Pfizer CEO Albert Bourla speaks during a press conference after a visit to oversee the production of the Pfizer-BioNtech Covid-19 vaccine at Pfizer's factory in Puurs, Belgium, April 23, 2021.
John Theis | Reuters
Pfizer It forecast Tuesday that 2025 earnings would be roughly in line with Wall Street expectations, providing some relief to investors after a turbulent year during which it drew criticism from activist hedge fund Starboard Value.
Shares of Pfizer rose about 2% in premarket trading after the drugmaker also said it expects 2025 sales of its Covid-19 vaccine and drug to be consistent with 2024 levels.
The company expects adjusted earnings of $2.80 to $3 per share, compared with analysts' average estimate of $2.88 per share, according to data compiled by LSEG.
Pfizer is reining in costs and shedding non-core businesses to pay down debt as it rebuilds after a sharp decline in sales of its Covid-19 products.
Its shares are down about 12% this year and are trading at less than half their value during the height of the Covid-19 pandemic.
That has left it vulnerable to investor criticism, with Starboard saying in October that Pfizer's management overspent on large acquisitions and failed to produce profitable new drugs from those deals or from internal research and development.
“While we see several assets in Pfizer's pipeline (particularly in oncology) that could make the story more interesting, we believe that further progress…will be necessary to change the current narrative on the stock which will primarily occur in… 2026+,” JPMorgan analyst Chris Schott wrote in a research note.
Pfizer expected 2025 revenues to range between $61 billion and $64 billion, compared to estimates of $63.26 billion.
The company also estimated a loss of nearly $1 billion in revenue from changes to the Medicare Part D prescription program under President Biden's inflation-reduction law.
Pfizer said the addition of new manufacturer rebates and other changes would offset the expected benefits of a $2,000 out-of-pocket spending cap that will be offered to seniors with a prescription drug plan next year.
The company is scheduled to hold a conference call with analysts later today to discuss the outlook.
