Pfizer stock careened lower Wednesday after the pharmaceuticals heavyweight issued disappointing 2024 guidance ahead of its acquisition of Seagen, now expected to close Thursday.
The company called for $58.5 billion to $61.5 billion in sales. At the midpoint, that would be roughly flat compared with expectations for this year, according to FactSet. But the guidance is far below analysts' call for $62.66 billion in 2024 sales.
Pfizer's outlook includes about $3.1 billion in sales from Seagen, which it's buying for $43 billion, and $8 billion from Covid products Comirnaty and Paxlovid. Both missed projections, though. Analysts projected a stronger $3.25 billion and $12.4 billion, respectively, Leerink Partners analyst David Risinger said in a report.
He kept his market perform rating on Pfizer stock.
The company also guided to $2.05 to $2.25 in adjusted earnings per share, well below the Street's view for $3.13. That largely excludes the impact of Seagen's acquisition, Pfizer said in a news release.
On today's stock market, Pfizer stock tumbled 6.7% to 26.66. Seagen shares were muted.
Pfizer Stock Leads S&P Decliners
Pfizer is far from the only Covid products maker to be struggling heading into the new year.
As demand slips for Covid booster shots, so have shares of Pfizer, its partner BioNTech, Moderna and Novavax. Wednesday was no exception as BioNTech stock fell 1.5%. But Moderna and Novavax stocks reversed earlier losses to rise a respective 0.7% and 0.9%.
Pfizer is pushing deeper into the cancer space with its takeover of Seagen. The deadline passed this week for the Federal Trade Commission to oppose Pfizer's takeover of the Bothell, Wash.-based company.
Seagen makes antibody drug conjugates, or ADCs. These drugs target toxic chemicals directly at tumors. This limits their damage to healthy tissue. In the third quarter, Pfizer put up $2.89 billion in sales of cancer drugs, though that fell 6% year over year and missed projections for $3.06 billion.
Pfizer stock easily led the declines among the S&P 500 stocks early Wednesday. The stock has been locked in a steep, 12-month decline. Shares hit their lowest level since the Covid crash in March 2020.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin
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