Pfizer has expanded its “cost realignment program” to save an additional $1.2 billion, adding an R&D reorganization to the plan.
Pfizer had previously said the cost-cutting program would deliver overall net cost savings of approximately $4.5 billion by the end of 2025 and now expects to add another $1.2 billion to that by the end of 2027. According to Pfizer, the savings will be realized through productivity gains stemming from “digital enablement and process simplification.”
The anticipated R&D re-org will yield a cost-savings of approximately $500 million by the end of 2026. Pfizer will reinvest this savings back into its pipeline.
The updated initiative comes as Pfizer reported first-quarter profit that exceeded estimates, despite a decline in sales, mostly due to falling revenue for its COVID antiviral, Paxlovid.