Pfizer on Tuesday reported first-quarter revenue and adjusted earnings that topped Wall Street’s expectations, despite a decline in sales pushed by the decrease demand for the corporate’s Covid vaccine.
The pharmaceutical large’s inventory edged larger in premarket buying and selling Tuesday. Shares are down greater than 23% for the yr by means of Monday’s shut, placing the corporate’s market worth at round $221.3 billion.
Here’s what Pfizer reported in contrast with Wall Street’s expectations, primarily based on a survey of analysts by Refinitiv:
- Earnings per share: $1.23 adjusted, vs. 98 cents anticipated
- Revenue: $18.28 billion, vs. $16.59 billion anticipated
Pfizer posted web earnings of $5.54 billion, or 97 cents per share. That compares with $7.86 billion, or $1.37 per share, for the primary quarter of 2022.
The firm reported first-quarter sales of $18.28 billion, down 29% over the identical interval a yr in the past.
Sales of the corporate’s Covid vaccine declined $10 billion, or 75%, in contrast with the identical quarter final yr. Pfizer mentioned this was primarily pushed by decrease contracted deliveries and demand in worldwide markets.
The decline was additionally on account of decrease U.S. authorities contracted deliveries because the nation prepares to shift Covid merchandise to the business market later this yr, in line with Pfizer.
Sales of Pfizer’s Covid antiviral capsule Paxlovid elevated $2.8 billion in the course of the first-quarter in contrast with the identical interval final yr. Pfizer mentioned Paxlovid revenue was propelled by new launches in sure worldwide markets and robust demand in China on account of elevated Covid instances.
Sales have been additionally pushed by remaining deliveries related to a U.S. contract finalized in late December.
Paxlovid first entered the U.S. market underneath emergency use authorization in late December 2021. Pfizer hopes to win full Food and Drug Administration approval for the drug this yr. Still, the corporate expects sales of Paxlovid to drop 58% for the total yr in contrast with 2022.
Excluding Covid product sales, Pfizer mentioned first-quarter revenue grew 5% over the identical interval a yr in the past.
That progress was fueled by merchandise from lately acquired corporations, in line with Pfizer. That consists of Biohaven Pharmaceutical’s migraine drug Nurtec ODT and Global Blood Therapeutics’ sickle cell illness remedy Oxbryta, which contributed $167 million and $71 million, respectively.
The firm mentioned the rise was additionally pushed by robust sales of medication like Sulperazon, an antibiotic for the remedy of urinary tract infections, and blood thinner medicine Eliquis.
The New York-based firm maintained its 2023 sales forecast of $67 billion to $71 billion. Pfizer additionally reiterated its full-year adjusted earnings outlook of $3.25 to $3.45 per share.
But Pfizer continues to anticipate Covid-related sales to decline this yr. The firm reaffirmed its forecast of $13.5 billion in Covid vaccine sales in 2023 and $8 billion in revenue for Paxlovid.
A Pfizer spokesperson mentioned the corporate expects this yr to be a “transition yr” for Covid sales earlier than “doubtlessly returning to progress in 2024 and past.”
Excluding Covid merchandise, Pfizer mentioned it expects 7% to 9% revenue progress this yr.
Pfizer and different drugmakers like Moderna and Johnson & Johnson have been bracing for a steep drop-off in Covid-related sales this yr because the world emerges from the pandemic and depends much less on blockbuster vaccines and therapies for the virus.
But Pfizer is pinning its hopes on M&A and a document pipeline to assist the corporate navigate its post-pandemic increase.
The firm mentioned in January it expects to launch 19 vaccines and therapies over the following 18 months. Those medicine have the potential to generate $20 billion in 2030 sales, in line with Pfizer.
That consists of Pfizer’s RSV vaccine to be used in older adults, which might win FDA approval later this month.
The pipeline additionally consists of the corporate’s new pneumococcal vaccine for youngsters and a remedy for ulcerative colitis from the lately acquired Arena Pharmaceuticals.
Pfizer additionally mentioned final yr it plans so as to add $25 billion in revenue by means of dealmaking by 2030.
The firm already made strides towards that purpose with the $43 billion acquisition of Seagen in March. Seagen might contribute greater than $10 billion in risk-adjusted sales by 2030 with its most cancers therapies, in line with Pfizer.
Pfizer will maintain an earnings name at 10:00 a.m. ET.
Read the earnings release.
This is a growing story. Check again for updates.