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Pfizer (PFE - Free Report) reported first-quarter 2024 adjusted earnings per share of 82 cents, which comfortably beat the Zacks Consensus Estimate of 56 cents per share. Earnings declined 33% year over year due to lower revenues.
Revenues came in at $14.88 billion, down 20% from the year-ago quarter on a reported basis, reflecting an operational decline of 19% and a negative currency impact of 1%. Total revenues however beat the Zacks Consensus Estimate of $13.86 billion.
The revenue decline, as expected, was due to a steep drop in revenues from its COVID-19 products, Comirnaty and Paxlovid, on lower demand.
Pfizer records direct sales and alliance revenues from its partner, BioNTech (BNTX - Free Report) , for the COVID-19 vaccine, Comirnaty, and product revenues from its oral antiviral pill for COVID, Paxlovid.
International revenues declined 44% to $5.37 billion. U.S. revenues rose 9% to $9.51 billion.
Adjusted selling, informational and administrative (SI&A) expenses rose 3% (operationally) in the quarter to $3.45 billion. Adjusted R&D expenses declined 1% to $2.48 billion.
Segment Discussion
Pfizer reports its revenues under three broad sub-segments of its Biopharma operating segment — Primary Care, Specialty Care and Oncology. Sales of the Primary Care segment declined 37% operationally to $7.21 billion. The Specialty Care unit recorded sales of $3.84 billion, up 7%. Sales of Oncology rose 19% to $3.55 billion.
Primary Care
In Primary Care, alliance revenues and direct sales from Bristol-Myers for blood-thinning treatment Eliquis rose 10% to $2.04 billion. Alliance revenues from Eliquis beat the Zacks Consensus Estimate of $1.94 billion as well as our model estimate of $1.89 billion.
Global Prevnar family revenues rose 7% to $1.69 billion due to the favorable timing of government orders for pediatric patients in the United States, higher demand in the private market and strong uptake of the adult indication in some ex-U.S. markets. The Prevnar family includes revenues from Prevnar 13/Prevenar 13 (pediatric and adult) and Prevnar 20 (adult and pediatric). Prevnar revenues beat the Zacks Consensus Estimate of $1.60 billion as well as our model estimate of $1.55 billion. Prevnar sales rose 6% in the United States and 8% in international markets.
Direct sales and alliance revenues from BioNTech for Comirnaty were $354 million in the quarter, down 88% year over year. Comirnaty sales declined 64% in the United States due to lower volumes on the anticipated seasonality of demand and the transition to traditional commercial markets. Comirnaty sales declined 91% outside U.S. markets due to lower demand and contracted deliveries. Comirnaty sales missed the Zacks Consensus Estimate of $491 million and our estimate of $469.1 million.
Paxlovid revenues declined 50% to $2.04 billion. Paxlovid revenues significantly beat the Zacks Consensus Estimate of $865 million and our estimate of $909.2 million. Paxlovid revenues reflected a $771 million favorable adjustment in the quarter related to the return of some unused EUA-labeled treatment courses from the U.S. government.
Newly acquired product Nurtec ODT/Vydura contributed $178 million in the first quarter, much less than $282 million in the previous quarter. Nurtec ODT/Vydura was added to Pfizer’s portfolio with the acquisition of the majority of Biohaven in 2022.
Among the new products, Pfizer’s RSV vaccine, Abrysvo, recorded sales of $145 million in the first quarter compared with $515 million in the previous quarter. Abrysvo was approved to help protect older adults and infants through maternal immunization in the United States as well as the EU in 2023.
Specialty Care
Global Vyndaqel family revenues of $1.14 billion rose 66% year over year. Vyndaqel family includes global revenues from Vyndaqel as well as revenues for Vyndamax in the United States and Vynmac in Japan. Vyndaqel family sales beat the Zacks Consensus Estimate of $952.0 million as well as our model estimate of $907.6 million.
Xeljanz sales declined 17% to $194 million. Enbrel revenues declined 18% to $159 million due to continued biosimilar competition in key European markets and Japan.
New product, Oxbryta, generated sales of $84 million in the first quarter of 2024 compared with $96 million in the previous quarter. Oxbryta was added with the October 2022 acquisition of Global Blood Therapeutics.
Oncology
Pfizer’s top-line numbers in the first quarter of 2024 included revenues from the acquisition of Seagen, which closed in mid-December 2023. The acquisition added Seagen’s antibody-drug conjugates or ADCs — Adcetris, Padcev, Tukysa and Tivdak — to Pfizer’s cancer portfolio. Adcetris, Padcev, Tukysa and Tivdak contributed $257 million, $341 million, $106 million and $28 million, respectively, to Pfizer’s oncology revenues in the first quarter.
In Oncology, Ibrance revenues declined 7% year over year to $1.05 billion. Lower demand trends globally due to competitive pressure and price decreases in some developed international markets hurt sales growth. Ibrance revenues slightly beat the Zacks Consensus Estimate of $1.03 billion and our estimate of $1.04 billion.
Xtandi recorded alliance revenues of $418 million in the quarter, up 23% year over year. Inlyta revenues were $237 million in the quarter, down 8%.
2024 Guidance
Pfizer maintained its revenue guidance for 2024 but raised its adjusted EPS guidance.
Adjusted earnings are expected in the range of $2.15 to $2.35 versus the prior expectation of $2.05 to $2.25 per share.
Pfizer expects total revenues to be in the range of $58.5 to $61.5 billion in 2024, almost flat from 2023 levels.
The 2024 revenue guidance includes $8 billion in potential combined revenues for Paxlovid and Comirnaty. The $8 billion combined guidance comprises $5 billion in sales from Comirnaty and $3 billion from Paxlovid.
The total revenue guidance also includes $3.1 billion in expected revenues from Seagen.
Research and development expense is expected in the range of $11.0 to $12.0 billion in 2024. SI&A spending is expected in the range of $13.8 billion to $14.8 billion. The adjusted tax rate is expected to be approximately 15% in 2024.
Our Take
Pfizer’s first-quarter results were strong as it beat estimates for earnings as well as sales. The company raised its 2024 earnings guidance while retaining revenue expectations.
While sales of COVID products declined due to lower demand, some key non-COVID products like Prevnar, Vyndaqel and Eliquis, new launches like Abrysvo and newly acquired products from Seagen boosted the top line in the first quarter. Sales of all key products like Prevnar, Vyndaqel and Eliquis beat estimates. Seagen drugs contributed $742 million to the top line in the first quarter. Revenues from Pfizer’s non-COVID products rose 11% operationally in the first quarter.
Pfizer’s shares were up around 4% in pre-market trading. In the past year, Pfizer’s stock has declined 34.7% against an increase of 18.0% for the industry.
Image Source: Zacks Investment Research
2023 was a record year for Pfizer in terms of FDA approvals. It received nine new medicine/vaccine approvals.
Pfizer’s latest key new product approvals/launches are Abrysvo RSV vaccine, Velsipity (etrasimod), a once-daily pill for ulcerative colitis, Penbraya pentavalent meningococcal vaccine, Zavzpret nasal spray for migraine, Litfulo (ritlecitinib) for severe alopecia areata, Elrexfio (elranatamab) for relapsed/refractory multiple myeloma and the latest one being Beqvez (fidanacogene elaparvovec) a one-time gene therapy for hemophilia B approved last month.
Pfizer expects better non-COVID operational revenue growth in the future quarters, driven by its key in-line products like Prevnar, Vyndaqel and Eliquis, new launches like Abrysvo, Velsipity, Penbraya, Zavzpret, as well as newly acquired products from Seagen. Also, Pfizer expects cost cuts and internal restructuring, including layoffs, to deliver savings of $4 billion in 2024
In the past 60 days, the Zacks Consensus Estimate for ANI Pharmaceuticals has improved from $4.25 per share to $4.43 per share. For 2025, earnings estimates have improved from $4.83 per share to $5.04 per share in the past 60 days. In the past year, shares of ANIP have risen 73.1%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters, delivering a four-quarter average earnings surprise of 109.06 %.
In the past 60 days, the Zacks Consensus Estimate for Ligand Pharmaceuticals has improved from $4.42 per share to $4.56 per share. For 2025, earnings estimates have improved from $5.11 per share to $5.27 per share in the past 60 days. In the past year, shares of LGND have declined 8.9%
Earnings of Ligand Pharmaceuticals beat estimates in each of the last four quarters. LGND delivered a four-quarter average earnings surprise of 84.81%
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Pfizer (PFE) Q1 Earnings & Sales Top, EPS Guidance Raised
Pfizer (PFE - Free Report) reported first-quarter 2024 adjusted earnings per share of 82 cents, which comfortably beat the Zacks Consensus Estimate of 56 cents per share. Earnings declined 33% year over year due to lower revenues.
Revenues came in at $14.88 billion, down 20% from the year-ago quarter on a reported basis, reflecting an operational decline of 19% and a negative currency impact of 1%. Total revenues however beat the Zacks Consensus Estimate of $13.86 billion.
The revenue decline, as expected, was due to a steep drop in revenues from its COVID-19 products, Comirnaty and Paxlovid, on lower demand.
Pfizer records direct sales and alliance revenues from its partner, BioNTech (BNTX - Free Report) , for the COVID-19 vaccine, Comirnaty, and product revenues from its oral antiviral pill for COVID, Paxlovid.
International revenues declined 44% to $5.37 billion. U.S. revenues rose 9% to $9.51 billion.
Adjusted selling, informational and administrative (SI&A) expenses rose 3% (operationally) in the quarter to $3.45 billion. Adjusted R&D expenses declined 1% to $2.48 billion.
Segment Discussion
Pfizer reports its revenues under three broad sub-segments of its Biopharma operating segment — Primary Care, Specialty Care and Oncology. Sales of the Primary Care segment declined 37% operationally to $7.21 billion. The Specialty Care unit recorded sales of $3.84 billion, up 7%. Sales of Oncology rose 19% to $3.55 billion.
Primary Care
In Primary Care, alliance revenues and direct sales from Bristol-Myers for blood-thinning treatment Eliquis rose 10% to $2.04 billion. Alliance revenues from Eliquis beat the Zacks Consensus Estimate of $1.94 billion as well as our model estimate of $1.89 billion.
Global Prevnar family revenues rose 7% to $1.69 billion due to the favorable timing of government orders for pediatric patients in the United States, higher demand in the private market and strong uptake of the adult indication in some ex-U.S. markets. The Prevnar family includes revenues from Prevnar 13/Prevenar 13 (pediatric and adult) and Prevnar 20 (adult and pediatric). Prevnar revenues beat the Zacks Consensus Estimate of $1.60 billion as well as our model estimate of $1.55 billion. Prevnar sales rose 6% in the United States and 8% in international markets.
Direct sales and alliance revenues from BioNTech for Comirnaty were $354 million in the quarter, down 88% year over year. Comirnaty sales declined 64% in the United States due to lower volumes on the anticipated seasonality of demand and the transition to traditional commercial markets. Comirnaty sales declined 91% outside U.S. markets due to lower demand and contracted deliveries. Comirnaty sales missed the Zacks Consensus Estimate of $491 million and our estimate of $469.1 million.
Paxlovid revenues declined 50% to $2.04 billion. Paxlovid revenues significantly beat the Zacks Consensus Estimate of $865 million and our estimate of $909.2 million. Paxlovid revenues reflected a $771 million favorable adjustment in the quarter related to the return of some unused EUA-labeled treatment courses from the U.S. government.
Newly acquired product Nurtec ODT/Vydura contributed $178 million in the first quarter, much less than $282 million in the previous quarter. Nurtec ODT/Vydura was added to Pfizer’s portfolio with the acquisition of the majority of Biohaven in 2022.
Among the new products, Pfizer’s RSV vaccine, Abrysvo, recorded sales of $145 million in the first quarter compared with $515 million in the previous quarter. Abrysvo was approved to help protect older adults and infants through maternal immunization in the United States as well as the EU in 2023.
Specialty Care
Global Vyndaqel family revenues of $1.14 billion rose 66% year over year. Vyndaqel family includes global revenues from Vyndaqel as well as revenues for Vyndamax in the United States and Vynmac in Japan. Vyndaqel family sales beat the Zacks Consensus Estimate of $952.0 million as well as our model estimate of $907.6 million.
Xeljanz sales declined 17% to $194 million. Enbrel revenues declined 18% to $159 million due to continued biosimilar competition in key European markets and Japan.
New product, Oxbryta, generated sales of $84 million in the first quarter of 2024 compared with $96 million in the previous quarter. Oxbryta was added with the October 2022 acquisition of Global Blood Therapeutics.
Oncology
Pfizer’s top-line numbers in the first quarter of 2024 included revenues from the acquisition of Seagen, which closed in mid-December 2023. The acquisition added Seagen’s antibody-drug conjugates or ADCs — Adcetris, Padcev, Tukysa and Tivdak — to Pfizer’s cancer portfolio. Adcetris, Padcev, Tukysa and Tivdak contributed $257 million, $341 million, $106 million and $28 million, respectively, to Pfizer’s oncology revenues in the first quarter.
In Oncology, Ibrance revenues declined 7% year over year to $1.05 billion. Lower demand trends globally due to competitive pressure and price decreases in some developed international markets hurt sales growth. Ibrance revenues slightly beat the Zacks Consensus Estimate of $1.03 billion and our estimate of $1.04 billion.
Xtandi recorded alliance revenues of $418 million in the quarter, up 23% year over year. Inlyta revenues were $237 million in the quarter, down 8%.
2024 Guidance
Pfizer maintained its revenue guidance for 2024 but raised its adjusted EPS guidance.
Adjusted earnings are expected in the range of $2.15 to $2.35 versus the prior expectation of $2.05 to $2.25 per share.
Pfizer expects total revenues to be in the range of $58.5 to $61.5 billion in 2024, almost flat from 2023 levels.
The 2024 revenue guidance includes $8 billion in potential combined revenues for Paxlovid and Comirnaty. The $8 billion combined guidance comprises $5 billion in sales from Comirnaty and $3 billion from Paxlovid.
The total revenue guidance also includes $3.1 billion in expected revenues from Seagen.
Research and development expense is expected in the range of $11.0 to $12.0 billion in 2024. SI&A spending is expected in the range of $13.8 billion to $14.8 billion. The adjusted tax rate is expected to be approximately 15% in 2024.
Our Take
Pfizer’s first-quarter results were strong as it beat estimates for earnings as well as sales. The company raised its 2024 earnings guidance while retaining revenue expectations.
While sales of COVID products declined due to lower demand, some key non-COVID products like Prevnar, Vyndaqel and Eliquis, new launches like Abrysvo and newly acquired products from Seagen boosted the top line in the first quarter. Sales of all key products like Prevnar, Vyndaqel and Eliquis beat estimates. Seagen drugs contributed $742 million to the top line in the first quarter. Revenues from Pfizer’s non-COVID products rose 11% operationally in the first quarter.
Pfizer’s shares were up around 4% in pre-market trading. In the past year, Pfizer’s stock has declined 34.7% against an increase of 18.0% for the industry.
Image Source: Zacks Investment Research
2023 was a record year for Pfizer in terms of FDA approvals. It received nine new medicine/vaccine approvals.
Pfizer’s latest key new product approvals/launches are Abrysvo RSV vaccine, Velsipity (etrasimod), a once-daily pill for ulcerative colitis, Penbraya pentavalent meningococcal vaccine, Zavzpret nasal spray for migraine, Litfulo (ritlecitinib) for severe alopecia areata, Elrexfio (elranatamab) for relapsed/refractory multiple myeloma and the latest one being Beqvez (fidanacogene elaparvovec) a one-time gene therapy for hemophilia B approved last month.
Pfizer expects better non-COVID operational revenue growth in the future quarters, driven by its key in-line products like Prevnar, Vyndaqel and Eliquis, new launches like Abrysvo, Velsipity, Penbraya, Zavzpret, as well as newly acquired products from Seagen. Also, Pfizer expects cost cuts and internal restructuring, including layoffs, to deliver savings of $4 billion in 2024
Zacks Rank and Stocks to Consider
Pfizer has a Zacks Rank #3 (Hold) currently.
Pfizer Inc. Price and Consensus
Pfizer Inc. price-consensus-chart | Pfizer Inc. Quote
Some better-ranked stocks in the healthcare sector are ANI Pharmaceuticals (ANIP - Free Report) and Ligand Pharmaceuticals (LGND - Free Report) , sporting a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for ANI Pharmaceuticals has improved from $4.25 per share to $4.43 per share. For 2025, earnings estimates have improved from $4.83 per share to $5.04 per share in the past 60 days. In the past year, shares of ANIP have risen 73.1%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters, delivering a four-quarter average earnings surprise of 109.06 %.
In the past 60 days, the Zacks Consensus Estimate for Ligand Pharmaceuticals has improved from $4.42 per share to $4.56 per share. For 2025, earnings estimates have improved from $5.11 per share to $5.27 per share in the past 60 days. In the past year, shares of LGND have declined 8.9%
Earnings of Ligand Pharmaceuticals beat estimates in each of the last four quarters. LGND delivered a four-quarter average earnings surprise of 84.81%