Pfizer falls to its lowest level in 10 years

Pfizer released its sales forecast for 2024 Wednesday. The company expects revenue between $58.5-$61.5 billion next year. This is at least $3 billion less than the original Wall Street projection of $63.17 billion, per Reuters.

Pfizer Provides FullYear 2024 Guidance by Williams Perdomo on Scribd

According to Wall Street data, the company's projections caused shares to fall 9%, hitting their lowest level in 10 years. This happened just a day after it was learned that the pharmaceutical company had reached a $43-billion agreement to buy cancer drug manufacturer Seagen (SGEN.O). Similarly, according to Reuters, Pfizer intends to create a new oncology division.

"Pfizer expects full-year 2024 revenues to be in the range of $58.5 to $61.5 billion, which includes approximately $8 billion in anticipated revenues for Comirnaty and Paxlovid, approximately $3.1 billion in anticipated revenues from Seagen and approximately $1 billion related to the reclassification of Pfizer’s royalty income from Other (Income)/Deductions into the Revenue line. Including the contribution from Seagen and excluding revenues from Comirnaty and Paxlovid, Pfizer expects to achieve full-year 2024 operational revenue growth of 8% to 10%," the company wrote in a statement.

Sales fall for Pfizer's COVID-19 products

The company's numbers have been affected primarily, by the drop in sales of COVID-related products. Back in August, the company issued a report detailing that its second-quarter earnings fell short of analysts' expectations.

In response to the news, the company's CFO, David Denton, said that they were working on a program to make cuts that would focus on COVID-related products. However, it appears that the company's strategy has changed because it expects that sales related to these drugs increase.

COVID vaccine sales fell by at least 83% in the second quarter. Sales of the antiviral treatment Paxlovid fell by 98%.