we sold at pandemic prices more treatment courses than were eventually used. This resulted in a government inventory build that we expect to be absorbed some time in 2023, probably second half.”
On Monday President Biden said he planned to end the Covid-19 and public health emergency on May 11, a move that will usher in a commercial market and higher prices for vaccines and treatments. Pfizer has said it is considering charging up to $130 for its Covid jab, almost four times the current price.
Pfizer said it expected revenues from Covid products to grow in 2024 after hitting a low point in 2023. The company is also preparing to launch 19 new products over the next 18 months, as it races to compensate for lower Covid revenues and loss of exclusivity in some key products.
Analysts were wary about the future prospects for the Covid franchise.
“Pfizer is pointing to a rebound in 2024 but we expect the Street to remain sceptical here,” said Chris Schott, analyst at JPMorgan.
“We would not be surprised to see shares range bound in the low/mid $40s as the Street looks to better understand near-term core vs Covid sales/earnings dynamics.”
The downbeat forecasts contrast with a stellar performance by Pfizer in 2022.
Pfizer reported earnings per share of $6.58 in 2022, a record for the 174-year-old company. It also reported a strong fourth quarter, with adjusted earnings of $1.14 a share, well above consensus forecasts of $1.05 a share.
Fonte: Financial Times