In a filing with the U.S. Securities and Exchange Commission, Pfizer shared its multi-year plans to reduce costs on goods sold as the vaccine maker faces challenges due to the dwindling demand for its COVID-19 vaccine. This plan is in addition to another from the company that aims to save $4 billion by the end of the year.
The first phase, focused on operational efficiencies, could save around $1.5 billion by 2027. Pfizer anticipates spending around $1.7 billion in one-time costs, mostly in 2024, for this phase.
Sales of Pfizer’s COVID vaccine dropped 70% in 2023 to $11.2 billion, a drastic decrease from $37.8 billion in 2022 when it accounted for about 20% of the company’s total revenues. Other vaccine makers are facing the same struggles, with Moderna’s sales falling from $1.9 billion in the first three months of 2023 to $167 million during the same time period in 2024.
