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Ursula von der of the European Commission after a visit to oversee the production of the Pfizer-BioNTech COVID-19 vaccine at the US pharmaceutical company Pfizer’s factory in Puurs, Belgium, April 23, 2021. Pfizer CEO Albert Bourla holds a press conference with Chairman Leyen.
John Tis | Reuters
pfizer announced a surprise adjusted profit on Tuesday, with better-than-expected results from its COVID-19 business.
The company has canceled approximately $3.5 billion in revenue related to the return of 6.5 million doses of the coronavirus treatment drug Paxlovid from the U.S. government. The hit is less than the $4.2 billion Pfizer had originally expected.
Sales of Pfizer’s coronavirus vaccine were $5.36 billion in the quarter, down 53% from a year earlier. Analysts had expected the shooting to bring in $4.99 billion in revenue, according to FactSet estimates.
The results come as Pfizer seeks to slow the sharp decline in its coronavirus business, which shifted to commercial markets last year as demand plummeted to new lows in the United States. As revenues decline, the company is seeking to improve its bottom line and boost investor confidence through an extensive $4 billion cost-cutting plan.
Below is a comparison of Pfizer’s fourth-quarter report to Wall Street expectations, based on an analyst survey by LSEG (formerly Refinitiv).
- Earnings per share: Adjusted loss of 10 cents per share, expected loss of 22 cents.
- Revenue: $14.25 billion vs. $14.42 billion expected
The pharmaceutical giant also reiterated its full-year 2024 outlook, which it first outlined in mid-December.
Pfizer expects sales of $58.5 billion to $61.5 billion this year, including about $8 billion in sales from coronavirus-related products and the recently completed cancer drug development company Seagen Inc. Includes contributions from acquisitions.
The company expects to report adjusted earnings of $2.05 to $2.25 per share.
Pfizer’s fourth-quarter sales fell 41% year-on-year to $14.25 billion due to a decline in sales of coronavirus-related products.
In the fourth quarter, Pfizer posted a net loss of $3.37 billion, or 60 cents per share. This compares with net income of $4.99 billion, or 87 cents per share, in the same period last year.
Excluding certain items, the company’s earnings per share for the quarter were 10 cents.
Pfizer’s non-coronavirus drug
Pfizer said its operating revenue rose 8% in the quarter, excluding coronavirus-related products.
The company said some of the growth was driven by new vaccines against respiratory syncytial virus that came to market in the third quarter for seniors and pregnant women. The shot, known as “Abrysvo”, generated sales of $515 million in the fourth quarter.
The company said strong sales of its Vindakel drug, used to treat certain types of cardiomyopathy, a disease of the heart muscle, also boosted earnings. Sales of these medicines were $961 million, an increase of 41% from the fourth quarter of 2022.
Pfizer also said growth was driven by Eliquis, a blood thinner it co-markets with Bristol-Myers Squibb. The drug’s sales for the quarter were $1.61 billion, an increase of 9% from the same period last year.
The results cap a turbulent year for the company, which previously saw its profits soar after delivering the world’s first coronavirus vaccine.
Pfizer’s stock price fell about 40% in 2023 as global demand for its shots and other coronavirus-related products plummeted, resulting in the company significantly lowering its full-year earnings forecast and writing down inventory. The company incurred billions of dollars in expenses and launched a major undertaking. Cost reduction program.
Additionally, Pfizer’s future in the fast-growing weight-loss drug market began to look bleak last month. The company discontinued its twice-daily experimental weight loss drug after obese patients who took the drug lost significant weight, but the drug was not tolerated in mid-term clinical studies.
Investors are waiting for the company to release data on a once-daily drug called danuglipron in the first half of this year.
Pfizer hopes its $34 billion acquisition of Seagen, which was formally completed during the fourth quarter, will restore investor confidence. Last month, the company revealed plans to double down on cancer treatments, after revealing plans to launch a new oncology division in early 2024 that will include SeeGen.
But Wall Street remains skeptical about whether Pfizer can turn things around. The company’s stock price has already fallen more than 4% since the beginning of the year, giving it a market capitalization of about $155 billion.
Pfizer will hold an earnings call with investors on Tuesday at 10 a.m. ET.
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