Factbox-How Pfizer is fortifying for growth beyond COVID products

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(Reuters) – Pfizer has turned to multi-billion deals, an internal restructuring and a massive cost-cutting program as the U.S. drugmaker battles a steep fall in demand for its COVID-19 products.

The company forecast Wednesday that revenue from its COVID-19 vaccine and treatment will be $8 billion in 2024, a far cry from $57 billion in 2022.

A look at the company’s efforts to drive growth in a post-pandemic world:

OFFERS

In March, Pfizer announced a $43 billion acquisition of drugmaker Seagen to integrate four approved cancer therapies. The deal is expected to close later this week and add $3. 5 billion to sales next year.

Last year, the company struck an $11. 6 billion deal with migraine drugmaker Biohaven Pharmaceutical Holding and bought Global Blood Therapeutics for $5. 4 billion, adding sickle cell drug Oxbryta to its portfolio.

Over the past two years, he has also invested in shares of mobile therapeutics developer Caribou Sciences and Akero Therapeutics, a developer of fatty liver drugs.

COST REDUCTIONS

Pfizer has announced a cost-cutting program that aims to save $4 billion a year through the end of 2024. It’s a one-time charge of about $3 billion and includes layoffs.

The company cut 500 jobs at its Sandwich in Kent, UK, in November as part of its cost-cutting plan.

RESTRUCTURING

On Tuesday, Pfizer announced it would split its oncology out-of-home advertising business into two divisions, one targeting the U. S. and the other targeting the rest of the world.

NEW APPROVALS

The US fitness regulator in March approved the company’s migraine nasal spray and acquired Biohaven Pharmaceutical for $11. 6 billion.

Its vaccine to prevent pneumococcal disease in children ages six weeks to 17 years was approved in the United States in April.

Pfizer’s respiratory syncytial virus (RSV) vaccine was also approved for seniors in May and for pregnant women in August. Morningstar analyst Damien Conover estimated peak annual sales of the drug at about $2 billion.

PIPE

The mRNA vaccine from Pfizer and its German partner BioNTech, aimed at preventing influenza and COVID-19, generated a strong immune reaction against strains of the virus in an early- to mid-stage trial.

However, earlier this month, Pfizer said it would advance its twice-daily edition of danuglipron, an oral weight-loss drug, to late-stage studies. You will continue to work on an edit once a day.

(Reporting via Manas Mishra and Khushi Mandowara in Bengaluru; editing by Sriraj Kalluvila)

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