Vaccine makers slip as Pfizer CFO sees weaker demand for COVID shots

Shares of vaccine makers are under pressure on Monday after Pfizer’s (PFE) CFO David Denton said the company sees weaker demand for COVID shots this year. The COVID vaccine maker expects about a 24% COVID vaccination rate in the U.S. in 2023.

WEAKER COVID VACCINE DEMAND: Discussing the current uptick in COVID infection rates at the JPMorgan U.S. All Stars Conference, Pfizer’s CFO and Executive VP David Denton said that, “On the PAXLOVID side, or the treatment side of the house, you see treatment doses being dispensed pretty consistently with underlying infection rate. So as infections go up, utilization of PAXLOVID goes up. As infections come down, utilization of PAXLOVID comes down. So, I think we continue to monitor that very directly. Keep in mind that our expectation for this year is that from a vaccination perspective in the U.S. is roughly 24% vaccination rate. Keep in mind, the flu is probably closer to a 50% vaccination rate. So, we haircut that pretty significantly for the year. We 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.”

The executive added that, “I think it’s too early to talk about that in 2024. Keep in mind, we’re also acquiring Seagen, which is dilutive in the short term as well, but a very productive longer term for us. So, I think when we get to giving ’24 guidance, we’ll be able to give you a perspective around how we think — I’ll say the non-COVID business is going to behave, how the COVID products are going to overlay on top of that, and then finally, when Seagen is approved, assuming it gets approved, what the impact of that on top of our business in totality might look like.”

PRICE ACTION: In Monday afternoon trading, shares of Pfizer have dropped about 1% to $33.73, while Moderna’s (MRNA) stock has slid over 8% to $104.98.