Pfizer shares hit lowest point in more than 10 years — here’s why

Pfizer (PTFE) shares plunged more than 8% in early trading Wednesday to their lowest level in more than a decade after warning that revenue could fall next year and releasing the news. guide The company’s performance fell short of expectations as demand for its COVID-19 vaccines and treatments weakened.

The drugmaker said it expects revenue in 2024 to be between $58.5 billion and $61.5 billion, slightly higher than the $58 billion to $61 billion expected this year. Profit per share is expected to be $2.05 to $2.25. Both were below expectations.

Pfizer said its COVID-19 shot and Paxlovid treatment for the virus will generate $8 billion in sales next year, while sales of those products are expected to be about $12.5 billion this year.

Chief Financial Officer David Denton told analysts that the company does not expect COVID-19 vaccination rates in 2024 to be significantly different from 2023, and Chief Executive Officer Albert Bourla added that Pfizer wanted to create a “good floor” to avoid a similar situation as before. That overestimates demand this year.

The pharmaceutical company noted that it expects sales to reach $3.1 billion in 2024 following its $43 billion acquisition of cancer drug maker Seagen in February. The deal was approved by U.S. regulators this week and Pfizer expects to close tomorrow.

Pfizer’s stock price fell 8.2% as of about 11:15 a.m. ET, and its market value has shrunk by nearly half this year.