Why Is US Pharma Giant Pfizer Stock Trading Lower Today?
Portfolio Pulse from Vandana Singh
Pfizer Inc (NYSE:PFE) provided its FY24 guidance, including the financial impact from the Seagen Inc (NASDAQ:SGEN) acquisition. The guidance of $58.5-$61.5 billion in revenue is below the consensus of $63.17 billion. Pfizer expects $8 billion in COVID-19 product revenues and $3.1 billion from Seagen. Adjusted diluted EPS is forecasted at $2.05-$2.25, under the consensus of $3.17. Pfizer also announced a cost savings program and released Phase 2b trial results for its weight loss drug, which had high dropout rates due to side effects. PFE shares dropped 6.86% in premarket trading.
December 13, 2023 | 12:50 pm
News sentiment analysis
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NEGATIVE IMPACT
Pfizer's FY24 revenue and EPS guidance is below consensus, with expected savings from cost realignment and mixed results from a weight loss drug trial.
Pfizer's stock is trading lower due to its FY24 guidance being below market expectations, which could lead to a negative short-term impact on the stock price. The high dropout rates in the weight loss drug trial may also concern investors about the drug's commercial viability.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Seagen is expected to contribute approximately $3.1 billion in revenues to Pfizer's FY24 following the acquisition.
Seagen's contribution to Pfizer's revenue is seen as a positive aspect of the acquisition, which may have a favorable short-term impact on Seagen's stock. However, the overall negative sentiment surrounding Pfizer's guidance could also affect Seagen's stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80