Pfizer Shares Dropped to Their Lowest Level in Over 10 Years—Here’s Why

Pfizer (PFE) shares tumbled over 8% in early trading Wednesday to their lowest level in more than 10 years after warning revenue could decline next year and releasing guidance below forecasts as demand for its COVID-19 vaccines and treatments wanes.

The drug maker indicated it expects 2024 revenue to be in a range of $58.5 billion to $61.5 billion, up slightly from this year’s outlook of $58 billion to $61 billion. It projects profit of $2.05 to $2.25 per share. Both were short of estimates. 

Pfizer indicated that its COVID-19 shot and Paxlovid treatment for the virus will generate $8 billion in sales next year, versus the approximately $12.5 billion it expects to make on those products this year.

CFO David Denton told analysts the company doesn’t anticipate COVID-19 vaccination rates in 2024 will be significantly different from 2023, and CEO Albert Bourla added that Pfizer wanted to create a “good floor” so as to avoid overestimating demand, as it did this year. 

The pharmaceutical firm noted it projects $3.1 billion in 2024 sales from its $43 billion acquisition of cancer drug maker Seagen in February. That deal was approved by U.S. regulators this week, and Pfizer expects it to close tomorrow.

Shares of Pfizer were down 8.2% as of about 11:15 a.m. ET and have lost close to half their value this year.