Pfizer slashes full-year earnings and revenue guidance as Covid treatment, vaccine sales slump
CNBCOct 16, 2023
Pfizer Drops Revenue Prediction, Plans Job Cuts
The Facts
Pharmaceutical company Pfizer has announced it will cut its full-year revenue forecast by 13% and trim $3.5B worth of jobs and expenses in the face of slower sales of its COVID vaccine and treatment.
With demand for Comirnaty, a COVID vaccine, and the antiviral treatment Paxlovid down, [the New York City-headquartered] Pfizer estimates its 2023 revenue will fall to $58B to $61B, down from the $67B to $70B it previously predicted.
The Spin
Narrative A
A dip in demand for COVID jabs and treatments was predictable, but unfortunately, several factors contributed to Pfizer’s outlook worsening. Between people’s expected COVID fatigue and rampant misinformation about vaccines that continues to proliferate, it’s difficult to convince doubters to keep up with their protection. Supply and insurance snafus have also made it harder for the public to access Pfizer products and have made for a bumpy road for the Big Pharma titan.
Narrative B
This is just an expected market correction after Pfizer set revenue records, and the pharmaceutical giant will be right back on track as it will be able to sell Paxlovid commercially starting late this year or earlier in 2024. The return of government stock will give Pfizer demand certainty, while people on Medicare and Medicaid, as well as those without insurance, will be able to obtain Paxlovid on the government’s dime. Pfizer has a bright future.
Nerd narrative
There's a 50% chance that Covid-19 will be eradicated by March 2088, according to the Metaculus prediction community.