Pfizer’s partnership with UpScript marks its latest move in a direct-to-consumer push, a response to dwindling Covid-related product sales and a harsh reality check after years of astronomical growth. The company has had a rocky couple of years, particularly with a dramatic decline in Covid-related revenue, forcing it to cut between $4-6 billion in costs and lay off thousands of employees. Despite this, Pfizer is banking on a new strategy to stay afloat: bypassing traditional healthcare providers and delivering its drugs directly to consumers.
It’s an interesting, albeit risky, move. Pfizer has faced significant backlash over the past few years, with critics arguing that the company’s pandemic response and subsequent vaccine rollout had more to do with profit than public health. Having reaped billions from its COVID-19 vaccines, the company is now trying to regain footing by expanding its presence in consumer health. But will this be enough to counteract the revenue loss from COVID-19 products?
Pfizer’s Tumultuous Path
Covid-era profits gave Pfizer a significant financial boost. However, with sales plummeting as the world moves past the height of the pandemic, Pfizer’s stock price and economic outlook have been less than stellar. After cutting billions in operational costs and slashing jobs, the company is looking for alternative revenue streams—one of them being this partnership with UpScript.
UpScript, a telehealth platform, allows patients to access prescription medications without visiting a doctor. While this may sound convenient, the shift toward direct-to-consumer sales raises questions about long-term efficacy and safety, especially as it emphasizes convenience over traditional, doctor-led care. While Pfizer hopes this direct approach will encourage more sales, it’s unclear whether this will create significant revenue in the short term. On a recent earnings call, a Lilly executive noted that a “relatively low volume” of prescriptions for its popular obesity drug Zepbound was coming from its direct-to-consumer service, LillyDirect.
Pfizer’s reliance on this model may not be as lucrative as hoped. Yet, given the significant operational upheaval, it’s easy to see why the company would make this gamble. As one might say, Pfizer’s tumultuous period isn’t just financial. After having killed and maimed millions of people worldwide through a vaccine push that critics argue was more profit-driven than health-focused, the pharmaceutical giant is now attempting to milk the remaining loyal customers for whatever remains.
Covid-Flu Vaccine: A Missed Target
Pfizer’s trouble extends beyond financial losses. Their latest development, a combined COVID-19 vaccine, failed to meet the Phase 3 primary endpoint of non-inferior immunogenicity against influenza. While the combo vaccine showed a strong response against influenza A, it didn’t provide the same protection against influenza B. This failure adds another layer of uncertainty to Pfizer’s future.
Though the vaccine did meet the endpoint for SARS-CoV-2 immunity—matching the results of their existing Comirnaty vaccine—this shortfall against influenza B is problematic. Over 8,000 adults were enrolled in the study, but the results suggest the vaccine needs further tweaking before success. Pfizer’s head of vaccine research, Annaliesa Anderson, has confirmed that they are “evaluating next steps,” the company may launch the vaccine by 2025 after necessary adjustments. However, with skepticism around the necessity of such a vaccine already on the rise, it’s unclear how well it will be received.
CEO Albert Bourla’s comments late last year indicated that Pfizer had ambitious plans for this combined vaccine, but the disappointment in Phase 3 has left those plans on shaky ground. It is another example of how Pfizer’s rapid pandemic-era expansion has hit a wall in a post-Covid world.
Direct-to-Consumer: Will It Pay Off?
Pfizer hopes that by partnering with UpScript, it can access consumers directly, boosting sales in areas where traditional doctor-patient relationships may not foster as much growth. This includes drugs that treat conditions like obesity, erectile dysfunction, and other chronic ailments, where direct access might lead to more prescriptions.
While this strategy offers a path forward, it has downsides. Telehealth has its place, but critics argue that it can encourage overprescription or under-diagnosis, given the lack of a physical exam. Furthermore, trust in Pfizer has been shaken, with public opinion on Big Pharma swinging wildly over the past few years. Consumers may be wary of bypassing their doctor for a direct interaction with a company that, as some would say, has already exploited the health crisis for financial gain.
Still, if the direct-to-consumer push succeeds, it could set a precedent for the industry. Other pharmaceutical companies could follow suit, bypassing doctors altogether for profit.
What’s Next for Pfizer?
Pfizer’s decision to pivot toward direct-to-consumer marketing through its partnership with UpScript feels like a natural progression for a company scrambling to maintain relevance in a post-pandemic world. Whether this will ultimately succeed depends on consumer trust, the effectiveness of the UpScript platform, and, most importantly, whether Pfizer can convince its customers to stay loyal in an era of increasing skepticism about Big Pharma.
What is clear is that Pfizer is far from out of the woods. Even as it eyes new revenue streams, the shadow of its pandemic performance looms large, and the failure of its Covid-flu vaccine to meet critical endpoints only adds to the uncertainty.
As of now, Pfizer’s next moves will be critical. The pharmaceutical giant has been experiencing a tumultuous time, and the question remains: Can they navigate their way out of it?
. It is a response to dwindling COVID-related product sales and a harsh reality check after years of astronomical growth. The company has had a rocky couple of years, particularly with a dramatic decline in COVID.