Pfizer shares slump 10% as annual outlook cut

Shares in Pfizer slumped on Wednesday as the US drugs giant said annual revenue and profit would come in below expectations.

Earnings have been boosted in the last two years by sales the Covid-19 vaccine Pfizer makes in partnership with Germany’s BioNTech and its own Paxlovid treatment for the virus, but falling vaccination rates have forced Pfizer to cut jobs and costs in an attempt to save at least $4bn a year.

It also announced an increase of $500m in cost cutting on Wednesday. Annual revenue is now expected be in the range of $58.5bn - $61.5bn compared with the analysts’ average estimate of $63.17bn. Shares were down around 10% on the news.

Pfizer added that it expected to complete the $43bn acquisition of cancer drugmaker Seagen on Thursday.

The company also forecast adjusted profit in the range of $2.05 to $2.25 per share, lower than analysts’ expectation of $3.16.

Reporting by Frank Prenesti for Sharecast.com