The pharmaceutical giant warns of write-downs in the billions range and a failure in expected revenues.
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Pfizer warns the market of the earnings failure on Friday, which sends the stock down in after-hours trading in the US.
The pharmaceutical giant now expects a turnover of between 58 and 61 billion dollars in 2023, a significant cut from previous expectations of 67 to 70 billion dollars. This may also have consequences further down in the accounts. Earnings per share are now expected to land at $1.45 to $1.65, roughly halving from the previous forecast of $3.25 to $3.45 per share. In addition, the company is writing down the value of its inventory of various covid medicines with 5.5 billion dollars as a result of lower than expected demand.
Lose income
Pfizer announces an amended supply agreement with the US authorities. It entails, among other things, that the authorities deliver back 7.9 million doses of the corona medicine Paxlovid by the end of 2023.
This implies a reversal of expected revenues of around 4.2 billion dollars.
Pfizer will now sell the medicine in a commercial market, but reports that this will be postponed until after the New Year.
This postponement, together with less use of the corona vaccine Comirnaty, will lower expected income even more. This reduction, partially offset by $1 billion in cost cuts, is $4.8 billion.
Pharmaceutical stocks fall
Pfizer’s surprise earnings announcement on Friday evening is causing waves in after-market trading on Wall Street.
At 11 p.m. the share is down 4.14 per cent in after-market trading.
Pfizer’s vaccine partner Biontech is also down nearly three percent. At the same time, competitor Moderna is down more than four percent.
2023-10-13 20:48:49
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