Pfizer Anticipates Stable Vaccine Policy Amid Pressure from New Drug Developments

Pfizer Inc. announced on Tuesday that despite the nomination of Robert F. Kennedy Jr., a vaccine skeptic, by newly elected President Trump for the position of Secretary of the Department of Health and Human Services, the company expects no significant changes to vaccine policy in the coming year. During an investor meeting, Pfizer CEO Albert Bourla revealed to analysts that he had dined with Mr. Kennedy and established a good rapport. Bourla stated, “If Mr. Kennedy is confirmed, we will work with him to ensure the right policies are advanced.”

Mr. Kennedy has long questioned the safety and efficacy of vaccines, despite their important role in controlling diseases and preventing deaths. He opposes the anti-vaccine label and claims he would not stop American citizens from getting vaccinated. President Trump has indicated that he might consider halting certain childhood vaccinations if he believes they pose risks. Bourla noted that President Trump seems very committed to reforming the role of pharmacy benefit managers in the U.S. healthcare system, which could lead to significant reductions in patients' drug costs. The President announced this plan during a press conference on Monday.

In addition to the COVID-19 vaccine, Pfizer also produces vaccines for pneumococcal disease and respiratory syncytial virus. When President Trump announced Mr. Kennedy as the candidate for Secretary of Health and Human Services, the stock prices of Pfizer and other vaccine manufacturers came under pressure. However, on the same day, Pfizer predicted its profits for 2025 would be in line with expectations, providing some relief for investors. Previously, the company faced criticism from shareholders, including hedge fund Starboard Value LP, regarding its turnaround strategy. Pfizer’s stock rose 3.7% in early trading to $26.20, and the company also expects its sales from COVID-19 vaccines and treatments to remain flat compared to this year.

During the pandemic, Pfizer's anti-epidemic products achieved significant success. The company is now under pressure to bring new drugs to market to compensate for potential revenue losses from several bestselling products that are set to lose patent protection. So far this year, Pfizer’s stock has dropped nearly 12%, with the current price being less than half of its peak during the COVID-19 pandemic. In recent weeks, analysts have also lowered their profit forecasts for Pfizer, making the company more susceptible to investor criticism. Starboard pointed out in October that Pfizer's management had overspent on large acquisitions without producing profitable new drugs from these deals or internal R&D. However, CEO Bourla defended the company’s turnaround strategy, highlighting cost-cutting initiatives and the divestment of non-core businesses to repay debt. According to data compiled by the London Stock Exchange Group, Pfizer expects adjusted earnings per share to be between $2.80 and $3.00, while the average analyst expectation is $2.88. Pfizer also anticipates revenue for 2025 to be between $61 billion and $64 billion, down from the previous expectation of $63.26 billion.