Pfizer downgraded to Neutral at BofA on COVID-19 uncertainty

As previously reported, BofA analyst Geoff Meacham downgraded Pfizer to Neutral from Buy with an unchanged price target of $60. He cites uncertainty around the magnitude of the revenue decline for Comirnaty and Paxlovid in 2023 and the collective impact from launches to offset the roughly $17B loss of exclusivity "hole" in 2025-2030, Meacham tells investors. His prior Buy thesis was centered on Comirnaty and Paxlovid driving cash flow earmarked for business development, but as total COVID revenues erode there is less for business development at a time when new product growth looks less certain, the analyst added.