Pfizer has announced an additional $2.5 billion in planned cost savings, extending its sweeping cutback programme through 2029 and bringing its total reduction target to $9.7 billion.
The New York-based pharmaceutical giant revealed the new savings push alongside its second-quarter earnings report, which showed a 3% revenue increase to $15 billion, topping analyst expectations.
Pfizer also raised its full-year 2026 sales guidance at the midpoint by $500 million, setting a new range of $60.5 billion to $62.5 billion as the company signals confidence in its growth trajectory.
Of the newly announced $2.5 billion in cuts, $1.5 billion is earmarked for optimising manufacturing operations, with the remaining $1 billion added to Pfizer’s existing cost realignment programme.
The total cost realignment plan is now designed to deliver $6.7 billion in savings through the end of 2029, up from a previous target of $5.7 billion expected by the close of 2026.
Pfizer is reinvesting $500 million of the cost savings into research and development this year, signalling that the efficiency drive is not intended to slow its pipeline progress.
The savings tied to the manufacturing side of the business will come through what Pfizer describes as “product portfolio enhancements and additional operational efficiencies,” bringing that programme’s total expected savings to $3 billion.
While COVID-related products saw significant revenue declines, with Paxlovid sales falling sharply from $427 million in the second quarter of last year to just $21 million in the same period this year, other treatments performed strongly.
Blood thinner Eliquis rose 21% and migraine therapy Nurtec recorded an 18% increase, underscoring the growing contribution of Pfizer’s non-COVID portfolio to overall group performance.
Pfizer Chairman and CEO Albert Bourla said the company’s obesity programme is advancing “with meaningful momentum” and that its oncology portfolio “remains a source of strength.”
Investors are watching closely for signs that Pfizer’s $10 billion acquisition of Metsera can help the company establish a foothold in the fast-growing obesity treatment market.
The company is also navigating a leadership change in its finance function, with CFO Dave Denton departing on 15 August and Cecile Guegan set to step in as interim CFO the following day.