Pfizer trims 2023 revenue outlook as profits tumble

Tuesday, August 01, 2023 at 12:44 PM by © AFP 2022

Pfizer cited damage to its North Carolina plant as a factor in its lowered 2023 revenue forecast. Photo: Sean Rayford / GETTY IMAGES NORTH AMERICA/Getty Images via AFP/File
Source: AFP

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Pfizer reported a steep drop in profits Tuesday on much lower Covid-related revenues as it curtailed its full-year sales outlook, in part due to tornado damage to a key manufacturing facility.

Profits in the second quarter were $2.3 billion, down 77 percent as revenues fell 54 percent to $12.7 billion.

Quarterly revenues for Pfizer's Covid-19 vaccine and Paxlovid therapeutic were $1.6 billion, far below the $16.9 billion in the year-ago period.

The drugmaker pointed to a "few near-term individual product revenue" challenges as it trimmed its full-year sales forecast.

These include US approval for a drug combination for prostate cancer and a needed recommendation on the Abrysvo vaccine from the US Centers for Disease Control and Prevention.

Pfizer also cited recent tornado damage to a North Carolina manufacturing facility as a drag on near-term results.

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The tornado slammed Pfizer's Rocky Mount plant on July 19, which accounts for manufacturing nearly 25 percent of company sterile injectables.

Pfizer said most of the damage was to a warehouse, which stores raw materials and finished medicines awaiting release by quality assurance.

The pharmaceutical giant now expects full-year revenue growth of six to eight percent in 2023, excluding Covid programs. That's down one percent from the prior range.

On Covid, Chief Financial Officer David Denton said the environment "continues to evolve rapidly and remains highly unpredictable," according to a company press release.

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

Pfizer said its acquisition of biotechnology company Seagen remains on track. The company is in touch with regulators and expects the deal to close in late 2023 or early 2024.