Pfizer will launch a cost-cutting program if demand for its COVID-19 products keeps underperforming expectations this fall, the U.S. drugmaker said on Tuesday, after sales for the vaccine and the pill slumped during the second quarter.
The company expects 2023 to be a low point for COVID product sales after windfall gains at the peak of the pandemic, and a potential return to growth next year.
Pfizer shares gained 1.6% in morning trading.
Pfizer said on Tuesday it anticipates more clarity for COVID revenue in the second half on a likely rise in infections in the fall season and the U.S. switching to a commercial market for the products from government contracts.
"To that end, if our COVID-19 revenues are less than what we assumed, we are prepared to launch an enterprise-wide cost improvement program," CFO David Denton said.
Sales of the COVID-19 vaccine, Comirnaty, fell 83% to $1.49 billion in the second quarter, but came in above analysts' estimates of $1.40 billion.
Revenue from its antiviral treatment, Paxlovid, tumbled 98% to $143 million, compared with estimates of $1.08 billion.
Pfizer trimmed the upper end of its annual revenue forecast by $1 billion to $70 billion.
The drugmaker is also navigating damage to a warehouse at its Rocky Mount facility from a tornado, a narrower-than-expected recommendation for its RSV vaccine, as well as worries its recently approved cancer drug Talzenna would reach a smaller-than-anticipated patient population.
Meanwhile, Pfizer is preparing for many of its top-selling drugs soon facing competition from cheaper generics and has responded through billion-dollar acquisitions such as the $43 billion deal for cancer-therapy specialist Seagen .
Total revenue for the second quarter fell 54% to $12.73 billion, missing Refinitiv estimates of $13.27 billion.
Excluding items, Pfizer reported a profit of 67 cents per share, while analysts had expected 57 cents.
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