Health
Pfizer Stock Will Be Passed By Me In 2024. Here Are The Reasons.
(CTN News) – During the peak of the COVID-19 pandemic, pharmaceutical giant Pfizer (NYSE: PFE) was one of the most significant companies.
Post-pandemic world was paved by the company’s breakthrough vaccine. Demand for COVID-19 treatments has contributed to record-breaking revenue over the past few years.
Pfizer’s next growth engine, however, may be in doubt as pandemic concerns recede. Despite the company’s identification of several catalysts, I have my doubts about their prospects. It’s not just me. At just $29 per share, Pfizer shares are at their lowest levels in ten years.
Considering current state, let’s examine whether it’s a good time to buy the dip or to move on and seek growth elsewhere.
COVID-19 medications aren’t in high demand
There are two COVID-19-related treatments offered by Pfizer: Comirnaty and Paxlovid. Pfizer reported $100.3 billion in revenue in 2022 — a 23% increase over 2021 and a record for the company.
Given that revenue essentially doubled between 2020 and 2021, this momentum isn’t surprising. This growth can be largely attributed to the company’s blockbuster COVID-19 medications, which accounted for 57% of total sales in 2022.
It may come as a surprise, however, to learn of the precipitous decline in revenue streams from COVID-19. In third-quarter results, ended Sept. 30, revenue from Comirnaty and Paxlovid decreased 70% and 97%, respectively.
It’s understandable that COVID-19 has subsided from its peak. I’m still a little worried about business as a result of these declines. Pfizer earned $0.97 per share in 2023, down 79% from last year.
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