Pfizer (PFE) earnings in the first quarter of 2024

Pfizer on Wednesday reported first-quarter revenue and adjusted earnings that beat expectations and raised its full-year profit outlook, benefiting from its extensive cost-cutting program, a smaller-than-feared drop in sales of its Covid antiviral pill Paxlovid and strong non-sale of Covid products.

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

Pfizer reiterated its previous revenue guidance of $58.5 billion and $61.5 billion, which it first outlined in mid-December. That guidance includes $5 billion in sales from its Covid vaccine and $3 billion from Paxlovid.

The pharmaceutical giant said its new profit guidance explains its “confidence” in its business and its ability to cut costs. Pfizer said it is on track to generate at least $4 billion in savings by the end of the year.

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

The results come as Pfizer tries to regain its footing following the rapid decline of its Covid business. Demand for those products has plummeted to new lows, and last year they moved into the U.S. commercial market.

As revenue suffers, the company is trying to improve its results and shore up investor confidence through cost cuts and a renewed focus on cancer treatment after its $43 billion acquisition of Seagen last year. last year.

Pfizer shares closed 6% higher on Wednesday.

Here's what Pfizer reported for the first quarter compared to what Wall Street expected, according to a survey of analysts by LSEG:

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

Pfizer reported first-quarter revenue of $14.88 billion, down 20% from the same period a year earlier, primarily due to declining sales of its Covid products.

For the first quarter, Pfizer posted net income of $3.12 billion, or 55 cents per share. That compares with net income of $5.54 billion, or 97 cents per share, during the same period a year ago.

Excluding certain items, the company posted earnings per share of 82 cents for the quarter.

Notably, the company said its adjusted and unadjusted earnings rose 11 cents per share from a final adjustment of $771 million to the estimated $3.5 billion revenue reversal recorded in the fourth quarter, which reflecting 5.1 million Paxlovid courses returned by the US government as of February 1. 29.

Paxlovid posted $2 billion in revenue for the quarter, down 50% from the same period a year earlier. That decline was primarily due to lower deliveries around the world as the product transitioned to sales in the commercial market, along with lower demand in China.

Meanwhile, Pfizer's Covid vaccine generated $354 million in sales, down 88% from the same period last year. That decline was also driven by lower contract deliveries and demand in international markets, as well as lower volumes in the United States, partly reflecting the seasonality of vaccine demand.

But Pfizer expects Covid products to continue to “contribute to revenue and cash flows for the foreseeable future,” Chief Financial Officer Dave Denton said on the call.

Pfizer shares fell about 40% in 2023 as demand for Paxlovid and its virus vaccine dried up, causing the company to sharply cut its full-year revenue forecast and record multibillion-dollar charges related to inventory write-offs. . Pfizer also disappointed the street with a disappointing launch of a new RSV shot and a twice-daily weight-loss pill that fell short in clinical trial results.

Excluding Covid products, Pfizer said first-quarter revenue rose 11%.

The company said the growth was driven in part by Seagen's four approved cancer products, which generated $742 million in revenue for the quarter. That includes a targeted treatment for bladder cancer called Padcev, which generated $341 million in sales.

Another Seagen drug that treats certain lymphomas generated $257 million in revenue during the first quarter.

Pfizer completed its acquisition of the pharmaceutical company in December.

The company said revenue also received a boost from strong sales of Vyndaqel drugs, which are used to treat a certain type of cardiomyopathy, a disease of the heart muscle. These drugs recorded $1.14 billion in sales, 66% more than in the first quarter of 2024.

Analysts surveyed by FactSet expected that drug group to raise $909.1 million in the quarter.

Pfizer also said its blood thinner Eliquis, co-marketed by Bristol Myers Squibb, helped drive revenue growth. The drug posted revenue of $2.04 billion during the quarter, up 9% from the same period a year earlier.

Analysts expected Eliquis to bring in $1.95 billion in sales, according to FactSet.

A group of vaccines to protect against pneumococcal pneumonia generated $1.69 billion in sales during the first quarter, up 6% from the same period a year earlier. That growth was driven by acceptance among children in the U.S. and government purchases, among other factors.

Analysts expected that injection group to post $1.63 billion in sales for the quarter, according to FactSet estimates.

Meanwhile, Pfizer's new vaccine against respiratory syncytial virus (RSV) earned $145 million in revenue, driven primarily by its adoption among older adults. The vaccine, known as Abrysvo, entered the market during the third trimester for seniors and expectant mothers who can pass protection to their fetuses.

The vaccine missed analysts' estimate of $360 million in revenue for the first quarter, according to FactSet.

Still, Pfizer is confident it can increase its share of the RSV market, which it shares with competitor GSK, Bourla said. The company expects U.S. regulators to expand approval of Abrysvo later this year to adults ages 18 to 59 who are at higher risk for severe RSV, following positive data from late-stage trials in that age group.

Pfizer's drug for certain breast cancers, Ibrance, generated $1.05 billion in revenue during the period, down 8% from the same period a year earlier. The drop came as the drug faced competitive pressure and price drops in certain international markets.

Revenue from that drug was roughly in line with what analysts expected.