Unused stockpiles of COVID-19 treatment Paxlovid and muted demand for the same illness' vaccine weighed down on Pfizer's (PFE) third quarter earnings.

The company reported a net loss of $2.38 billion or 42 cents a share. The adjusted diluted loss was 968 million or 17 cents a share. Revenue fell 42% compared to the prior-year qꦏuarter to $13.2 billion.

The biggest hit to the company's earnings was a $5.6 billion non-cash inventory write-off, primarily on account of the company taking back millions of unused Paxlovid doses from the U.S. government.

Sales of COVID-related products🃏 also nosedived. Paxlovid sales were down 95% while Comirnaty sales fell 70% compared to the same period last year.

Pf🅰izer was aꦡmong the pharmaceutical companies to benefit most from the surge in demand for COVID-19 vaccine and treatment products, but in recent quarters earnings have dropped precipitously as interest has waned.

As of earlier this month, only 7% of U.S. adults had received the latest COVID vaccine booster dose, for example. Earlier in October, Pfizer gave confirmation that waning demand would continue as it cut its full-year 2023 sales forecast.

But Pfizer reiterated in its earnings report the depth of its pipeline and its commitment to adjusting to a post-COVID landscape. The company has already cut costs through a series of layoffs and by closing select facilities. The cost-cutting moves could save Pfizer $1 billion this year and $2.5 billion in 2024.

Pfizer shares were down roughly 2% Tuesd🍒ay morning. They have fallen by about 35% in the last year and are now trading below their levels at the start of the pandemic in March 2020.