Pharmaceutical powerhouse Pfizer sent ripples through the global vaccine and treatment market this Monday with its revised revenue projections for the year. Pfizer announced a staggering reduction in its annual sales estimates for both its antibody treatment, Paxlovid, by nearly $7 billion, and the COVID-19 vaccine, developed in collaboration with German firm BioNTech SE, by close to $2 billion.
In contrast, Pfizer’s closest competitor, Moderna Inc., expressed confidence in sustaining demand, despite experiencing a dip in sales. During a press conference, Pfizer’s CEO, Albert Bourla, acknowledged a prevailing “COVID fatigue” within the United States, as public focus on the disease wanes, leading to a lower-than-anticipated 17% of the population opting for an updated vaccine this year. Bourla indicated that this rate is poised to serve as the new baseline for forthcoming years. However, the company remains vigilant in light of the pandemic’s unpredictable nature.
Following the announcement, Pfizer’s stock experienced a notable upswing of 3.6%. In Frankfurt, BioNTech witnessed a sharp decline of 7.3%, while Moderna registered a 2.8% drop in New York. Moderna, steadfast in its $6-$8 billion revenue forecast for the COVID vaccine in 2021, expressed surprise at Pfizer’s substantial reduction, which surpassed industry expectations.
Data from the Location Securities and Exchange Platform (LSEG) unveiled a challenging year for Pfizer, with shares down by 37% year-to-date, and a valuation at 9.8 times its 12-month forward earnings projections. Conversely, BioNTech and Moderna displayed greater resilience, trading at approximately 26.7 and nearly 25 times their respective forecasts.
Pfizer and BioNTech disclosed their intent to incur non-cash charges of $5.5 billion and up to 900 million euros ($947 million) respectively, attributing these costs to inventory write-offs associated with the vaccine and treatment.
The adjusted revenue projections by Pfizer underscores the evolving landscape of the pharmaceutical industry and highlights the need for strategic adaptability in the face of unprecedented challenges. Although Moderna and Pfizer continue to lead the charge in the COVID vaccine race, the future outlook for the market remains shrouded in uncertainty.
Source: Reuters
