Waning concern about COVID-19 among Americans is helping to eroding billions in market value from pharmaceutical giant Pfizer Inc., a recent survey shows.
Pfizer investors triggered a stock sell-off Wednesday, pushing shares down 7.98 percent and wiping away roughly $12.93 billion in value after the company warned it may make less money next year because of static vaccination rates and a continued slowdown in demand for its COVID-19 vaccine and related products.
The drugmaker revised its 2024 revenue forecast to range between $58.5 billion and $61.5 billion, trailing the $62.66 billion analysts projected.
That reduction in revenue forecast is backed by a Kaiser Family Foundation (KFF) survey in November that found public interest in COVID-19 vaccinations is diminishing. Roughly half of U.S. adults indicated they do not plan to receive the latest vaccine (produced by Pfizer-BioNTech and Moderna), which was made available in September. That hesitancy extends to previously vaccinated individuals, with about 17.2 percent (44 million) of Americans age 18 and over having received the updated vaccine.
Pfizer CEO Albert Bourla told investors during an earnings call on Wednesday that its conservative outlook aims to set a reliable baseline and avoid the uncertainty that marked the previous year when Pfizer's estimates overshot actual demand.
According to Pfizer, revenue from COVID-related products is projected to contribute about $8 billion next year, a decrease from this year's expected $12.5 billion.
Newsweek has reached out to Pfizer via email for comment.
The KFF survey found that only about one in five adults has embraced the updated vaccine, with about 17 percent saying they will "probably not" get the new vaccine. According to the KFF, the figure marks a decline in vaccine use and suggests a diminishing reliance on COVID-19 vaccines as a steady revenue source for the company.
To that end, Pfizer's adjusted earnings for 2024 are now targeted at $2.05 to $2.25 per share, falling short of the $3.17 that analysts expected. Amid its challenges, Pfizer is counting on new sales avenues, notably its $43 billion deal for Seagen, a biotech cancer specialist. The acquisition is expected to diversify Pfizer's portfolio and contribute about $3.1 billion in revenues.
The company is projecting operational revenue growth of 8 percent to 10 percent in 2024, excluding COVID-19 products.
Additionally, the company said a new cost realignment program is anticipated to deliver at least $4 billion in savings by the end of next year, potentially helping to regain its pre-pandemic operating margins.
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Aj Fabino is a Newsweek reporter based in Chicago. His focus is reporting on Economy & Finance. Aj joined Newsweek ... Read more
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