Pfizer (PFE) on Friday lowered its 2023 earnings and revenue forecasts to account for changes in its supply agreement for Paxlovid with the US government.
The revenue guidance was lowered to $58 billion to $61 billion from $67 billion to $70 billion previously, and full-year adjusted earnings per share are expected at $1.45 to $1.65 compared to $3.25 to $3.45 previously, the company said.
Paxlovid is an oral COVID-19 medicine that was granted emergency use authorization by the US Food and Drug Administration in 2021 and a full nod in May 2023.
In a change announced Friday, the US government is returning an estimated 7.9 million treatment courses of the emergency use authorized-labeled Paxlovid which will result in a non-cash revenue reversal of $4.2 billion, the company said.
The lowering of the financial guidance reflects those changes, as well as a delay in the commercialization of Paxlovid to January from the second half of 2023 and lower-than-expected vaccination rates for COVID-19, which impact the sales of Pfizer’s Comirnaty.
Additionally, Pfizer announced a cost-cutting program to save at least $3.5 billion. Of the total, $1 billion is expected to be realized in 2023 and a further $2.5 billion is expected in 2024.