Pfizer’s COVID product sales to top $50 billion this year, investors want more

Pfizer Inc mentioned on Tuesday it expects 2022 gross sales of its COVID-19 vaccine and antiviral capsule to prime $54 billion, however that fell wanting lofty Wall Avenue estimates and its shares fell practically 5%.

Though Pfizer raised its forecast for the vaccine, developed with Germany’s BioNTech SE, by $1 billion to $32 billion, the drugmaker cautioned that closing gross sales for the 12 months might not prime that determine.

Final 12 months, the corporate elevated its COVID vaccine gross sales forecast a number of instances because it signed extra offers to provide it around the globe.

Analysts have forecast gross sales of $33.79 billion for the vaccine in 2022, in keeping with Refinitiv information.

The corporate, nevertheless, mentioned its forecast for oral COVID-19 antiviral therapy Paxlovid may improve. Pfizer mentioned it expects $22 billion in 2022 gross sales, in contrast with estimates of $22.88 billion.

The corporate expects to supply not less than 120 million programs of Paxlovid, a two-drug routine meant to be taken at dwelling. Pfizer is promoting the therapy to the USA at round $530 a course.

Total, Pfizer expects gross sales of $98 billion to $102 billion for the 12 months, additionally beneath estimates of $105.48 billion.

“Wanting ahead is not so good as wanting again for Pfizer now and that’s the reason (the inventory value) is down on a considerably respectable report,” mentioned Dennis Dick, a proprietary dealer at Shiny Buying and selling LLC.

The outlook, nevertheless, pointed to a second straight 12 months of file gross sales for the New York-based drugmaker.

The corporate reported $36.8 billion in gross sales of the COVID-19 vaccine in 2021.

JP Morgan analyst Chris Schott in a analysis word mentioned it’s unclear whether or not gross sales from Pfizer’s COVID-19 merchandise are sustainable long run. Pipeline improvement and capital deployment shall be key for the drugmaker to outperform expectations, he mentioned.

Pfizer mentioned it had begun engaged on a next-generation model of Paxlovid, approved to deal with high-risk COVID-19 sufferers.

Paxlovid carried out considerably higher in its medical trials than Merck and Co’s rival capsule with about 90% efficacy versus 30%.

However Pfizer should want an improved model of Paxlovid, in keeping with Davinderpreet Mangat, senior analyst at Informa Pharma Intelligence.

“The door is barely open, nonetheless, for COVID antivirals,” Mangat mentioned. “Medication from different corporations might be able to surpass Paxlovid, much like how Paxlovid surpassed Merck’s drug.”