As a result, Pfizer shares fell more than 3% on Monday.
Pfizer now expects adjusted EPS to be in the range of $1.45 to $1.65 for the full year. This is significantly lower than the previous guidance of $3.25 to $3.45 and falls short of the estimated $3.32.
The company has revised its revenue outlook to be between $58 billion to $61 billion, down from the earlier projection of $67 billion to $70 billion. Analysts were looking for $66 billion.
The guidance adjustment is primarily related to the impact of COVID-19 products. Pfizer anticipates a non-cash charge of $5.5 billion in the third quarter of 2023, attributed to Covid-19 inventory.
The company has also lowered its expectations for Paxlovid revenue in 2023 by approximately $7 billion.
The rollout of Pfizer's latest Covid booster in the U.S. has faced challenges, primarily attributed to supply and insurance coverage issues. Moreover, a lower number of patients have been seeking treatments for COVID-19 compared to earlier in the pandemic.
This shift is likely due to a combination of factors, including the widespread vaccination efforts and the development of immunity in many individuals, resulting in milder cases of COVID-19 for a significant portion of the population.