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Pfizer The company beat expectations on second-quarter revenue and adjusted earnings on Thursday and raised its full-year forecast, benefiting from its broad business cost cutting plansales of its Covid antiviral Paxlovid were better than expected and sales of non-Covid products were strong.
The company now expects adjusted earnings per share for the fiscal year of $2.45 to $2.65, up from previous guidance of $2.15 to $2.35 per share.
Pfizer also raised its revenue forecast to $59.5 billion to $62.5 billion, up from its previous forecast of $58.5 billion to $61.5 billion. That includes about $5 billion in expected revenue from Covid vaccines and $3.5 billion in expected revenue from Paxlovid.
The pharmaceutical giant said its higher outlook reflected its strong first-half results and confidence in the “underlying strength” of its business. Notably, Pfizer on Tuesday reported its first quarterly revenue growth since the fourth quarter of 2022, when its Covid revenue peaked.
The results come as Pfizer struggles to stabilize its business and regain favor with Wall Street after demand for its coronavirus products plummeted. Demand for its vaccine and Paxlovid fell sharply last year as the world emerged from the pandemic and shifted to the U.S. commercial market.
With revenue drying up, Pfizer in October launched a broad cost-cutting plan aimed at saving at least $4 billion by the end of 2024.effort required Save $1.5 billion By 2027.
Pfizer is also targeting cure cancer after its huge impact $43 billion acquisition Seagen last year.
This is what the company reported second season Compared to Wall Street expectations, according to a survey of analysts by LSEG:
- Earnings per share: Adjusted 60 cents, compared with expectations of 46 cents.
- income: US$13.28 billion, compared with US$12.96 billion expected.
The company’s second-quarter net income was $41 million, or 1 cent per share. This compares with net income of $2.33 billion, or 41 cents per share, in the same period last year. Excluding certain items, the company earned 60 cents per share for the quarter.
Pfizer’s second-quarter revenue was $13.28 billion. This is an increase of 2% from the same period last year.
The company cited growth from acquired medicines, recently launched treatments and other key products, which helped offset declining sales in its COVID-19 business.
Paxlovid’s sales this quarter were US$251 million, an increase of 76% over the same period last year. The increase was primarily due to increased infection rates and demand in certain international markets during the quarter, as well as favorable results compared to the same period last year, when Paxlovid was not available in the United States before moving to commercial markets.
The unit’s performance topped analysts’ expectations for sales of $206.1 million, according to estimates compiled by StreetAccount.
The company’s Covid vaccine revenue was $195 million, down 87% from the same period last year.
The decrease was due to lower contract deliveries and demand in international markets and reflects the seasonality of vaccination demand.
Analysts expect sales of the drug to be $195 million, according to StreetAccount.
Product growth during the non-COVID-19 period
Pfizer said operating income rose 14% in the second quarter, excluding Covid products.
The company said growth was driven in part by Seagen’s approved cancer product, which brought in $845 million in revenue this quarter. That includes $394 million from a targeted bladder cancer treatment called Padcev and $279 million from Adectris, another drug targeting certain lymphomas.
Pfizer completed its acquisition of Seagen in December.
Revenue was also boosted by strong sales of Pfizer’s Vyndaqel drug, used to treat a certain type of cardiomyopathy, a disease of the heart muscle. Sales of these drugs were $1.32 billion, up 69% from the second quarter of 2023.
Analysts had expected revenue from the drug to reach $1.1 billion this quarter, according to StreetAccount estimates.
Pfizer said the blood thinner Eliquis, which it co-markets with Bristol-Myers Squibb, also helped boost revenue in the period. The drug’s revenue for the quarter was US$1.88 billion, a 7% increase from the same period last year.
That was in line with analysts’ expectations, according to StreetAccount.
However, Eliquis sales could take a hit in 2026 when the drug’s new prices take effect for certain Medicare patients. negotiation with the federal government. These price negotiations are an important provision of the President’s Joe Biden’s The Inflation Reduction Act ends in early August.
Meanwhile, Pfizer’s vaccine against respiratory syncytial virus (RSV) generated $56 million in revenue. The vaccine, called Abrysvo, will enter the market in the third quarter of 2023 and is intended for the elderly and pregnant women to provide protection to the fetus.
The move fell short of analysts’ expectations for second-quarter revenue of $89 million, according to StreetAccount.
