NEW YORK: In the wake of a substantial decline in profits and lower Covid-related revenues, Pfizer has revised its full-year sales outlook for 2023. The pharmaceutical giant reported a sharp 77 percent drop in second-quarter profits, amounting to $2.3 billion, as revenues fell by 54 percent, reaching $12.7 billion.
The second-quarter revenues for Pfizer's Covid-19 vaccine and Paxlovid therapeutic were significantly lower than expected at $1.6 billion, in stark contrast to the $16.9 billion generated during the same period the previous year.
Among the challenges affecting revenues, Pfizer mentioned a few individual product-related factors, including the need for US approval for a drug combination to treat prostate cancer and a crucial recommendation from the US Centers for Disease Control and Prevention for the Abrysvo vaccine.
Additionally, the recent tornado damage to Pfizer's key manufacturing facility in Rocky Mount, North Carolina, had a substantial impact on near-term results. The tornado struck on July 19, severely affecting a warehouse responsible for storing raw materials and finished medicines awaiting release by quality assurance. This facility represents nearly 25 percent of the company's sterile injectables manufacturing.
In light of these challenges, Pfizer has adjusted its full-year revenue growth forecast for 2023, excluding Covid-related programs, to six to eight percent, down by one percent from the previous estimate.
Despite the uncertainties surrounding the Covid landscape, Pfizer's Chief Financial Officer, David Denton, emphasized the company's commitment to ensuring successful fall vaccinations during the respiratory infection season.
Moreover, Pfizer's acquisition of biotechnology company Seagen remains on track, with the company in communication with regulators and expecting the deal to close either in late 2023 or early 2024.
Following the release of this financial news, Pfizer's shares experienced a 1.2 percent decline, trading at $35.64 in pre-market activity. The company's leadership remains vigilant amid the rapidly evolving and unpredictable environment surrounding the Covid pandemic.
