On the uncertainties surrounding COVID product sales, Pfizer and BioNTech shares dropped earlier.

Pfizer cut its sales forecast for its COVID vaccination and therapy last week, and some analysts claimed the fall was worse than anticipated. Pfizer's shares and those of its German partner BioNTech tumbled as a result on Monday.

Pfizer on Friday decreased its full-year prediction for sales of its antiviral COVID medication Paxlovid by approximately $7 billion and for the vaccine, it developed with BioNTech by about $2 billion due to a decline in the usage of pandemic-related treatments.

While BioNTech signalled write-downs of up to 900 million euros ($947 million), Pfizer stated it will take a non-cash charge of $5.5 billion in the third quarter due to $4.6 billion in inventory write-offs for Paxlovid and $900 million for the vaccine.

According to a Wells Fargo analyst, the COVID sales forecast drop was greater than anticipated. He also said that COVID sales expectations from Wall Street for the upcoming years may be revised downward.

The write-offs, according to BioNTech, will also lower its revenue in 2023. Pfizer pays BioNTech a large portion of its revenue through profit-sharing payments tied to vaccines.

The business noted that Pfizer had informed it that the majority of write-offs related to raw materials and inventory of earlier or distinct vaccine versions from the updated one now in use.

BioNTech shares are currently down 5.5% whereas Pfizer shares are down 2.60%.

(Sources: investing.com, reuters.com)