Pfizer Will Cut $ 7.7 Billion By 2027

The gravy train has ended at Pfizer, so they are cutting their operations to match revenues:

https://www.reuters.com/business/healthcare-pharmaceuticals/pfizer-misses-quarterly-sales-estimates-covid-treatment-revenue-falls-2025-04-29/

Pfizer leans on cost cuts to offset falling revenue
By Bhanvi Satija and Michael Erman - April 29, 2025

Summary

*   Pfizer posts mixed first-quarter results, maintains annual forecast
*   COVID vaccine sales better-than-expected, while sales of antiviral treatment decline
*   Expects to save $7.7 billion in costs by end of 2027

April 29 (Reuters) - Pfizer (PFE.N) said on Tuesday it would generate $1.7 billion more in savings from cost cuts to its manufacturing and research operations, highlighting its operational efficiency even as it reported lower first-quarter revenue due to declining sales of its COVID-19 treatment Paxlovid.

Chief Executive Albert Bourla, speaking on a conference call with investors, said the drugmaker's story over the next three years would not be one of strong revenue growth, given looming patent expirations on top products, but rather one of earnings growth. The company reaffirmed its full-year forecast, and shares were up around 3.6% in midday trading

Pfizer also said it had measures in place to mitigate the impact of potential tariffs on pharmaceuticals by the Trump administration, including possibly shifting some production to existing facilities in the United States.

"We have huge manufacturing capacity right now in the U.S., particularly for everything that is injectable," Bourla said. "If there is a need, it's clearly there, and without the need to build new facilities."

Pfizer has 10 manufacturing sites and two distribution centers in the United States, employing nearly 10,000 people.

While the rates and timing of tariffs on the pharma sector are unclear, analysts expect that companies will have to absorb any near-term costs if they are imposed. Washington has launched an investigation into the industry, laying the groundwork for possible levies.
The company said it now expects about $7.7 billion in savings by the end of 2027 from its cost-cutting programs.

That includes an additional $500 million in R&D savings, which at least two investors said could reflect Pfizer's recent decision to stop development, opens new tab of its experimental weight-loss pill danuglipron.

LEANING ON COST SAVINGS

"The cost savings are real, it does help drive better bottom line performance," said Brian Mulberry, portfolio manager at Zacks Investment Management, which owned 2.44 million Pfizer shares at the end of 2024. "We just want to know where that top-line growth is going to come from."

Not from COVID antiviral Paxlovid, apparently. Sales of the two-drug treatment were $491 million, well short of analysts' already diminished expectations of $794.3 million, according to LSEG data. Analysts significantly cut their Paxlovid sales expectations in recent weeks due to a relatively small winter wave of COVID-19 in the U.S.

On an adjusted basis, Pfizer earned 92 cents per share in the first quarter, topping analysts' expectations by 26 cents, helped by cost cuts and a lower tax rate.

Despite the earnings beat, Pfizer is still forecasting a full-year adjusted profit of $2.80 to $3.00 per share on revenue of $61 billion to $64 billion.

CFO David Denton said Pfizer was "currently trending toward the upper end" of its profit forecast.

Revenue in the quarter fell 8% from a year ago to $13.72 billion and missed analysts' expectations of $13.91 billion.

Potential tariffs could add to existing pressure for Pfizer. Investors have been pushing the company to bring new drugs to market that could make up for revenue likely to be lost from some top-selling medicines nearing the end of patent protection.

Zacks' Mulberry said the company has done well at becoming more productive on the manufacturing side. "That's where they're finding a bulk of the savings at this point," he said, "but I don't see the next kind of really big pop in revenue."

First quarter sales of Padcev and Adcetris, acquired from Seagen, came in below estimates.

Even the drugs that outperformed Wall Street expectations in the first quarter face headwinds.

Sales of its heart disease drug, sold under the brand names Vyndaqel and Vyndamax, were $1.49 billion, above estimates of $1.29 billion. But the company said it is already seeing the impact of new competition, which it expects to continue through the year.

Pfizer's vaccine business could also face greater regulatory scrutiny under the new Health Secretary Robert F. Kennedy Jr., a longtime vaccine skeptic.

COVID vaccine Comirnaty, which Pfizer makes with German partner BioNTech (22UAy.DE) brought in sales of $565 million. Analysts were expecting $331.7 million for the shot in the first quarter.