Pfizer Adds $2.5 Billion in Cuts, Lifting Restructuring Savings Target to $6.7 Billion
Updated
Updated · BioSpace · Aug 4
Pfizer Adds $2.5 Billion in Cuts, Lifting Restructuring Savings Target to $6.7 Billion
3 articles · Updated · BioSpace · Aug 4
Summary
$2.5 billion in new cuts will extend Pfizer’s restructuring through 2029, raising expected savings under its cost-base program to $6.7 billion and adding $1.5 billion more in manufacturing savings for a $3 billion total.
2027 to 2029 is when most of the new savings are expected, driven by technology, simplification and operational-efficiency moves across commercial, R&D and manufacturing as Pfizer navigates post-COVID weakness and Eliquis patent pressure.
$6 billion in one-time charges will fund the effort, including $2 billion for digital enablement, implementation and severance and $4 billion tied to manufacturing changes, with about 60% of that latter amount non-cash.
$15 billion in second-quarter revenue gave investors a mixed picture: Eliquis brought in $2.43 billion, Comirnaty $261 million and Padcev $667 million, while analysts said non-COVID growth and the added cuts could improve sentiment.
Pipeline setbacks still cloud the outlook after Pfizer discontinued Metsera-derived obesity asset PF'6796 in Phase 1 and halted Phase 2 GIPR antagonist PF-07976016, underscoring pressure to offset lost COVID demand and future patent expiries.