A Pfizer manufacturing plant, in Newbridge, Ireland, on Feb. 10.Clodagh Kilcoyne/Reuters
Pfizer PFE-N on Tuesday reported lower first-quarter revenue on slowing sales of COVID-19 drug Paxlovid, and said it was expecting $1.7-billion in additional cost savings as it streamlines its manufacturing and R&D operations.
The company, however, reaffirmed its full-year forecast and announced measures to mitigate the impact of potential tariffs on pharmaceuticals by the Trump administration, including shifting some production to the United States.
While the rates and timings of tariffs on the sector are unclear, analysts expect that companies will have to absorb any near-term costs from the same. Washington has launched an investigation into the industry, laying the groundwork for possible levies.
“While we continue to engage and plan for contingencies, we’re focusing day-to-day on what we can do to move our business forward,” CEO Albert Bourla said in prepared remarks.
Shares of the drugmaker, which have fallen 13.1 per cent so far this year, fell about 1 per cent in premarket trading.
Last month, Bourla said Pfizer might move overseas manufacturing to its existing plants in the United States, if required. Pfizer has 10 manufacturing sites and two distribution centres in the United States, employing nearly 10,000 people.
The company also gave an update on its cost-cutting programs, saying it was now expecting about $7.7-billion in savings by the end of 2027.
Revenue from Paxlovid was $491-million for the quarter, compared with analysts’ expectations of $794.3-million, according to LSEG data.
Pfizer had recorded a benefit of $771-million for Paxlovid revenue in the first quarter of 2024.
On an adjusted basis, Pfizer earned 92 cents per share in the latest quarter, compared with analysts’ expectations of 66 cents per share, according to LSEG data.
It reported total revenue of $13.72-billion for the first quarter, compared with analysts’ expectations of $13.91-billion, according to LSEG data.