The News & Observer reports that Pfizer will close two of its North Carolina Triangle facilities as part of a “$3.5 billion cost-saving initiative.”
North Carolina’s “Research Triangle” is the state’s metropolitan area anchored by three major research universities (Duke University, North Carolina State University, and the University of North Carolina at Chapel Hill).
“The sites are the company’s Research Triangle Park office near Morrisville and its clinical manufacturing facility just outside the Park in Durham,” The News & Observer wrote.
“The Durham closure comes only two years after Pfizer opened that site as part of $66 million investment by the company. The 85,000-square-foot facility focused on gene therapy treatments.
On Oct. 13, Pfizer announced it would undergo a multiyear plan to save $3.5 billion,… pic.twitter.com/HtzNpwje1L
— Chief Nerd (@TheChiefNerd) October 29, 2023
The News & Observer reports:
Pfizer did not disclose how many jobs will be impacted. In an email to The News & Observer that “All job-related decisions will be made with transparency, compassion, and respect, and in compliance with applicable laws.”
Under federal law, employers must file a WARN Notice 60 days ahead of closing a site that impacts at least 50 employees. Pfizer has not filed a notice of layoffs, according to the N.C. Department of Commerce website.
The Durham closure comes only two years after Pfizer opened that site as part of $66 million investment by the company. The 85,000-square-foot facility focused on gene therapy treatments. This site was expected to add 50 jobs and relocate around 40 workers from Chapel Hill.
On Oct. 13, Pfizer announced it would undergo a multiyear plan to save $3.5 billion, including $1 billion by the end of this year. The company also lowered its yearly revenue forecast due to lower-than-expected sales of its COVID-19 vaccine. Last year, Pfizer reported record revenue fueled by coronavirus vaccine sales.
Pfizer, one of the Triangle’s largest employers, to close two facilities in NC https://t.co/4iXuAVhnVH
— The News & Observer (@newsobserver) October 27, 2023
In addition, in the fourth quarter of 2023, Pfizer announced that the company has launched a multi-year, enterprise-wide cost realignment program that will realign its costs with its longer-term revenue expectations. The program is expected to deliver targeted savings of at least $3.5 billion, of which $1.0 billion is expected to be realized in 2023 and an additional $2.5 billion is expected to be realized in 2024. The one-time costs to achieve the savings associated with the new cost realignment program are expected to be approximately $3.0 billion, of which the majority is expected to be cash. These costs will primarily include severance and implementation costs. Pfizer will continue to refine the estimated targeted savings and their associated costs over the remainder of the year and will incorporate them into its full-year guidance for 2024.
“Launches Enterprise-Wide Cost Realignment Program Expected to Deliver Targeted Savings of at least $3.5 Billion, of which Approximately $1.0 Billion is Expected to be Realized in 2023 and at least $2.5 Billion is Expected to be Realized in 2024,” the pharmaceutical company wrote.
“Revises 2023 Adjusted(2) Diluted EPS Guidance(1) to $1.45 to $1.65 to Account for Lower Expected Revenues for COVID Products and Inventory Write-Offs, Partially Offset by $1.0 Billion of Anticipated 2023 Cost Reductions,” Pfizer added.
The reports of Pfizer closing two of its facilities follows its declining stock prices.
@EpochTimes Maybe the public has had enough of healthcare that values price of a stock instead of sanctity of life. Vaccines are useless in Viruses that mutate constantly. Pfizer, Moderna Stock Prices Down Considerably in 2023 | The Epoch Times https://t.co/obNRNLPCqz
— sabine hazan md (@SabinehazanMD) October 28, 2023
#10 – Pfizer stock takes big loss because nobody wants their COVID “vaccines” and drugs.https://t.co/k8csEbjRLZ
— The Vigilant Fox 🦊 (@VigilantFox) October 22, 2023
Investor’s Business Daily reports:
After a short-lived pop following its revised Paxlovid agreement with the U.S. government, Pfizer (PFE) stock has resumed declining in October.
The company recently unveiled updated guidance for the year, and now expects $58 billion to $61 billion in sales — about $9 billion less than the previous outlook. This comes amid sloping demand for its BioNTech (BNTX)-partnered Covid vaccine, Comirnaty, and its antiviral pill, Paxlovid.Advertisement
Pfizer also stepped down its operating expenses from a run rate of $27 billion this year to $23.5 billion, Leerink Partners analyst David Risinger said in a report. But he cut his price target on Pfizer stock to 35 from 40 “due to uncertain long-term growth prospects.”
But Pfizer continues tacking on new approvals. This month, alone, the Food and Drug Administration signed off on a new Pfizer regimen to treat metastatic lung cancer. The FDA also approved Velsipity, a treatment for ulcerative colitis, and Pfizer’s meningococcal vaccine for teens, Penbraya.
The company also just launched its updated Covid booster shot, alongside rivals Moderna (MRNA) and Novavax (NVAX). Now, the vaccine attempts to block the XBB.1.5 strain. That variant accounts for just a fraction of sequenced cases today in the U.S. But the companies say their vaccines can block currently dominant strains, including EG.5.