Why Is US Pharma Giant Pfizer Stock Trading Lower Today?

Author: Vandana Singh | December 13, 2023 08:50am

Pfizer Inc (NYSE:PFE) provided its full-year 2024 guidance, which includes the expected financial impact from the Seagen Inc (NASDAQ:SGEN) transaction.

On Tuesday, Pfizer said it received all regulatory approvals to close the deal on Thursday, about nine months after announcing the acquisition.

For FY24, the pharma giant expects revenue of $58.5 billion-$61.5 billion, including the expected contribution from the Seagen acquisition versus the consensus of $63.17 billion.

The company anticipates approximately $8 billion in revenues for its COVID-19 products, Comirnaty and Paxlovid. Seagen expects to contribute approximately $3.1 billion in revenues.

Pfizer expects FY24 operational revenue growth of 8%-10%, including Seagen contribution and excluding Comirnaty and Paxlovid Revenues, and 3%-5% excluding both Seagen contribution and Comirnaty and Paxlovid revenues.

The company forecasts FY24 adjusted diluted EPS guidance of $2.05-$2.25, including the expected impact of the Seagen acquisition, compared to the consensus of $3.17.

Pfizer says that the enterprise-wide cost realignment program is expected to deliver annual cost savings of at least $4 billion, an incremental $500 million versus the mid-point of guidance provided in August.

Investors reacted after Pfizer released topline data from the Phase 2b trial investigating its oral weight loss drug danuglipron (PF-06882961) in adults with obesity and without type 2 diabetes. 

The study met its primary endpoint, demonstrating a statistically significant change in body weight from baseline, but danuglipron was tied to “high rates” of mild gastrointestinal side effects, leading to more than half of the patients across all dose groups dropping out from the trial. 

Price Action: PFE shares are down 6.86% at $26.65 during the premarket session on the last check Wednesday.

Posted In: PFE SGEN