Pfizer Inc. (NYSE:PFE) has cut its full-year revenue guidance by $9 billion due to slower than expected sales of its COVID-19 products, according to a statement made on Monday. The pharmaceutical giant also revised its earnings per share from $3.25-$3.45 to $1.45-$1.65. CEO Dr. Albert Bourla attributed the lackluster sales to pandemic fatigue and rising anti-vaccine sentiment, which have led to cautious projections for future vaccination rates.
In response to the disappointing performance, Pfizer has launched a cost-saving strategy that aims to save $3.5 billion across all sectors and locations, as announced by CFO Dave Denton on Monday. This move is not anticipated to affect Pfizer's impending acquisition of Seagen Inc., which is scheduled for completion in late 2023 or early 2024.
Despite the setbacks, the company remains positive about its combined respiratory vaccines targeting COVID and flu, which are expected to boost future vaccination rates.
The revised financial outlook led BMO (TSX:BMO) Capital Markets' analyst Evan David Seigerman to downgrade his price target for Pfizer shares from $44 to $33 on Monday. Despite this, Pfizer continues to navigate the challenges presented by the current health crisis with strategic cost-saving measures and a focus on future vaccine developments.
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