With the success of the vaccination of COVID-19, Pfizer became one of the most successful companies that were on top of its game. It competed with all major drug-making companies.
Pfizer did not stop at developing the perfect vaccination for COVID-19 but they also worked on Paxlovid, an oral drug for Paxlovid.
Pfizer’s Paxlovid is Losing Demand
After the approval of the production of Paxlovid, Pfizer initiated the production of the oral drug at a very fast pace. In order to produce the drug at a faster rate, the drugmaker used advanced computational modeling and artificial intelligence.
Despite Pfizer’s haste in producing the oral drug, it wasn’t confirmed whether the drug would succeed or not. To be precise, there was no guarantee that the drug would earn commercial success.
Recently, Pfizer made an announcement in regards to a reduction in the production of the oral antiviral pill. Pfizer recently published its outlook for the production of the oral antiviral pill.
For the outlook, Pfizer has hinted that it may lower its production for Paxlovid. This is not very good news and even a hint for the investment community of Pfizer would be an alarming signal.
Codexis Makes an Announcement
Codexis has recently made an announcement in regards to its supply of a particular enzyme to Pfizer. The particular enzyme causes a reduction in the waste products as well as improves the efficiency of the drug. The particular enzyme is extremely important and plays a key role in Paxlovid’s production process.
Codexis was anticipating a promising growth in the revenue and Pfizer in the year 2022. The company had also increased its guidance for revenue generation in the year 2022. However, the sources have confirmed that Codexis has recently reduced its revenue guidance for the same year.
Impact on Sales in 2023 and 2024
The decision made by Codexis is due to the reduction in demand for the enzyme by Pfizer. The decisions made by both companies will have long-lasting impacts on the investors. The sales for both companies will be hurt tremendously and the sales for the years 2023 and 2024 will face the same.
Initially, Codexis had set its full-year revenue guidance between $152 million and $158 million. The company also showed that the year-over-year growth they are looking at would be 50%. However, the company announced that it had excluded the supply agreement with Pfizer.
The above data was shared by Codexis before Pfizer had decided to reduce its acquisition of the enzyme for the production of Paxlovid.
Impact on Stock Prices
Although the announcement is yet to make its impact on Pfizer as its shares experienced a 0.70% surge, things have gone south for Codexis. In the stock trading market, Codexis has experienced a 44.74% drop in its share prices.
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