Shares of Pfizer Inc. and other biotech drug makers with exposure to COVID treatments fell in the extended session Friday after Pfizer slashed its full-year outlook due to weaker demand for the Paxlovid pill and more.
The company forecast full-year earnings of $1.45 to $1.65 a share on revenue of $58 billion to $61 billion. And Pfizer said guidance calls for a reduction in expected revenue for COVID treatment Paxlovid of $7 billion. It further foresees a $2 billion reduction in revenue for the Comirnaty COVID vaccine it makes with BioNTech
BNTX,
Pfizer will have to take a $5.5 billion charge for COVID-product inventory write-offs.
Analysts surveyed by FactSet had expect full-year earnings of $3.29 a share on revenue of $65.96 billion.
Pfizer
PFE,
shares dropped more than 7% after hours, following a 2.5% decline to close the regular session at $32.11. Shares of the Dow Jones Industrial Average component are down more than 37% year to date, while the Dow itself
DJIA
is up 1.6%, and the S&P 500 index
SPX
is up 12.7%.
In August, Pfizer stock came under fire when the drug maker reported a drop in earnings because of weaker demand for COVID vaccines and antiviral drugs. Back then, Pfizer forecast full-year earnings of $3.25 to $3.45 a share on revenue of $67 billion to $70 billion.
The news had a far-reaching effect. Shares of BioNTech declined 1.5% after hours, following a 4.9% fall to close Friday at $103.58.
Shares of Moderna Inc.
MRNA,
and Novavax Inc.
NVAX,
also dropped in the extended session following Pfizer’s announcement. Moderna shares fell more than 4% after hours, following a 2.5% decline to close Friday at $98.30, and Novavax shares fell 2.5%, following a 5.4% drop to close at $7.05.