Pfizer Initiates Multi-Year Cost Reduction Plan Targeting $1.5B Savings By 2027
Portfolio Pulse from Benzinga Neuro
Pfizer Inc. (NYSE:PFE) has initiated a multi-year cost reduction plan targeting $1.5 billion in savings by 2027. This follows a $4 billion cost reduction plan announced last year. The initiative aims to enhance operational efficiencies and improve the product portfolio amid declining sales from COVID-19 treatments. The program will incur one-time charges of $1.7 billion, mainly for severance and implementation costs, with cash outlays expected in 2025 and 2026. Pfizer's shares rose 2.6% following the announcement but remain down about 24% over the past year.
May 23, 2024 | 11:31 am
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Pfizer has launched a multi-year cost reduction plan targeting $1.5 billion in savings by 2027. This follows a $4 billion cost reduction plan announced last year. The initiative aims to enhance operational efficiencies and improve the product portfolio amid declining sales from COVID-19 treatments. The program will incur one-time charges of $1.7 billion, mainly for severance and implementation costs, with cash outlays expected in 2025 and 2026.
The cost-cutting measures are likely to improve Pfizer's financial health in the long term, which is positive for the stock. However, the one-time charges and the need to find new revenue streams due to declining COVID-19 treatment sales add some uncertainty.
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