By Jared S. Hopkins
Pfizer shares rallied after the drugmaker's 2025 guidance met Wall Street expectations, cheering shareholders as the company faces pressure to improve performance.
The company forecast next year's revenue will come in at $61 billion to $64 billion, with sales from its Covid-19 vaccine and drug similar to those of 2024. Analysts polled by FactSet had projected full-year 2025 revenue of about $63 billion.
"I'm very optimistic that '25 will be a year of continuous commercial execution and R&D turnaround," Chief Executive Albert Bourla told analysts.
Pfizer shares rose Tuesday by more than 3%, to top $26.
The stock is down more than 50% since its record high in 2021. Activist investor Starboard Value took a stake in the company in October and called for Pfizer's board to hold management accountable.
In addition to giving guidance Tuesday for next year, Pfizer said it plans $500 million in further cost cuts, after completing a $4 billion cost-cutting program.
Chief Financial Officer Dave Denton said Pfizer was prioritizing paying down debt. He said there was flexibility for dealmaking that could help with long-term growth, but there would be no large transactions until at least 2026.
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(END) Dow Jones Newswires
December 17, 2024 10:08 ET (15:08 GMT)
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