Welcome to Extreme Investor Network, where we bring you the latest and most exclusive business news. Today, we are diving into Pfizer’s new multiyear program aimed at reducing costs and rebounding from the decline in its Covid business.
Pfizer recently announced a new cost-cutting effort in addition to a previous $4 billion program. The pharmaceutical giant is focusing on operational efficiencies that are expected to save the company around $1.5 billion by the end of 2027. This move comes after a significant drop in demand for its Covid vaccine and oral drug Paxlovid.
The program will also include one-time costs of about $1.7 billion, including severance for laid-off employees. Pfizer is looking to streamline its ways of working, reduce complexity, and increase productivity in its Global Supply division. The company also mentioned “product portfolio enhancements” and changes to its manufacturing and supply network.
Investor sentiment took a hit as Pfizer’s shares fell nearly 50% in 2023, making it the worst-performing pharmaceutical stock last year. However, the company aims to regain confidence by slashing costs and improving its overall business outlook.
While Pfizer faced challenges with the disappointing launch of a new RSV shot and a weight loss pill that fell short in clinical trials, the company’s first-quarter revenue and adjusted profit beat expectations. CEO Albert Bourla expressed optimism about the future during an earnings call, leading to a 6% increase in Pfizer’s stock price and a 14% increase since then.
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