Pfizer Boosts Profit Forecast Due to Strong Performance in COVID-19 Treatment Sales

Pfizer Inc. (NYSE:PFE) raised its annual earnings forecast following a strong third-quarter performance driven by COVID-19 treatment sales. The pharmaceutical giant's shares rose 3.2% to $29.81 in pre-market trading today.

The company now expects its annual earnings per share to be between $2.75 and $2.95, a significant increase from the previously anticipated range of $2.45 to $2.65. This upward revision came after Pfizer reported adjusted earnings of $1.06 per share, exceeding the consensus expectation of 62 cents compiled by LSEG analysts.

The revision of the profit forecast is seen as a strategic move at a time when Pfizer faces ongoing pressure from activist investment fund Starboard. The fund has expressed concerns about the decline in Pfizer's stock value and has called on the company to fulfill its recovery promises.

In response to challenges such as a significant decline in sales of its COVID vaccine and antiviral drug Paxlovid since the pandemic peak, Pfizer has begun implementing a series of measures. These include acquiring cancer drug maker Seagen for $43 billion and conducting two rounds of cost-cutting initiatives. These cost-cutting strategies are projected to save the company up to $5.5 billion by 2027.

Starboard has insisted that Pfizer's board of directors should hold management accountable for any performance shortfalls, highlighting the need for strong governance and accountability within the company.