Pfizer Shares Fall on Negative 2024 Profit Outlook

Pfizer released a disappointing 2024 forecast on Wednesday, broadsiding shares as the pharmaceutical giant navigates a deep plunge in sales related to the Covid-19 pandemic.

The company, which reported more than $100 billion in revenue in 2022 due to the boost from Covid-19 vaccine and therapeutic drugs, expects much lower 2024 revenues of between $58.5 billion and $61.5 billion.

Pfizer anticipates 2024 profits will be dragged down by an estimated 40 cents per share in costs to finance its $43 billion acquisition of cancer-focused biotech company Seagen.

But Pfizer, which reported $44.3 billion in revenues through the first three quarters of 2023, includes only about $8 billion in expected revenues for vaccine Comirnaty and therapeutic Paxlovid in 2024.

Pfizer shares dived more than 8% in early trading following the earnings figures, which were lower thananalyst estimates by a wide margin.

The acquisition of Seagen doubles the size of Pfizer's oncology pipeline and late-stage development programs.

Pfizer shares have dropped steadily throughout 2023, in contrast to the gains made by the broader market. Despite this, analysts believed that the company's financials remain healthy. The purchase of Seagen, although an expensive item now, could yet prove to be a major winner given Seagen’s pioneer status in cancer treatments.