Pfizer expands cost-cutting measures and anticipates $7.7 billion in savings

In the United States, Pfizer has announced expanded cost-cutting efforts, resulting in an anticipated $7.7 billion in savings by the end of 2025. This announcement comes as the pharmaceutical giant seeks to navigate financial challenges following a significant decline in sales, particularly from its antiviral Covid pill Paxlovid. During the first quarter of 2025, the company reported a net income of $2.97 billion on revenues of $13.72 billion, reflecting an 8% decrease in sales from the previous year. The revenue drop was primarily attributed to a 76% decline in Paxlovid sales due to reduced Covid infections and lower international purchases of the drug. Analysts had projected higher sales for the treatment, demonstrating the ongoing volatility surrounding the pharmaceutical market and Covid-related revenues. Pfizer's CEO, Albert Bourla, indicated the company's strategic response includes forming a specialized team to manage potential future impacts of tariffs and trade policy changes on its business. They are actively analyzing possible outcomes and adjusting their supply chain management strategies in anticipation of regulatory shifts that may affect their operations. This proactive stance mirrors the uncertainties faced by vaccine producers amid changing health policy leadership, notably under Robert F. Kennedy Jr., who advocates for significant reforms within federal health agencies. While Pfizer maintains its 2025 guidance of $61 billion to $64 billion in sales, it emphasizes that this outlook does not account for unpredictable future market conditions or regulatory changes. Ultimately, these developments underscore the pharmaceutical industry's ongoing struggle to adapt to a post-pandemic environment and diminishing demand for Covid-related treatments.