Pfizer (PFE) Q1 2024 Earnings

Pfizer On Wednesday reported First-quarter sales and adjusted profit beat expectations and lifted its full-year profit outlook, benefiting from its broad cost-cutting program, which was smaller than feared Decline in sales its antiviral Covid pill Paxlovid and robust sales of non-Covid products.

The company now expects to post adjusted earnings of $2.15 to $2.35 per share for the fiscal yr, up from its previous forecast of $2.05 to $2.25 per share .

Pfizer reiterated its previous sales forecast of $58.5 billion and $61.5 billion, which it first set out in mid-December. This forecast includes $5 billion in sales from the Covid vaccine and $3 billion from Paxlovid.

The pharmaceutical giant said its recent profit forecast reflects its “confidence” in its business and its ability to chop costs. Pfizer said it was heading in the right direction to attain at the very least $4 billion in savings by the tip of the yr.

“We are cautiously optimistic for the year,” Pfizer CEO Albert Bourla said during an earnings conference call on Wednesday.

The results come as Pfizer tries to regain its footing after the rapid decline of its Covid business. Demand for these products has fallen to recent lows and last yr they hit the business market within the US.

As revenue falls, the corporate is attempting to improve its bottom line and boost investor confidence through cost cuts and a renewed deal with treating cancer after it acquired Seagen for $43 billion last yr.

Shares of Pfizer closed 6% higher on Wednesday.

Here’s what Pfizer reported for the primary quarter in comparison with Wall Street’s expectations, based on an analyst survey from LSEG:

• Earnings per share: 82 cents adjusted versus 52 cents expected.
• Revenue: $14.88 billion versus expected $14.01 billion.

Pfizer reported first-quarter revenue of $14.88 billion, down 20% from the identical period last yr, largely because of a decline in sales of its Covid products.

For the primary quarter, Pfizer posted net income of $3.12 billion, or 55 cents per share. By comparison, net income was $5.54 billion, or 97 cents per share, in the identical period last yr.

Excluding certain items, the corporate reported earnings per share of 82 cents for the quarter.

Specifically, the corporate said its adjusted and unadjusted earnings rose 11 cents per share, from a final adjustment of $771 million to an estimated $3.5 billion in fourth-quarter sales , which is because of the US government returning 5.1 million doses of Paxlovid as of February. 29.

Paxlovid posted revenue of $2 billion within the quarter, down 50% from the identical period last yr. This decline was primarily because of lower shipments worldwide because the product transitioned to business market sales, in addition to lower demand in China.

Meanwhile, Pfizer’s Covid vaccine posted sales of $354 million, down 88% from the identical period last yr. This decline was also because of lower contract shipments and demand in international markets, in addition to lower U.S. volumes, due partially to the seasonality of vaccination demand.

But Pfizer expects Covid products to proceed to contribute to sales and money flow for the foreseeable future, CFO Dave Denton said on the conference call.

Shares of Pfizer fell about 40% in 2023 as demand for Paxlovid and its vaccine against the virus waned, leading the corporate to sharply cut its full-year revenue forecast and taking multibillion-dollar charges in related charges recorded with inventory depreciation. Pfizer also disenchanted the Street with the disappointing launch of a brand new RSV vaccine and a twice-daily weight reduction pill that failed clinical trials.

Excluding Covid products, first-quarter sales rose 11%, in response to Pfizer.

The company said growth was driven partially by Seagen’s 4 approved cancer products, which brought in $742 million in sales within the quarter. That features a targeted bladder cancer treatment called Padcev, which brought in $341 million in sales.

Another drug from Seagen for the treatment of certain lymphomas had sales of $257 million in the primary quarter.

Pfizer accomplished its acquisition of the drugmaker in December.

The company said sales also rose because of strong sales of Vyndaqel drugs, that are used to treat a certain sort of cardiomyopathy, a disease of the center muscle. These drugs generated sales of $1.14 billion, up 66% from the primary quarter of 2024.

Analysts surveyed by FactSet had expected this drug group to earn $909.1 million for the quarter.

Pfizer also said its blood thinner Eliquis, co-marketed by Bristol Myers Squibb, contributed to sales growth. The drug had sales of $2.04 billion within the quarter, up 9% from the identical period last yr.

Analysts had expected Eliquis to report $1.95 billion in sales, in response to FactSet.

A series of vaccinations to guard against pneumococcal pneumonia brought in first-quarter sales of $1.69 billion, up 6% from the identical period last yr. This growth was driven by U.S. child adoption and government purchases, amongst other aspects.

Analysts had expected this group of vaccines to post sales of $1.63 billion for the quarter, in response to FactSet estimates.

Meanwhile, Pfizer’s recent respiratory syncytial virus (RSV) vaccine posted sales of $145 million, largely driven by acceptance amongst older adults. The vaccine, often known as Abrysvo, hit the market within the third quarter for seniors and expectant moms who can protect their fetuses.

The vaccine fell wanting analysts’ estimate of $360 million in first-quarter sales, in response to FactSet.

Still, Pfizer is confident it could possibly increase its share of the RSV market, which it shares with rival GSK, Bourla said. The company hopes U.S. regulators will expand Abrysvo’s approval later this yr to adults ages 18 to 59 who’re at increased risk of severe RSV following positive late-stage trial data in that age group.

Pfizer’s drug for certain sorts of breast cancer, Ibrance, posted sales of $1.05 billion within the period, down 8% from the identical period last yr. The decline was because of the drug facing competitive pressures and price declines in certain international markets.

Sales of this drug were roughly consistent with analysts’ expectations.