S&P changes Pfizer outlook to negative

S&P said it revised its outlook for Pfizer Inc. to negative from stable and affirmed all its ratings, including the A+ unsecured debt rating.

“We expect Pfizer's leverage will be high because of the Seagen acquisition, but lower Covid-19-related revenue could cause leverage to remain above 2.5x for an extended period.

“Pfizer announced it is lowering its revenue guidance for its Covid-19 products, including Paxlovid, its antiviral treatment, and its vaccine, Comirnaty, by $9 billion. Part of the reason for the new guidance is the U.S. government's plans to return 7.9 million treatment courses of Paxlovid this year, which will result in a $4.2 billion noncash revenue reversal and lower threat from the virus. Pfizer also announced a cost reduction plan of $3.5 billion,” the agency said in a press release.

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