By Sabela Ojea


Pfizer is launching a multi-year cost-cutting plan as it slashes its revenue expectations for the year due to lower sales related to Covid-19.

The healthcare giant on Friday guided for revenue of $58 billion to $61 billion, down from a prior outlook of $67 billion to $70 billion.

It also guided for adjusted earnings per share of $1.45 to $1.65, down from a prior range of $3.25 to $3.45.

The company said it is reducing its expectations for full-year revenue coming from its Covid-19 vaccine Comirnaty by $2 billion due to lower-than-expected vaccination rates.

Pfizer also expects to end the year with lower revenue for its Covid-19 pill, Paxlovid, by about $7 billion.

As a result, Pfizer is targeting savings of at least $3.5 billion by the end of 2024, a restructuring plan that will come with one-time severance and implementation costs of $3 billion.

"As we gain additional clarity around vaccination and treatment rates for Covid, we will be better able to estimate the appropriate level of supply to meet demand and continue to address any ongoing public health needs," Chief Executive Albert Bourla said.


(END) Dow Jones Newswires

10-13-23 1725ET