Pfizer issued a disappointing 2024 forecast Wednesday, denting shares as the company navigates a profound plunge in sales tied to the Covid-19 pandemic.
The company, which reported more than $100 billion in revenue in 2022 due to the lift from Covid-19 vaccine and therapeutic sales, sees 2024 revenues of between $58.5 billion and $61.5 billion, according to its presentation.
Pfizer signaled it expects 2024 profits to be dented by an estimated 40 cents per share in costs to finance its acquisition of Seagen.
Shares plunged more than eight percent in late-morning trading following the earnings figures, which lagged analyst estimates by a big margin.
The drugmaker is poised on Thursday to complete its $43 billion acquisition of cancer-focused biotech company Seagen.
Chief Executive Albert Bourla said the acquisition doubles the size of Pfizer's oncology pipeline and late-stage development programs.
"We are confident that they (Seagen) are the ideal partner for Pfizer," Bourla said at the investor presentation. "Together we will accelerate the next generation of potential cancer breakthroughs."
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.
"While we do not expect Covid vaccination and infection rates to change materially in 2024 versus this year, we have set our Comirnaty and Paxlovid 2024 revenue expectations lower," said Pfizer Chief Financial Officer David Denton.
Pfizer shares have fallen fairly steadily throughout 2023, in contrast to the gains made by the broader market and "may have finally hit bottom," said a note from Briefing.com.
"Shares of Pfizer have withered this year. However, the company's financials remain healthy," said Briefing, adding that the expensive purchase of Seagen could prove a winner given its "pioneer" status in cancer treatments.
