With Covid Finally Under Control, Pfizer Loses $88 Billion In Market Share In 12 Months

Pfizer has reportedly experienced a significant loss of $88 billion in market share in just one year.

The pharmaceutical giant had an exceptional 2022, with a record-breaking $100 billion in sales driven by their Covid vaccine and drugs, according to its Q2 2023 earnings report.

However, their success has not continued into 2023 as demand for Covid related products decreases along with serious cases of the virus. The company’s efforts in alleviating pandemic symptoms have resulted in it becoming a victim of its own success.

Shares are currently valued at $35

Currently, the company’s value stands at less than half what it was just two years ago, with shares valued at approximately $35, according to dailymail.co.uk this Sunday, August 6.

The cyclical nature of pharmaceutical giants’ success is not uncommon. Patent expiration often leads to peaks and troughs in drug sales.

Pfizer has faced comparable sales declines in the past with its anti-cholesterol drug Lipitor and erectile dysfunction medication Viagra.

The Wall Street Journal reported on August 6 that the current state of affairs for this company has been worsened by its choice to scale down and become a growth stock.

The New York-based drugmaker made a strategic decision to prioritise higher-growth prescription drugs over slower-growing businesses that provided a stable cash flow before the pandemic.

Omicron shots caused shares to hit an all-time high

Pfizer’s collaboration with BioNTech proved fruitful during the pandemic as they sold billions of their Covid 19 shots. The Omicron variant caused company shares to reach an all-time high of approximately $61 in December 2021.

In early 2023, Pfizer revealed that it anticipated its Covid vaccine to generate $13.5 billion in sales, representing a significant decrease from last year’s earnings of approximately two-thirds.

Paxlovid, a Covid-19 antiviral medication produced by the company is projected to generate approximately $8 billion in sales this year.

This figure represents a decrease of about 58 per cent compared with last year’s revenue. The decline can be attributed to various factors including changes in demand for such drugs due to vaccination efforts and shifts towards other treatments or therapies.

Nonetheless, Paxlovid’s contribution remains significant as it continues providing relief from symptoms associated with Covid while also helping people manage their illness more effectively.

The decline in sales can be attributed to two factors: fewer government contracts being purchased, and a shift towards commercialising anti-Covid drugs.

Additionally, damage caused by a tornado at its North Carolina manufacturing plant could impact future sales according to a company statement.

Pfizer will have a better idea of future demand by the end of 2023

Pfizer stated last week that they will have a better understanding of future demand for their pandemic products by the end of this year when they launch their latest Covid 19 shot.

The company is optimistic about its ability to meet any potential surges in demand with confidence and efficiency. If sales fail to meet expectations the company is prepared for a shift in strategy.

Pfizer CEO Albert Bourla stated that the company was ‘moving post-Covid’. The firm has announced its intention to increase revenue by introducing new drug approvals.

Buying Seagen could generate $10 billion in sales in the next decade

An anticipated acquisition of Seagen by the pharmaceutical giant is expected to generate over $10 billion in sales within the next decade.

This pivot towards anti-carcinogenic treatments signals their commitment towards advancing cancer care and improving patient outcomes. The deal could potentially revolutionise oncology treatment options for patients worldwide.

Pfizer has made significant progress towards achieving its goal of launching 19 new drugs or expanded uses over an eighteen-month period into the first half of 2024. Four medicines have already been approved by the FDA so far this year, putting them more than halfway there.

An experimental multiple myeloma drug called elranatamab is being considered for FDA approval and could potentially generate $1 billion in sales by 2030, according to Jefferies analyst Akash Tewari.