After COVID-19 vaccine sales boom, Pfizer faces tough choices

As Pfizer enters a new phase following its Covid-19 boom, it finds itself facing new rights that will force it to abandon research projects and possibly impose a wave of layoffs, newspapers reported. wall street journal.

According to Reuters, on Monday, the company announced that COVID-19 vaccine sales are expected to peak at $57 billion in 2022, and sales will reach $8 billion in 2024, and subsequently the stock price fell to the lowest level in a decade.

“We want to be conservative … we want to be trustworthy so that we don’t create uncertainty again, which unfortunately has been the case this year,” Pfizer CEO Albert Bourla said in a said on a conference call with investors.

The company also expects 2024 adjusted earnings in a range of $2.05 to $2.25 per share, below analysts’ expectations of $3.16 per share.

In light of those numbers, the company announced it would take cost-cutting measures worth $3.5 billion, including laying off several employees.

Not long ago, Pfizer was one of the most impressive companies for its ability to produce a COVID-19 vaccine in record time and grow its sales by more than $100 billion amid a pandemic sweeping the world.

According to the newspaper, the company has lost about $140 billion in market value since the beginning of this year, and announced plans to halt research projects and layoffs have led to a decline in employee morale.

The Wall Street Journal noted that what prompted the company’s rapid decline and fall was “mistakes and a misreading of U.S. market behavior. Pfizer overestimated future demand for its Covid-19 products, but in the wake of the Covid-19 outbreak – The epidemic subsided on the 19th, and sales fell rapidly.” This is the company’s expectation… but the company’s other products cannot fill the gap of decline.

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Pfizer isn’t the only company facing disappointing sales due to the pandemic, with Moderna also facing a sharp decline in vaccine sales.

A Pfizer spokesperson confirmed to the newspaper that “the company has begun a broad effort to adjust the cost base across its businesses to ensure continued growth and profitability going forward.”

“Unfortunately, some hard-working colleagues and their roles will be affected,” she added.

Demand for Pfizer’s COVID-19 vaccine has dropped, with the Centers for Disease Control and Prevention (CDC) revealing that only 17% of people over 18 in the United States have received a COVID-19 booster dose.

The company said it will launch new products that will boost sales, including seeking approval for nine new drugs and vaccines this year, and has other products that could add more revenue.

The company said it is striking deals to acquire other companies, such as Thursday’s deal with Seagen, which is developing a cancer treatment that could generate $25 billion in revenue for Pfizer by 2030.

Seagen has developed a promising technology that can specifically target cancer cells more precisely, thereby reducing side effects.

According to Agence France-Presse, Pfizer currently sells cancer treatment drugs, including breast and prostate cancer, with sales expected to reach $12.1 billion by 2022.

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