Albert Bourla, who serves as both chairman and CEO for Pfizer, recently spoke at The Wall Street Journal’s Future of Everything Festival in New York City on May 22, 2024.
On Tuesday, Pfizer announced its impressive fourth-quarter earnings results, surpassing expectations with both its revenue figures and earnings per share. The company’s successful performance was bolstered by higher-than-anticipated sales of its Covid products as well as effective cost-cutting measures. Here’s a quick rundown of what Pfizer reported for the last quarter compared to Wall Street’s predictions, as gathered from LSEG analysts: adjusted earnings per share stood at 63 cents against the expected 46 cents, while revenue reached $17.76 billion, exceeding the anticipated $17.36 billion. This positive news caused Pfizer shares to rise by 2% in pre-market trading on Tuesday.
Pfizer’s latest results mark a significant chapter for the pharmaceutical giant as it continues its strategy of widespread cost reductions, following the sharp decline in its Covid-related business and stock market performance over the past two years. The company mentioned that it is well on its way towards securing a total of $4.5 billion in net cost savings by the close of 2025. Looking at the fourth-quarter performance, Pfizer reported a net income of $410 million, equivalent to 7 cents per share, which stands in contrast to a net loss of $3.37 billion, or 60 cents per share, from the same period last year.
On an adjusted basis, excluding certain items like restructuring charges, the company recorded earnings per share of 63 cents. Pfizer’s quarterly revenue saw a 22% increase from last year, hitting $17.76 billion. The company reaffirmed its 2025 full-year outlook, maintaining its December forecast with projected sales between $61 billion and $64 billion, attributing a similar performance to its Covid products as seen in 2024. However, they anticipate a $1 billion impact on sales due to changes in Medicare tied to the Inflation Reduction Act. Without one-time items, Pfizer anticipates its 2025 earnings per share to range from $2.80 to $3.
However, it’s likely Wall Street’s focus remains on the longevity of Pfizer’s financial health and the pipeline of its drugs. Investors are particularly interested in how Pfizer plans to capture a share of the lucrative weight loss drug market through its once-daily experimental obesity pill, danuglipron. Meanwhile, Pfizer managed to avoid a proxy battle with activist investor Starboard Value, which holds about a $1 billion stake in the company, as the period for nominating board members this year has passed.
The above-mentioned quarterly success for Pfizer had contributions from unexpectedly high demand for its Covid-19 products. For instance, the antiviral medication Paxlovid generated $727 million in sales this quarter, a sharp turnaround from the previous year when a $3.1 billion revenue loss was recorded due to a planned return of approximately 6.5 million doses to the U.S. government. This growth was primarily driven by strong demand during a recent Covid surge in the U.S. and a one-time contract with the federal government for 1 million doses. Analysts had projected Paxlovid sales to reach $630.7 million, as per StreetAccount estimates. Meanwhile, Pfizer’s Covid vaccine sales reported $3.4 billion, though this figure signifies a decline of $2 billion from the same quarter last year, largely due to a decrease in global vaccinations and reduced contracted doses.
Turning to Pfizer’s non-Covid offerings, their fourth-quarter revenue rose 12% on an operational basis, spurred by sales from Seagen’s approved cancer treatments. These drugs, acquired in 2023 for an eye-popping $43 billion, accounted for $915 million this quarter, a significant jump from $132 million in the previous year. Additionally, Pfizer saw a revenue boost from its Vyndaqel line for treating a heart muscle disease known as cardiomyopathy, which achieved $1.55 billion in sales—a 61% increase from the last year’s fourth quarter. Analysts’ expectations placed this figure at $1.51 billion, according to StreetAccount.
Pfizer also benefited from strong sales of Eliquis, a blood thinner co-marketed with Bristol Myers Squibb, raking in $1.83 billion this quarter, which is a 14% rise from last year and above the analyst expectation of $1.67 billion. However, the sales trajectory for Eliquis could face challenges in 2026 when new pricing comes into effect for certain Medicare recipients, a result of federal negotiations under President Biden’s Inflation Reduction Act—a move opposed by many in the pharmaceutical industry.
Remarkably, Pfizer’s respiratory syncytial virus (RSV) vaccine, known as Abrysvo, accumulated $198 million this quarter, reflecting a 62% decrease from the previous year. This downward trend is attributed to reduced vaccination rates among older adults in the U.S., influenced by CDC recommendations which narrowed the eligible market for RSV vaccinations. The CDC’s advisory panel had recommended vaccines for adults aged 75 and older, with a conditional recommendation for those aged 60 to 74 who are at higher risk. According to StreetAccount, analysts had expected this vaccine to generate $459.5 million in sales.
