Pfizer Doesn’t Expect Major Vaccine Policy Changes From Trump in 2025

In a new article from Reuters, Pfizer Inc., a leading pharmaceutical company, declared that they do not expect significant vaccine policy changes under the incoming Trump administration in 2025. Pfizer recently announced its financial projections for 2025, forecasting revenues between $61 billion and $64 billion and adjusted earnings per share (EPS) ranging from $2.80 to $3.00. These figures align closely with Wall Street expectations, providing some reassurance to investors following a challenging period for the company. In summary:

• Pfizer’s CEO met RFK Jr. and Trump, developing a good relationship
• Trump committed to reforming pharmacy benefit managers, reducing medicine costs
• Pfizer faces investor pressure over strategy, shares rise 3.7% after profit forecast
• Company expects 2025 adjusted profit of $2.80 to $3 per share
• Pfizer forecasts 2025 revenue $61 billion to $64 billion

In 2024, Pfizer faced a significant decline in sales of its COVID-19 products, including the vaccine Comirnaty and the antiviral treatment Paxlovid. This downturn led to increased scrutiny from investors and activist hedge funds, notably Starboard Value, which criticized Pfizer’s acquisition strategies and the profitability of its recent investments. Besides COVID-19, Pfizer makes vaccines for pneumococcal disease and respiratory syncytial virus (RSV).

To address these concerns, Pfizer implemented cost-cutting measures, achieving $4 billion in net operating expense savings by the end of 2024, with plans for an additional $500 million in savings in 2025. The company also reaffirmed its commitment to innovation, particularly in oncology, aiming to revitalize its product pipeline and drive future growth.

Despite these efforts, some analysts remain cautious. Chris Schott of JP Morgan noted that while Pfizer’s pipeline includes promising assets, especially in oncology, significant advancements are necessary to alter the current market narrative, with substantial impacts likely materializing post-2026. Pfizer’s projections also account for an anticipated $1 billion revenue impact due to changes in Medicare’s Part D prescription program under the Inflation Reduction Act, set to take effect in 2025. This consideration reflects the company’s proactive approach to navigating regulatory changes in the healthcare landscape.

In summary, Pfizer’s 2025 financial forecast aligns with market expectations, offering a degree of relief to investors. However, the company faces ongoing challenges, including the need to effectively execute its cost-saving initiatives, advance its product pipeline, and adapt to regulatory changes, all crucial for sustaining long-term growth and profitability.