© Reuters. Pfizer reports losses in 3Q23 due to cancellation of Paxlovid and Covid vaccine
Pharmaceutical giant Pfizer (NYSE:) reported that it had a smaller-than-expected adjusted loss during the third quarter of the year, as it recorded charges largely related to its antiviral treatment Paxlovid and the Covid vaccine.
Pfizer said it took a $5.6 billion charge for inventory write-offs in the third quarter as there was lower-than-expected use of Covid products.
Of these announced writedowns, $4.7 billion is attributed to Paxlovid and $900 million is attributed to the company’s Covid vaccine.
The company also reiterated the adjusted full-year earnings and revenue guidance it announced two weeks ago, which is sharply lower than its initial projections due to weakening demand for Covid products.
This decline in demand also led the company to announce an extensive $3.5 billion cost reduction plan. Pfizer called these efforts necessary for investor confidence as the industry battles a decline in anti-Covid products.
Pfizer quarterly report
In the third quarter of the year Pfizer said it had a loss of 17 cents per share; while in terms of income, the company said that it obtained a profit of 13,230 million dollars, 42% less than the same period in 2022, compared to the 13,340 million that the market expected.
In the period, Pfizer had a net loss of $2.38 billion or 42 cents per share, compared to net income of $8.61 billion or $1.51 per share in the same period in 2022.
After the report, the company’s shares fell 1.13% to $30.20 per share in trading at 10 a.m. (Mexico City time).
Through Monday’s close, Pfizer shares have fallen 40% so far this year, putting the company’s market value at about $172.5 billion.
Covid products report
The company’s Covid vaccine raised $1.31 billion in sales in the period, that is, 70% less than in the same period of the previous year. According to FactSet (NYSE:) estimates, analysts expected the injection to generate $1.53 billion.
Paxlovid obtained revenues of 202 million dollars, which is equivalent to a decrease of 97%, analysts expected a collection of 613.5 million dollars from sales of the drug.
Together the products generated about $1.5 billion in revenue during the quarter, well below the same period last year when it grossed about $12 billion in sales.
Forecasts for 2023
The pharmaceutical giant reiterated its guidance it outlined earlier this month, expecting 2023 sales of between $58 billion and $61 billion and adjusted earnings of between $1.45 and $1.65 per share.
The company expects its Covid vaccine to generate $11.5 billion in sales this year, while its antiviral treatment Paxlovid will generate $1 billion in revenue.
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With information from CNBC
The post Pfizer reports losses in 3Q23 due to cancellation of Paxlovid and Covid vaccine appeared first on THE CEO.
2023-10-31 18:15:25
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