Pfizer CEO Albert Bourla speaks during a press conference after a visit to oversee the production of the Pfizer-BioNtech Covid-19 vaccine at the Pfizer factory in Puurs, Belgium, April 23, 2021.
John Thys | Reuters
Drugmaker Pfizer on Tuesday said it expects its 2025 profits to be nearly in line with Wall Street expectations as it seeks to fend off criticism over its turnaround strategy from activist hedge fund Starboard Value.
Shares of the company rose nearly 3% in premarket trading.
The company expects adjusted profit of $2.80 to $3 per share, compared with analysts’ average estimate of $2.88 per share, according to data compiled by LSEG.
Pfizer has been reining in costs and cutting debt by shedding non-core businesses as it rebuilds itself after a sharp slump in sales of Covid-19 products.
Its shares have fallen nearly 12% this year and trade at about half their value during the peak of the Covid-19 pandemic as revenue slows down and several top-selling drugs come off patent.
That has left it open to investor criticism, with Starboard in October saying that Pfizer’s management has over-spent on big acquisitions and failed to produce profitable new drugs from those deals or from its internal research and development.
Pfizer forecast 2025 revenue in the range of $61 billion to $64 billion, compared with the estimate of $63.26 billion.
The company is slated to hold a conference call with analysts later in the day to discuss the forecast.
