Pfizer Inc. (PFE) delivered a strong performance in the third quarter, exceeding analysts’ expectations on both earnings and revenue. The pharmaceutical giant reported adjusted earnings per share (EPS) of $1.06, a significant turnaround from a loss of 17 cents per share in the same period last year. This comfortably beat the consensus estimate of $0.62.
Revenue surged to $17.70 billion, marking a 31% year-over-year increase (32% operationally). This performance surpassed analysts’ forecasts of $14.95 billion. The impressive growth was primarily driven by the contributions of Paxlovid, Pfizer’s antiviral treatment for COVID-19, along with several recently acquired products, key existing products, and new product launches.
Excluding the impact of Paxlovid and Comirnaty (Pfizer’s COVID-19 vaccine), revenues reached $13.6 billion, representing a 14% operational increase compared to the previous year.
Key Drivers of Growth:
*
Paxlovid:
The third quarter saw Paxlovid generate $2.7 billion in revenue, a $2.5 billion operational increase from the same period last year. This robust performance was primarily driven by strong demand, particularly in the United States. The surge in demand coincided with a recent global wave of COVID-19, leading to increased utilization of the drug. Additionally, a one-time contractual delivery of one million treatment courses to the U.S. Strategic National Stockpile in the third quarter significantly boosted sales.*
Comirnaty:
Comirnaty revenue reached $1.4 billion, demonstrating a 9% increase. This growth was attributed to the timing of stocking due to the earlier approval of the new variant vaccine in the U.S. in 2024 compared to 2023. However, lower contractual deliveries and demand in international markets partially offset this positive trend.*
Other Key Products:
The Vyndaqel family of drugs achieved sales of $1.45 billion, representing a substantial 62% increase. Eliquis, a blood thinner drug, generated sales of $1.62 billion, reflecting an 8% growth.*
Seagen Acquisition:
Pfizer’s acquisition of Seagen in December 2023 contributed $854 million in global revenue during the quarter.Revised Guidance:
Encouraged by its strong performance, Pfizer has raised its revenue forecast for 2024. The company now anticipates revenue between $61 billion and $64 billion, up from its previous guidance of $59.5 billion to $62.5 billion. This adjustment reflects the expectation of approximately $10 billion in revenue from Comirnaty and Paxlovid (compared to the previous estimate of $8.5 billion).Excluding Comirnaty and Paxlovid revenue, and incorporating the contribution from Seagen, Pfizer expects full-year 2024 operational revenue growth of 9% to 11% compared to 2023. This growth guidance accounts for the impact of the previously announced global withdrawal of Oxbryta.
Pfizer has also increased its adjusted EPS guidance for 2024 to $2.75 to $2.95, compared to the previous range of $2.45 to $2.65. This revised guidance exceeds the consensus estimate of $2.65.
