By Paul R. La Monica, CNN
Pfizer generated nearly $57 billion in combined sales last year through its Comirnaty Covid-19 vaccine and Paxlovid antiviral pill. This represents only about 60% of the company’s overall profit by 2022. But the boom is over.
Pfizer told Wall Street on Tuesday that it expects Covid-related sales to fall to $21. 5 billion this year. . . According to Wall Street forecasts. Pfizer shares rose despite the news. BioNTech, which partners with Pfizer to manufacture and sell the vaccine, also rose about 1%.
But a big component of the challenge for Pfizer, as well as vaccine rival Moderna, is that public fitness agencies already had a good enough source of vaccines and pills to prevent the spread of Covid and treat those who contract the virus.
The company no longer considers any source of revenue for China’s Paxlovid after April 1, as the Chinese government removed the antiviral tablet from its list of remedies eligible for reimbursement under its national insurance program.
Pfizer noted that it now plans to sell just $13. 5 billion of its vaccine and $8 billion of the Paxlovid tablet this year. Wall Street expected vaccine profits of $14. 4 billion and $10. 3 billion from Paxlovid by 2023, according to estimates tracked through Refinitiv.
Pfizer reported Comirnaty sales of $37. 8 billion a year and $18. 9 billion in revenue from Paxlovid.
Pfizer said in its earnings report that sales of Covid products are expected to increase in 2024 “after reaching a low point in 2023 due to the important government source that was had to start the year. “
However, as the world adapts to the fact that Covid is going to disappear, Pfizer will look for blockbuster new drugs.
“We focus on what’s next. As we look ahead to 2023, we plan to roll back to set records, with potentially the most new product launches and indications we’ve had in such a short time,” said Pfizer Chief Executive Officer Albert. Bourla said in the earnings press release.
Pfizer has made a number of acquisitions in recent years to win promising new drugs. It spent about $25 billion to buy Biohaven Pharmaceutical, Arena Pharmaceuticals and Global Blood Therapeutics.
Pfizer now has several anti-cancer and inflammatory drugs in its portfolio as an opposite vaccine to respiratory syncytial virus (RSV).
But Wall Street is getting impatient.
Pfizer’s inventories have fallen more than 15% in 2023, following a 13% drop last year. Inventory increased more than 60% in 2021 due to strong sales of its vaccine.
El-CNN-Wire™