Pfizer shares see major drop in value as demand for booster jabs plummets: 'Covid fatigue setting in'
Pfizer’s earnings have plummeted due to a lack of demand for Covid vaccines
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Pfizer’s shares have fallen after demand for Covid booster jabs plummeted, stock market data has shown, prompting concern about the size of the Covid-19 vaccine and treatment market in the long-term.
On Friday, the company slashed $9billion (£7.4million) in expected sales from its full-year outlook, as it looks for commercial approval of its Paxlovid Covid treatment.
They cut its antiviral Covid treatment by about $7billion (£5.7billion) and its vaccine that they developed with BioNTech by about $2billion (£1.6billion).
The company said it expects full-year earnings of $1.45 (£1.19) to $1.65 (£1.35) per share on revenue of between $58billion (£47billion) to $61billion (£49billion).
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Pfizer also said it would take a $5.5billion (£4.5billion) charge for Covid-product inventory write-offs.
In August, Pfizer’s earnings plummeted due to a lack of demand for Covid vaccines.
However, their full-year outlook predictions were more optimistic, forecasting a full-year earnings of $3.25 (£2.66) to $3.45 (£2.83) a share on revenue of $67billion (£5.4billion) to $70billion (£5.7billion).
Pfizer CEO Albert Bourla said on Monday that around 17 per cent of the US population will get updated Covid vaccines during the current vaccination campaign.
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Yet far below rates seen when vaccines first emerged in the spring of 2021.
"We right now are in the middle of Covid fatigue, where everyone wants to forget about the disease," he said Monday.
Bourla said the company expects this year's demand to be the base rate for future years but that it was still watching the current campaign to be sure.
"Whatever will be the vaccination rate here, it is our expectation [this year's base rate] will become a solid foundation that will be the vaccination rate for the years to come," he said.
The company’s shares are down about 37 per cent this year.
Pfizer CEO Albert Bourla said on Monday that around 17 per cent of the U.S. population will get updated Covid vaccines during the current vaccination campaign.
Reuters
Paxlovid, Pfizer's anti-viral medication to treat the coronavirus disease
Reuters
Pfizer is currently seeking to switch Paxlovid, an anti-viral medicine to treat coronavirus, to a commercially marketed version.
They said that Medicare, Medicaid and uninsured patients will receive Paxlovid free of charge throughout 2024.
Moderna, the company’s main competitor, said on Monday that it was currently comfortable with its outlook for demand.
In a statement released today, Moderna maintained its current revenue forecast of $6billion (£4.9billion) to $8billion (£6.5billion) for its Covid vaccine for 2023.
A BioNTech spokesperson on Monday declined to comment on the company's current 2023 outlook.