Cost-saving program ‘will touch all parts of the business’ but won’t affect Seagen acquisition, Pfizer says
- Pfizer reassures investors about cost-cutting program to repair underwhelming COVID-19 product sales
- Cost reductions expected to deliver savings of at least $3.5 billion
- Program will not impact planned acquisition of Seagen Inc.
- Pfizer executives suggest low uptake of latest COVID-19 vaccines as conservative baseline for future vaccination rates
- Peak of anti-vaccination rhetoric observed
- Pfizer slashes $9 billion from full-year revenue guidance
- Analysts express concerns about management credibility
- Pfizer hopeful that combined respiratory vaccines in pipeline could drive up vaccination rates
- 2024 net operating expenses expected to fall by $3.5 billion
- Investors find short-term comfort in Pfizer’s update as shares rebound
Pfizer seeks to reassure investors about its ability to cut costs and recover from underwhelming COVID-19 product sales. The company announced a cost-cutting program that aims to save at least $3.5 billion and will affect all parts of the business. Pfizer’s CEO acknowledges the peak of anti-vaccination rhetoric but believes that those who value protection and treatment will continue to get vaccinated. The company recently reduced its full-year revenue guidance by $9 billion, leading to concerns about management credibility. However, Pfizer remains hopeful about the potential of combined respiratory vaccines to increase vaccination rates. Despite the challenges, investors find some comfort in Pfizer’s update as shares rebound.
