Pfizer Inc. (NYSE: PFE) inches down in early session on Tuesday that It topped first-quarter sales and profit projections, aided by consistent demand for its COVID medications, and confirmed its annual profitability target as it expects fresh treatments to contribute to growth later this year.
According to the corporation, 2023 will be a low point for COVID product sales before perhaps returning to growth in 2024. Sales of the vaccine and associated antiviral tablet exceeded expectations in the first quarter.
Nonetheless, Pfizer did not raise its full-year forecast and forecast significantly lower COVID product sales in the second quarter.
Wells Fargo analyst Mohit Bansal said the unchanged COVID sales projection was a pleasant surprise because he expected Pfizer to reduce it.
Pfizer is investing billions of dollars in research and acquisition of potential blockbuster assets to offset a $17 billion revenue impact from patent expirations for top pharmaceuticals and a fall in demand for its COVID treatments by 2030.
After completing its recent $43 billion takeover of Seagen, the business announced on Tuesday that it will become more balanced in its capital allocation after a succession of deals in the previous two years.
Pfizer said it is on pace to meet its non-COVID revenue growth target of 7% to 9% this year, with the majority of that increase expected to come in the second half, driven by newer products.
According to Citi analyst Andrew Baum, Pfizer’s non-COVID revenue for the quarter fell short of forecasts.
“The outlook for H2 should be brighter given anticipated launches,” Baum predicted.
Pfizer plans to market its RSV vaccine, as well as ulcerative colitis and hair loss medications, by the end of this year, subject to regulatory approval in the United States.
According to Refinitiv statistics, sales of its COVID-19 vaccination Comirnaty fell 77% to $3.06 billion in the third quarter, but surpassed predictions of $2.37 billion.
Paxlovid sales nearly quadrupled to $4.07 billion, above expectations of $3.13 billion, because to high demand in China during the quarter.
The pharmaceutical company anticipates an annual profit of $3.25 to $3.45 per share and COVID product sales of around $21.5 billion. Overall revenue decreased 29% to $18.3 billion in the first quarter, but above projections of $16.59 billion. Excluding adjustments, the US pharmaceutical earned $1.23 per share, which was more than expected.
