Pfizer Inc. (PFE) reported its financial results for the first quarter of 2024, showcasing a decline in adjusted earnings per share (EPS) primarily attributed to lower revenues from its COVID-19 products. Despite the decrease, Pfizer surpassed consensus estimates on both EPS and sales figures.
The company’s adjusted EPS came in at $0.82, representing a 33% year-over-year decrease, but still outperforming the consensus estimate of $0.54. Sales totaled $14.9 billion, marking a 20% decline, yet exceeding the consensus estimate of $14.2 billion.
Pfizer’s COVID-19 vaccine, Comirnaty, generated $354 million in revenue during the quarter, a significant 88% reduction compared to the same period last year. This decline is primarily attributed to lower contractual deliveries, reduced demand in international markets, and lower U.S. volumes, reflecting the expected seasonal demand for vaccinations and the transition to traditional commercial market sales in certain areas, including the U.S.
Paxlovid, Pfizer’s COVID-19 antiviral treatment, also experienced a revenue decline, dropping 50% to $2 billion. Pfizer reiterated its 2024 revenue guidance, projecting $58.5 billion-$61.5 billion, including $8 billion from COVID-19 products. The company anticipates that 90% of vaccine sales will occur in the second half of the year, primarily in the fourth quarter.
Pfizer’s adjusted EPS guidance for 2024 is now $2.15-$2.35, higher than the previous forecast of $2.05 to $2.25 and above the consensus estimate of $2.76.
In a move reflecting the industry’s trend towards bypassing traditional distribution channels, Pfizer is developing an online platform that will allow patients to directly order medications, including Paxlovid and a migraine nasal spray. Scheduled for launch later this year, the platform will connect U.S. customers with independent telehealth consultants for prescription services. A drug-dispensing partner will then fulfill and ship the prescriptions, making the process more streamlined for patients.
Pfizer’s direct-to-consumer strategy aligns with the evolving healthcare landscape and the company’s strategic priorities. Albert Bourla, Pfizer’s CEO, has emphasized this approach as a key component of the company’s agenda for the upcoming year. Notably, Eli Lilly And Co. (LLY) recently launched a similar platform, allowing patients to obtain weight loss drug prescriptions through telehealth providers.
In summary, Pfizer’s first-quarter earnings report shows lower COVID-19 product revenues but beat consensus estimates. The company’s updated guidance and direct-to-consumer strategy highlight its focus on adapting to changing market dynamics.
