Home News Shares of COVID-19 Vaccine Makers Fall After Pfizer CFO Warns of Outlook ‘Haircut’

Shares of COVID-19 Vaccine Makers Fall After Pfizer CFO Warns of Outlook ‘Haircut’

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Key Takeaways

  • Shares of vaccine makers dropped after Pfizer CFO David Denton said the outlook for vaccine rates this year got a “haircut.”
  • Denton told a conference that Pfizer anticipates a 24% U.S. vaccination rate this year.
  • Denton had said previously the company would take steps to cut costs if COVID-19 vaccine revenue missed expectations.

Moderna (MRNA) was the worst-performing stock in the S&P 500 as shares dropped 9% after Pfizer CFO David Denton said the outlook for vaccine rates this year got a significant “haircut.” Pfizer (PFE) shares also dropped, declining 1%.

Denton told a J.P. Morgan healthcare conference that Pfizer expects a 24% vaccination rate in the U.S. this year, which equates to about 82 million injections. Moderna has estimated a range of 50 million to 100 million.

Last week, Moderna and Pfizer, along with Pfizer’s partner BioNTech (BNTX), received Food and Drug Administration (FDA) emergency use authorization for a new vaccine that targets currently circulating variants of the virus.

Denton added that the COVID-19 vaccine rate prediction is about half of that of the flu, so “we haircut that pretty significantly for the year.” He noted that the company will “see how that plays out as we look at the trends in the coming weeks in the U.S. and globally from that perspective.”

Demand for COVID-19 shots has plunged as the pandemic waned and after millions had already been vaccinated. Last month, Denton noted that if COVID-19 vaccine sales were less than Pfizer assumed, “we are prepared to launch an enterprise-wide cost improvement program aligned with the longer-term revenue projections for our business.”

American Depositary Receipts (ADRs) of BioNTech also fell 3.8% following the news.

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