Highlight: "Markets in Review" Issue #4

Pfizer Inc., a fall from grace

Wall Street expectations seem to be far too optimistic for the ‘covid vaccine provider’ Pfizer Inc., these days. This comes after the company’s lower than expected 2024 revenue forecast. During the peak of the 2021-2022 pandemic, the company saw profits nearing $66bn, as it dominated the pharmaceutical industry. Though, with 2023 coming to a close, Pfizer is expected to experience a loss of more than $20bn in gross profits alone. This comes with a falling share price of $26.13, at the time of writing, compared to its all time high of $53.73 in late 2021, representing a loss of nearly 50% of its market value.  

In contrast to rivals, including AbbVie, Johnson & Johnson, and Eli Lilly, Pfizer has seen its share price, revenues and gross profit deteriorate. This raised questions from investors about growth prospects of the pharmaceutical giant. The company attempted to address these concerns, with a $4bn cost-cutting programme alongside closing on the Seagen acquisition deal, that was announced earlier in the year. With a poor year-to-date performance, the pharma giant is far from its glory days, and Pfizer may need to find a new flagship product fast if it wants to continue keeping up to its rivals. Could Seagen, this small biotechnology company dedicated to cancer care, be a catalyst for future growth? 

For more information regarding how Pfizer is handling market expectations, you can read Leroy Leo and Michael Erman’s article on Reuters.

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