Survey carried out at the request of “Poder360” shows that the pharmaceutical company was one of those that failed to profit the most with the end of the pandemic
A Pfizer intends to reduce its expenses by around US$ 1.5 billion by the end of 2027. The information appears in the description of a new multi-year program sent on Wednesday (May 22, 2024) by the pharmaceutical company to the SEC, the Securities and Exchange Commission from United States.
In the document (completein English – PDF – 129 kB), Pfizer declared that the plan seeks to reduce “cost of products sold” by the pharmaceutical company. The program “will cover several years and should include [melhoria em] operational efficiencies, network structure changes and product portfolio improvements”.
The reduction in expenses is part of the 1st phase of the program, focused on “in operational efficiency”. According to Pfizer, some of the changes “should start to be carried out in 2025”.
The pharmaceutical company said it will register one-time charges in this 1st phase. They are generally related to termination and implementation costs, and will have a value of approximately US$1.7 billion. “These costs will be recorded mainly in 2024, with cash disbursements expected in 2025 and 2026,” Pfizer said.
The earnings of the 10 largest pharmaceutical companies went from US$135 billion in 2022 to US$99 billion in 2023. The factor that most contributed to the 27% drop was the reduction in sales of vaccines and medicines against Covid.
Pfizer had the biggest drop
Pfizer was one of the pharmaceutical companies that developed an anti-covid vaccine and sold it to countries around the world, including Brazil. The company also owns the medicine Paxlovid, used to treat the disease.
Survey by Elos Atya Consultoria, carried out at the request of the Power360shows that, in absolute values, the biggest drop in profitability was from Pfizer.
The world’s largest pharmaceutical company made US$31 billion in profit in 2022. The company’s record profitability was due to the sale of products against Covid. After the health crisis passed, however, the pharmaceutical company’s profit fell to US$2 billion in 2023.
The company’s revenues rose from US$100 billion in 2022 to US$58.5 billion. In note (complete – PDF- 110 kB) sent to Power360 in February, the company said the reduction in revenue was “exclusively related to covid products”. Read more about the subject in this text.
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