Shares of other vaccine makers impacted by Pfizer’s reduced COVID outlook

Shares of other vaccine makers impacted by Pfizer’s reduced COVID outlook

CompaniesBioNTech​ AGFollowBioNTech ‌SEFollowModerna ‌IncFollowShow more companiesOct ‍16 (Reuters) – Pfizer (PFE.N) set​ off a fresh⁤ round of concern about the​ size of the U.S. COVID-19 vaccine ⁢and treatment market⁣ in the long‍ term, driving down shares ⁣on Monday of ‍its German⁣ partner ‍BioNTech (22UAy.DE) and smaller rival Moderna (MRNA.O).Vaccine makers are⁢ depending on the U.S. market⁣ as‌ many countries have more limited yearly campaigns for giving ‌updated shots. ⁣For ⁢BioNTech,⁣ Moderna, and Novavax‍ (NVAX.O), COVID vaccines remain‌ their only approved products.BioNTech ⁣shares ⁣dropped 7.2% in Frankfurt trading while Moderna was down ⁤5% and shares⁤ of Novavax (NVAX.O), whose new shot is only approved in ‍the⁢ U.S., were off 7%‍ in New York.Shares of Pfizer were up nearly 5%, however, buoyed by a $3.5 billion cost-cutting‍ plan the drugmaker announced late ⁤on Friday alongside its new COVID sales outlook.Pfizer reduced its full-year forecast for sales of its antiviral COVID treatment⁤ Paxlovid by about ​$7 billion, and for the vaccine it developed with BioNTech ‌by about $2 billion due⁣ to ⁢a ‍plunge in use ‍of pandemic-related‍ products. ⁤It said it would make cuts this year and next and take⁤ a ‌write-down.On an early Monday call with analysts, Pfizer CEO Albert Bourla said he expects around 17% of⁤ the U.S. population will get updated COVID shots during the current vaccination campaign,‍ in‌ line⁤ with last year,​ but far ⁢below rates seen when vaccines first ⁤emerged in ‍the ⁤spring⁣ of 2021.Going ⁤forward, Bourla⁢ said the⁣ company expects this year’s demand to⁣ be ​the base rate but it was still watching the current campaign to be sure.The U.S. ⁢is⁤ “in the middle of COVID fatigue, where everyone‌ wants to forget about the disease,” ⁣he said.Moderna, in a ‍statement on‍ Monday, maintained its current revenue forecast​ of ⁣$6 billion to $8 billion for⁢ its COVID vaccine for 2023.Leerink analyst ⁢Mani Foroohar, ‍who ⁢has an “underperform” rating on Moderna,⁢ said‍ it ⁣is ⁤difficult to ⁣have confidence in the⁤ company’s market⁤ forecast given the pace of vaccinations. So far ‌this⁤ fall, about ‌7 million of the updated ‍COVID shots have been given in ‍the U.S.Foroohar said he ‌is concerned with ‌Moderna’s rate of spending and that the drugmaker is at risk of ending this year with less than $10 billion of cash on its balance sheet, adding that it may need to increase cost cutting.Jefferies analyst Michael Yee said Pfizer’s new COVID outlook implies lower vaccine sales for Moderna than it had forecast.Moderna was not⁤ immediately available for comment.BioNTech, which relies on <a href="https://news.ad-astra.icu/shares-of-other-vaccine-makers-impacted-by-pfizers-reduced-covid-outlook.html" title="Shares of other vaccine makers impacted by Pfizer's reduced COVID outlook”>vaccine-related profit-sharing payments from Pfizer for much of‌ its revenue, said it would​ take ‌a ⁤write-down of up to 900 million euros⁣ ($947 million), the same size charge Pfizer announced for it⁣ on Friday.BioNTech added that it had been told by ⁢Pfizer that most of the write-offs relate to⁢ raw ⁢materials, as well as to inventories‌ of vaccine versions ⁢that are older or ⁢different from ​the ⁢updated one ​currently in ‍use.Pfizer’s total…

Source from www.reuters.com

Exit mobile version