The U.S. drugmaker said Tuesday that the next few years will be bumpy, starting in 2026, due to lower sales of its COVID vaccine and treatment, price cuts promised to the U.S. government and patent expirations on key drugs.
The pharmaceutical company’s shares fell 3.37% on Tuesday to $25.54 each.
So far this year, Pfizer shares have fallen 3.73 percent. And they have accumulated a drop of just over 50% since the last session of 2022, as demand for vaccines and treatments against COVID-19 decreased, which has left the company behind its competitors in performance.
The drugmaker doesn’t expect to return to revenue growth until 2029 as it works to develop new blockbuster drugs, including obesity treatments it acquired in recent deals.
Its pipeline has not produced a breakthrough drug since it contributed to the development of COVID-19 vaccine Comirnaty and produced COVID-19 treatment Paxlovid earlier in the decade.
The company’s goal is to save more than $7 billion annually through 2027 while trying to control costs, it informed the market.
“These stocks are unlikely to break above their current price range of around 20-something until investors are convinced of a growth trajectory,” said Bernstein analyst Courtney Breen.
will not grow
Revenue for next year is expected to be in the range of $59.5 billion to $62.5 billion, compared with estimates of $61.59 billion.
The projection includes a $1.5 billion drop in revenue from its COVID-19 products starting this year. The company expects a $1.5 billion reduction in revenue due to the loss of exclusivity of certain products in 2026.
The company said it has exceeded its cost reduction expectations in 2025 and is on track to achieve most of the savings next year. It forecasts 4% growth in operating income, excluding COVID products and those that will lose patents.
Pfizer will return to growth in 2029-2030 and this growth will be supported by its acquisitions and its drug portfolio, said its chief financial officer, Dave Denton.
