New York (AFP) – Pfizer reported a quarterly loss Tuesday following a large write-down, denting shares as it confirmed 2026 financial targets with lower revenues. The big US drugmaker pointed to another drop in quarterly revenues tied to Covid-19 products, as well as $4.4 billion in asset impairments that were needed “due to changes in development plans and updated long-range commercial forecasts,” Pfizer said in its press release.
Pfizer indicated 20 planned trials in 2026 for pharmaceuticals under development and stated it achieved sales growth in several leading products, including blood-thinner Eliquis, despite competition from generics in some markets. However, investors punished the stock following the earnings announcement, which signaled that the company plans no share repurchases in 2026 as it works to limit its debt while funding a research and development plan intended to offset the hit from lost patent advantages. The negative market reaction also suggested investors may have been hoping for a quicker return on Pfizer’s R&D program than the one implied by the results.
Pfizer reported a loss of $1.6 billion compared with profits of $410 million in the fourth quarter of 2024. Revenues fell two percent to $62.6 billion. Chief Executive Albert Bourla stated that Pfizer’s 2025 “solid” performance provides a “foundation for future growth.” He noted that 2026 “will be an important year rich in key catalysts, including our expectation for approximately 20 key pivotal study starts, and continued strategic investment to maximize our opportunities for industry-leading growth at the end of the decade.”
In the fourth quarter, the drugmaker experienced a 35 percent drop in revenues from the Covid-19 vaccine Comirnaty and a 75 percent decline in sales tied to therapeutic Paxlovid. Since the pandemic, Pfizer has completed acquisitions of oncology drug specialist Seagen and Metsera, known for weight loss products. Pfizer stated that half of the 20 trials in 2026 are for “ultra-long-acting obesity assets” acquired from Metsera.
In prepared remarks released with the results, Pfizer Chief Scientific Officer Chris Boshoff described the range of clinical results to date on anti-obesity products as “encouraging,” but noted that the company was targeting the first of government approvals only in 2028. While Pfizer continued to pay a dividend in 2025, it did not undertake any share repurchases, in line with its plan to pay off debt “in a prudent manner,” the company said.
“Current financial guidance does not anticipate any share repurchases in 2026,” said Pfizer, which anticipates research and development expenses of between $10.5 and $11.5 billion in 2026, having spent $10.4 billion on R&D in 2025. Pfizer projected 2026 revenues of $59.5 to $62.5 billion, a bit below the $62.6 billion from last year. The company’s overall outlook for 2026 was in line with Pfizer’s December projections and includes around a $1.5 billion revenue hit from anticipated generic products coming on line in 2026. Shares dropped 3.2 percent in morning trading.
© 2024 AFP
