Pfizer lowers its revenue forecast for 2023 as earnings decline

Due in part to tornado damage to a crucial manufacturing site, Pfizer reported a sharp reduction in profitability on considerably lower Covid-related revenues and reduced its full-year sales projection on Tuesday.

Revenues dropped by 54% to $12.7 billion in the second quarter, which resulted in a 77 percent decline in profits to $2.3 billion.

Pfizer’s Covid-19 vaccination and Paxlovid medication generated $1.6 billion in quarterly sales, a significant decrease from the $16.9 billion in the same quarter last year.

The drugmaker cut its full-year sales projection, citing “a few near-term individual product revenue” issues.

These include the requirement for the US Centers for Disease Control and Prevention to promote the Abrysvo vaccination and the US approval of a medication combination for prostate cancer.

Additionally, Pfizer pointed to recent tornado damage to a manufacturing facility in North Carolina as a hindrance to near-term performance.

On July 19, a tornado struck Pfizer’s Rocky Mount facility, which produces close to 25% of the company’s sterile injectables.

According to Pfizer, a warehouse that houses raw materials and completed pharmaceuticals waiting to be released by quality assurance sustained the majority of the damage.

With Covid programs excluded, the multinational pharmaceutical company now projects full-year sales growth of six to eight percent in 2023. That represents a 1% decrease from the previous range.

The climate “continues to evolve rapidly and remains highly unpredictable,” according to Covid’s Chief Financial Officer David Denton, according to a news release from the company.

“In spite of this uncertainty, the company is maintaining its focus on ensuring successful fall vaccinations during the respiratory infection season,” Denton added.

Pfizer stated that the acquisition of Seagen, a biotechnology company, is still on schedule. The company anticipates the purchase to close in late 2023 or early 2024 and is in contact with regulators.

In pre-market trade, shares of Pfizer decreased 1.2 percent to $35.64.