Pfizer records a loss of US$3.36 billion in the last quarter, but remains optimistic for 2024
30 Janeiro 2024 - 12:17PM
IH Market News
In the last quarter, Pfizer (NYSE:PFE) reported a loss of $3.36
billion, contrasting with the previous year’s gain of $4.99
billion. During the October-December period, the pharmaceutical
company brought in $14.2 billion in revenue, representing a 41%
decrease compared to the same quarter in 2022.
Albert Bourla, CEO of Pfizer, expressed delight with the solid
performance of the company’s product range, highlighting the
positive influence of new launches and the growth of key
brands.
Excluding products linked to COVID-19, such as the Comirnaty
vaccine and the antiviral Paxlovid, Pfizer highlighted an 8% growth
in revenues in an annual comparison. Products such as Abrysvo,
Vyndaqel and Eliquis were particularly successful in sales.
Throughout the year, Pfizer recorded a net profit of US$2.11
billion, a drastic reduction of 93% compared to 2022. Total revenue
from January to December reached US$58.4 billion, marking a drop of
42 % compared to the previous year.
The company maintained its forecasts for 2024, announced in
December, which include an expected revenue of between US$58.5
billion and US$61 billion, and an adjusted earnings per share of
between US$2.05 and US$2. .25.
Pfizer shares fell 1.3% in morning trading after opening more
than 2% higher.
Investors fled Pfizer last year as concerns about the pandemic
eased and billions of dollars in sales of COVID-19 vaccines and
treatments disappeared. The company responded with a recent
purchase of cancer pharmaceutical company Seagen, a $4 billion
cost-cutting program and an internal restructuring.
Jeff Jonas, portfolio manager at Gabelli Funds, said he was
concerned about the company’s performance outside of COVID after
revenues from products such as breast cancer treatment Ibrance and
pneumonia vaccine Prevnar were lower than expected.
“Historically, I thought they had one of the best sales forces
in the industry and that they at least managed to sell and execute
drugs very well, even if their research and development was perhaps
not always the best. there recently,” said Jonas.
Pfizer CEO Albert Bourla said the company is looking to leverage
a “more focused and efficient structure” to drive the growth of new
medicines. Bourla previously expressed disappointment with the
rollout of the new RSV vaccine Abrysvo, which lagged significantly
behind a rival shot from GSK.
Ibrance, which faces intense competition from rival treatments,
saw sales fall 12.6% to $1.12 billion in the quarter, below
analysts’ forecasts of $1.23 billion.
Prevnar generated sales of $1.61 billion, below estimates of $2
billion. The company cited lower demand and “unfavorable timing of
customer orders” for the shortfall.
Revenue from COVID products, the antiviral treatment Paxlovid
and the Comirnaty vaccine, reached US$12.5 billion in 2023, meeting
the company’s own goals for the year, but far from the peak of
US$57 billion accumulated in 2022.
Pfizer renegotiated a contract in October allowing the U.S.
government to return unused stock of Paxlovid. The company reported
a smaller-than-expected revenue turnaround of $3.5 billion in the
quarter as the U.S. returned about 6.5 million treatments.
Previously, it had forecast a revenue reversal of US$4.2 billion
based on the expected return of approximately 7.9 million
courses.
A Pfizer spokesperson said there had been more use of the
two-drug treatment than anticipated. Still, the window for Paxlovid
returns from the U.S. government remains open and the company could
make another financial adjustment in the current quarter.
The company maintained its 2024 adjusted earnings and sales
forecasts of $2.05 to $2.25 per share and earnings of $58.5 billion
to $61.5 billion.
This includes a $3.1 billion contribution from cancer drugmaker
Seagen and $8 billion in sales from Paxlovid and the COVID-19
vaccine Comirnaty, which it manufactures with German partner
BioNTech.
The company has been reducing research and development spending
as part of its cost reduction program. R&D expenses fell 22% in
the quarter to $2.82 billion, driven by lower payroll spending, as
well as reductions in its vaccine and rare disease programs.
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