(New York) The American pharmaceutical giant Pfizer published forecasts for 2024 on Wednesday including its acquisition of the biotech Seagen, which should be effective on Thursday, disappointing the markets which anticipated better.
Its net profit per share on a comparable basis – a benchmark for the markets – will be weighed down by the integration of the company specializing in oncological treatments.
It should settle between 2.05 and 2.25 dollars in 2024, compared to 2.45 to 2.65 dollars previously anticipated, Pfizer said in a press release, specifying that the acquisition of the biotech would weigh up to about 40 cents per share.
It is expected for 2023 between 1.45 and 1.65 dollars.
On the other hand, its annual turnover should increase in particular by a contribution of 3.1 billion thanks to Seagen to fall into a range of 58.5 to 61.5 billion dollars.
It previously forecast 54.5 to 57.5 billion for 2024 and 58 to 61 billion for the current financial year.
Its operating profit should increase by 8% to 10% including Seagen, but excluding currency effects and excluding the anti-COVID-19 range (Cominarty vaccine and Paxlovid drug).
This financial communication greatly displeased the markets, because it was lower than their expectations: Pfizer’s stock fell by almost 8% around 2:30 p.m. (Eastern time) on the New York Stock Exchange.
“These forecasts are disappointing, particularly as they include revenue from the Seagen acquisition,” commented Neil Saunders, director at Globaldata.
“The result, especially on a per share basis, appears soft and has disappointed the market. This may be to limit expectations, but, with the cost savings program, investors were expecting more impactful forecasts,” he added.
Integration
Pfizer announced on March 13 the purchase of the biotech for $43 billion, financed by debt and its cash flow.
He said Tuesday that it should be effective Thursday, thanks to the expiration of deadlines linked to antitrust measures and regulatory green lights.
“I am delighted to mark this exciting moment for Pfizer and for the fight against cancer,” commented Albert Bourla, boss of Pfizer, during an audio conference with analysts on Wednesday.
The giant published record results in 2022 thanks to Comirnaty – developed with the German laboratory BioNTech – and Paxlovid.
But he warned that this windfall would dry up – hence his choice to diversify into oncology – which came to fruition beyond his expectations.
It announced on October 13 a charge for depreciation of its anti-COVID-19 stocks in the third quarter equivalent to 5.5 billion dollars, including 4.6 billion for Paxlovid.
For 2024, Pfizer anticipates around $8 billion in sales from Cominarty (around $5 billion) and Paxlovid (around $3 billion).
“We do not expect any fundamental change in COVID-19 vaccination or infection rates in 2024 compared to this year, but we have set our sales forecasts for Cominarty and Paxlovid lower,” David said. Denton, Pfizer’s chief financial officer, to analysts.
Sel Hardy, analyst at CFRA Research, noted forecasts “much lower than our initial expectations” which targeted more than 8 billion in sales for Cominarty and nearly 5 billion for Paxlovid.
According to him, the group’s turnover growth over one year “remains rather modest”.
Seagen has developed targeted therapies, with the aim of targeting cancer cells with greater precision, thus reducing side effects, a promising technology.
At least four of its treatments have already been approved by American authorities.
This acquisition “doubles the size of Pfizer’s products in development in oncology and programs close to completion,” noted Mr. Bourla, stressing that one in three people in the world will suffer from cancer in their life. life.
“We are confident that this is the ideal partner for Pfizer. Together, we will accelerate the next generation of potential cancer breakthroughs,” he continued.
Pfizer also announced on Tuesday a new commercial structure which should come into force on 1er January, notably with the creation of a Pfizer Oncology Division branch.
His cost reduction program should reach $4 billion net per year, $500 million more than planned in August, he said on Wednesday.
“This puts us on a path that should potentially allow us to regain our pre-pandemic operating margins,” underlined Mr. Bourla, affirming that “Pfizer’s product portfolio remains strong”.