Pfizer Maintains High Dividend Amid COVID Revenue Collapse
Pfizer is maintaining a 5.8% dividend yield by cutting costs and expanding its product pipeline as sales for COVID-19 treatments and vaccines plummet.
Pharmaceutical giant Pfizer is maintaining a dividend yield of 5.8% despite a sharp decline in revenue from its coronavirus portfolio. Second-quarter sales for the vaccine Comirnaty fell 32% year-over-year to $261 million, while the treatment Paxlovid experienced a 95% drop, falling to $21 million.
To offset these losses and prepare for upcoming patent expirations for best-selling drugs Eliquis, Ibrance, and Xtandi, the company reduced its cost base by $7.2 billion over the last three years. CEO Albert Bourla reported that newer and acquired products now generate $13 billion in annualized sales and are growing at 20% year-over-year.
Pfizer is diversifying its revenue through a pipeline that includes 16 products currently in Phase 3 studies. This development effort includes the investigational weight-loss medicine berobenatide as the company seeks to replace lost COVID-related income and mitigate the impact of the patent cliff.
