Pfizer stock sees worst year of 21st century after COVID vaccine market plummets

Pfizer's market cap was cut nearly in half in 2023, marking the worst year for the company's stock this century, a recent report explained.

Down 44% at the closing of the markets days before New Year's Eve, 2023, shares also hit a 10-year low with the company's stocks plummeting to $26 from $51 per share, where it was at the start of the year.

As the Washington Examiner noted, the year-end $162 billion market cap is less than half what it was two years prior during the COVID-19 vaccine gold rush.

"Pfizer was doubling and tripling down on their COVID-19 vaccines and the Paxlovid pills for treatment," remarked Josh Brown, CEO of financial management company Ritholtz Wealth.

However, in 2023, vaccine usage took a steady nosedive despite once being a the most formidable driver for the company. Although the usage drop was expected, a small bump toward the end of 2022 showed some promise for the vaccine manufacturer.

The number of new dosages dropped to just under 12,000 in a day when the CDC stopped tracking the figure on May 11, 2023, the day President Biden officially called an end to the COVID emergency.

Compare that to two years earlier, when more than 2,000,000 doses were administered in a single day.

While 56 million Americans received the bivalent COVID-19 booster, this clearly wasn't enough to move the needle for Pfizer's stock. That's why the company nearly quadrupled the price of the COVID-19 vaccine in October 2023 from $19.50 per dose all the way up to around $120, Fee reported.

Barchart noted that in order to keep profits coming in, part of Pfizer's plan has included acquiring new drug companies. Specifically, the company spent $43 billion in its acquisition of Seagen Inc., a company focused on cancer treatments.

Despite the obvious drop in profit for Pfizer in 2023, the company has been able to raise dividends and is expected to garner between $58.5-$61.5 billion in 2024. Additionally, the company is hoping to add $25 billion in sales by the often-targeted year of 2030.

For reference, competitor and fellow pharmaceutical giant Eli Lily was able to garner massive gains in 2023 and pole vaulted its shares by more than 60%.

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