Pfizer has announced its financial outlook for 2025, projecting adjusted earnings per share between $2.80 and $3.00, aligning closely with Wall Street's consensus estimate of $2.88. This forecast has provided some reassurance to investors following a challenging period marked by declining sales of COVID-19 products and critiques from activist hedge fund Starboard Value.
In response to the downturn in COVID-19-related revenues, Pfizer has been implementing cost-cutting measures and divesting non-core assets to reduce debt. The company anticipates that sales of its COVID-19 vaccine and antiviral treatments in 2025 will remain consistent with 2024 levels, excluding a $1.2 billion non-recurring revenue from government purchases of Paxlovid.
Despite these efforts, Pfizer's stock has experienced a significant decline, trading at less than half its value during the peak of the pandemic. This downturn has attracted criticism from Starboard Value, which has accused Pfizer's management of overspending on acquisitions without delivering profitable outcomes from these investments or internal research and development.
Looking ahead, Pfizer forecasts 2025 revenue between $61 billion and $64 billion, in line with analysts' estimates. The company also anticipates a $1 billion revenue impact due to changes in Medicare's Part D prescription program under the Inflation Reduction Act. Additionally, Pfizer expects to achieve an extra $500 million in savings in 2025 through ongoing cost-reduction initiatives.
Analysts suggest that advancements in Pfizer's drug pipeline, particularly in oncology, could enhance the company's prospects, though significant developments are expected post-2026. As Pfizer strives to rebuild investor confidence, its ability to effectively execute its turnaround strategy remains under close scrutiny.
