Pfizer Forecasts Plunge as COVID Product Demand Dries Up

Pfizer slashed its 2023 revenue forecast by $9 billion due to lower than expected demand for its COVID-19 vaccine and treatment. The company will also take a $5.5 billion inventory write-off.

Pfizer's 2023 adjusted EPS guidance was cut from $3.35 to $1.55. The reductions are driven by waning demand for the COVID vaccine and treatment as the pandemic wanes.

Pfizer plans to implement a cost reduction program to deliver $3.5 billion in annual savings, with $1 billion in 2023. This suggests COVID revenues will remain depressed.

Pfizer traded as high as $60 in 2021 due to COVID product sales. With sales declining, the stock could return to pre-pandemic levels around $30.

Investors should watch Pfizer from the sidelines as the business normalizes from the pandemic boom and bust. There is uncertainty around the stock until the shakeout is complete.