A pharmaceutical giant has witnessed its stock outlook falter going into 2023.
Pfizer Inc shares have fallen 15% over the past month, eliminating a whopping $43 billion from the stock’s market cap.
The company forecasted Tuesday it will only make $13.5 billion in vaccine sales this year, which marks a 64 percent drop from 2022. Analysts had previously predicted the forecast would amount to $16 billion, according to Zerohedge.
Pfizer CEO Albert Bourla lamented Tuesday that 2023 will be a “transition year” for the pharmaceutical industry leader.
Bourla noted that demand for vaccines and other COVID-19 products is lowering. Pfizer anticipates demand is faltering due to “fewer people” being “expected to receive their primary doses, and for the most part only those who are older or at higher risk are expected to continue receiving more than one booster per year.”
Going into 2023, Pfizer has predicted revenue will drop 30 percent compared to 2022. After predicting 31 percent of the United States population would receive the COVID-19 vaccine in 2023, Pfizer believes just 24 percent will receive the vaccine this year.
Wall Street analysts did not seem shocked by the revelations. Mohit Bansal, a Wells Fargo analyst, said the 2023 outlook “was not a huge surprise” to investors and that “the guidance for the most part came in line with our expectations.” Bansal believes there is a lowered demand for Covid products.
Bloomberg’s John Murphy wrote how the 20% lower-than-expected forecast “is largely attributable to about $2 billion of incremental SG&A and R&D expenses as the company launches 19 new drugs and indications in the next 18 months.”
Social media users celebrated the Pfizer news. “Surprise surprise. Seems that most sane people have realized it wasn’t as bad as it was advertised. Which is funny because they pushed yearly or bi-annual boosters,” one Twitter user wrote.
“That’s why they might be tempted to research for more dangerous COVID strains…,” another added, referencing a recent Project Veritas exposé.
Stay tuned to National File for any updates.