Long shot
It seems like just yesterday that pharmaceutical company Pfizer, which pioneered one of the first vaccines for the COVID-19 virus, was being lauded as an American hero of the pandemic.
However, in the years since, the company has been plagued by a sales decline, as demand for Covid vaccines continues to diminish. Indeed, revenues only amounted to around $13bn in the last quarter — some 54% less than the $28bn peak seen in Q2 ‘22.
Pfizer shares sunk 7% on Wednesday following news that it expects to make just $8bn from Covid shots in 2024, down from $57bn just 2 years prior, with the company’s market cap. falling to $147bn as of yesterday: a 10-year low for the pharma giant.
Business booster
The drugmaker’s worsening sales outlook has triggered a $4bn cost-cutting effort at the company, up $500k from the previous cutbacks announced earlier this year, including laying off more than 2,000 workers worldwide.
In an effort to combat the Covid product downturn, Pfizer has looked to new treatment avenues to bolster sales; yesterday, it confirmed a $43bn acquisition of oncology drugmaker Seagen Inc., which has 4 FDA-approved cancer drugs under its belt to date. Even so, Pfizer’s botched attempts to develop an obesity pill have left it lagging behind peers like Eli Lilly that have capitalized on the booming weight loss drug market, expected to be worth $100bn by the end of the decade.
