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Pfizer (PFE - Free Report) reported third-quarter 2024 adjusted earnings per share of $1.06, which crushed the Zacks Consensus Estimate of 64 cents per share. The company had recorded an adjusted loss of 17 cents per share in the year-ago quarter.
Revenues came in at $17.7 billion, up 31% from the year-ago quarter on a reported basis, reflecting an operational increase of 32% and a negative currency impact of 1%. Total revenues significantly beat the Zacks Consensus Estimate of $15.19 billion.
Higher sales of Pfizer’s key non-COVID products like Vyndaqel and Eliquis, new product launches and newly acquired products from Seagen, coupled with an unexpected increase in revenues from COVID-19 products, drove the top line in the quarter. Sales of key drugs Xeljanz and Ibrance declined in the quarter.
Pfizer's COVID revenues include direct sales and alliance revenues from its partner, BioNTech (BNTX - Free Report) , for Comirnaty and product revenues from its oral antiviral pill for COVID-19, Paxlovid.
International revenues declined 6% on an operational basis to $5.64 billion. U.S. revenues rose 50% to $12.06 billion.
Adjusted selling, informational and administrative (SI&A) expenses rose 1% (operationally) in the quarter to $3.22 billion. Adjusted R&D expenses declined 4% to $2.56 billion.
PFE’s 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 rose 44% operationally to $9.06 billion. The Specialty Care unit recorded sales of $4.29 billion, up 15%. Sales of Oncology rose 31% to $4.04 billion.
PFE Primary Care Sales
In Primary Care, alliance revenues and direct sales from Bristol-Myers (BMY - Free Report) for blood-thinning treatment Eliquis rose 9% to $1.62 billion. Alliance revenues from Bristol-Myers-partnered Eliquis beat the Zacks Consensus Estimate of $1.54 billion as well as our model estimate of $1.53 billion.
Global Prevnar family revenues declined 2% to $1.8 billion. Prevnar revenues were in line with the Zacks Consensus Estimate as well as our model estimate. Prevnar sales rose 1% in the United States but declined 7% in international markets.
Direct sales and alliance revenues from BioNTech for Comirnaty were $1.42 billion in the quarter, up 9% year over year, driven by the favorable timing of stocking in the United States, partially offset by lower demand in international markets. Comirnaty sales beat the Zacks Consensus Estimate of $1.03 billion and our estimate of $1.13 billion.
Paxlovid revenues were $2.7 billion compared with $202 million in the year-ago quarter, driven by strong demand in the United States backed by a recent COVID wave. Also, a one-time contractual delivery to the U.S. Strategic National Stockpile led to sales growth. Paxlovid revenues beat the Zacks Consensus Estimate of $1.3 billion.
The newly acquired product Nurtec ODT/Vydura contributed $337 million in the quarter, which is up 45% year over year.
Among the new products, Pfizer’s RSV vaccine, Abrysvo, recorded sales of $356 million in the third quarter compared with $56 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. Abrysvo revenues beat the Zacks Consensus Estimate of $200 million as well as our model estimate is $280 million.
PFE’s Specialty Care Sales
Global Vyndaqel family revenues of $1.45 billion rose 63% year over year, driven by continued demand growth, primarily in the United States and developed Europe. The 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 $1.41 billion as well as our model estimate of $1.38 billion.
Xeljanz sales declined 35% to $321 million. Sickle cell disease drug Oxbryta generated sales of $17 million in the third quarter of 2024, down 80% year over year. Oxbryta was added with the October 2022 acquisition of Global Blood Therapeutics. In September, Pfizer announced that it is voluntarily withdrawing all lots of Oxbryta from the global markets where it is approved.
PFE’s Oncology Sales
Pfizer’s top-line numbers in the third 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 $268 million, $409 million, $124 million and $34 million, respectively, to Pfizer’s oncology revenues in the third quarter.
In Oncology, Ibrance revenues declined 12% year over year to $1.09 billion. Lower demand trends globally due to competitive pressure and price decreases in some developed international markets hurt sales growth. Ibrance revenues missed the Zacks Consensus Estimate of $1.1 billion and our estimate of $1.13 billion.
Xtandi recorded alliance revenues of $561 million in the quarter, up 28% year over year. Inlyta revenues were $247 million in the quarter, down 1%.
PFE Ups 2024 Sales and EPS Guidance
Pfizer raised its revenue and earnings guidance for 2024.
Adjusted earnings are expected in the range of $2.75 to $2.95 versus the prior expectation of $2.45 to $2.65 per share.
Pfizer expects total revenues to be in the range of $61.0 to $64.0 billion versus the prior expectation of $59.5 billion to $62.5 billion.
The 2024 revenue guidance includes $10.5 billion in potential combined revenues for Paxlovid and Comirnaty, higher than the prior expectation of $8.5 billion due to higher potential revenues from Paxlovid. The $10.5 billion combined guidance comprises $5 billion in sales from Comirnaty and $5.5 billion (previously $3.5 billion) from Paxlovid.
Excluding revenues from Comirnaty and Paxlovid but including revenues from Seagen, Pfizer expects total revenues to increase 9% to 11% on an operational basis. The guidance was maintained despite the potential negative impact of Oxbryta withdrawal.
Research and development expense is expected to be in the range of $11.0 to $12.0 billion in 2024 (maintained). SI&A spending is expected in the range of $13.8 billion to $14.8 billion (maintained). The adjusted tax rate is expected to be approximately 13% in 2024 (maintained).
Our Take on PFE’s Results
Pfizer’s third-quarter results were strong as it beat estimates for earnings as well as sales. Sales of key products like Vyndaqel and Eliquis beat estimates, while Prevnar missed the same. COVID products also contributed to top-line growth in the quarter amid heightened demand for Paxlovid during the recent COVID-19 wave. Seagen drugs contributed $854 million to the top line in the third quarter. Revenues from Pfizer’s non-COVID products rose 14% operationally in the third quarter, following a strong performance in the first half. The company also raised its 2024 earnings and revenue expectations for the second time this year.
Pfizer’s shares were up around 1.5% in pre-market trading.
So far this year, Pfizer’s stock has risen 0.2% compared with an increase of 17.0% for the industry.
Image Source: Zacks Investment Research
After a couple of tough years, Pfizer is gradually making a comeback.
Though demand for its COVID products is declining, Pfizer’s non-COVID operational revenues improved in the first three quarters of 2024, driven by its key in-line products like Vyndaqel and Eliquis, new launches like Abrysvo and newly acquired products, including those acquired from Seagen (December 2023).
Pfizer faces its share of challenges, the key being declining sales of its COVID-19 products. Pfizer also expects a significant impact from the loss of patent exclusivity in the 2026-2030 period, as several of its key products face patent expirations. However, its non-COVID drugs and potential contribution from new and newly acquired products have started to drive growth, with the trend expected to continue.
Also, Pfizer expects cost cuts and internal restructuring, including layoffs, to deliver savings of $4 billion in 2024.
It remains to be seen if the strong third-quarter results and guidance increase can silence activist investor Starboard, which recently called out Pfizer’s board of directors to take action against the latter’s management as Pfizer failed to earn sustainable profitability despite cost cuts, new product launches and acquisitions.
The Zacks Consensus Estimate for AstraZeneca’s earnings has risen from $4.05 to $4.07 per share for 2024 over the past 30 days, while that for 2025 has risen from $4.71 per share to $4.72 per share. AstraZeneca’s shares have risen 12.8% year to date.
AstraZeneca beat estimates in three of the last four quarters while missing in one, delivering a four-quarter average earnings surprise of 4.74%.
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Pfizer's Q3 Earnings Beat, Paxlovid Drives Sales Guidance Increase
Pfizer (PFE - Free Report) reported third-quarter 2024 adjusted earnings per share of $1.06, which crushed the Zacks Consensus Estimate of 64 cents per share. The company had recorded an adjusted loss of 17 cents per share in the year-ago quarter.
Revenues came in at $17.7 billion, up 31% from the year-ago quarter on a reported basis, reflecting an operational increase of 32% and a negative currency impact of 1%. Total revenues significantly beat the Zacks Consensus Estimate of $15.19 billion.
Higher sales of Pfizer’s key non-COVID products like Vyndaqel and Eliquis, new product launches and newly acquired products from Seagen, coupled with an unexpected increase in revenues from COVID-19 products, drove the top line in the quarter. Sales of key drugs Xeljanz and Ibrance declined in the quarter.
Pfizer's COVID revenues include direct sales and alliance revenues from its partner, BioNTech (BNTX - Free Report) , for Comirnaty and product revenues from its oral antiviral pill for COVID-19, Paxlovid.
International revenues declined 6% on an operational basis to $5.64 billion. U.S. revenues rose 50% to $12.06 billion.
Adjusted selling, informational and administrative (SI&A) expenses rose 1% (operationally) in the quarter to $3.22 billion. Adjusted R&D expenses declined 4% to $2.56 billion.
PFE’s 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 rose 44% operationally to $9.06 billion. The Specialty Care unit recorded sales of $4.29 billion, up 15%. Sales of Oncology rose 31% to $4.04 billion.
PFE Primary Care Sales
In Primary Care, alliance revenues and direct sales from Bristol-Myers (BMY - Free Report) for blood-thinning treatment Eliquis rose 9% to $1.62 billion. Alliance revenues from Bristol-Myers-partnered Eliquis beat the Zacks Consensus Estimate of $1.54 billion as well as our model estimate of $1.53 billion.
Global Prevnar family revenues declined 2% to $1.8 billion. Prevnar revenues were in line with the Zacks Consensus Estimate as well as our model estimate. Prevnar sales rose 1% in the United States but declined 7% in international markets.
Direct sales and alliance revenues from BioNTech for Comirnaty were $1.42 billion in the quarter, up 9% year over year, driven by the favorable timing of stocking in the United States, partially offset by lower demand in international markets. Comirnaty sales beat the Zacks Consensus Estimate of $1.03 billion and our estimate of $1.13 billion.
Paxlovid revenues were $2.7 billion compared with $202 million in the year-ago quarter, driven by strong demand in the United States backed by a recent COVID wave. Also, a one-time contractual delivery to the U.S. Strategic National Stockpile led to sales growth. Paxlovid revenues beat the Zacks Consensus Estimate of $1.3 billion.
The newly acquired product Nurtec ODT/Vydura contributed $337 million in the quarter, which is up 45% year over year.
Among the new products, Pfizer’s RSV vaccine, Abrysvo, recorded sales of $356 million in the third quarter compared with $56 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. Abrysvo revenues beat the Zacks Consensus Estimate of $200 million as well as our model estimate is $280 million.
PFE’s Specialty Care Sales
Global Vyndaqel family revenues of $1.45 billion rose 63% year over year, driven by continued demand growth, primarily in the United States and developed Europe. The 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 $1.41 billion as well as our model estimate of $1.38 billion.
Xeljanz sales declined 35% to $321 million. Sickle cell disease drug Oxbryta generated sales of $17 million in the third quarter of 2024, down 80% year over year. Oxbryta was added with the October 2022 acquisition of Global Blood Therapeutics. In September, Pfizer announced that it is voluntarily withdrawing all lots of Oxbryta from the global markets where it is approved.
PFE’s Oncology Sales
Pfizer’s top-line numbers in the third 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 $268 million, $409 million, $124 million and $34 million, respectively, to Pfizer’s oncology revenues in the third quarter.
In Oncology, Ibrance revenues declined 12% year over year to $1.09 billion. Lower demand trends globally due to competitive pressure and price decreases in some developed international markets hurt sales growth. Ibrance revenues missed the Zacks Consensus Estimate of $1.1 billion and our estimate of $1.13 billion.
Xtandi recorded alliance revenues of $561 million in the quarter, up 28% year over year. Inlyta revenues were $247 million in the quarter, down 1%.
PFE Ups 2024 Sales and EPS Guidance
Pfizer raised its revenue and earnings guidance for 2024.
Adjusted earnings are expected in the range of $2.75 to $2.95 versus the prior expectation of $2.45 to $2.65 per share.
Pfizer expects total revenues to be in the range of $61.0 to $64.0 billion versus the prior expectation of $59.5 billion to $62.5 billion.
The 2024 revenue guidance includes $10.5 billion in potential combined revenues for Paxlovid and Comirnaty, higher than the prior expectation of $8.5 billion due to higher potential revenues from Paxlovid. The $10.5 billion combined guidance comprises $5 billion in sales from Comirnaty and $5.5 billion (previously $3.5 billion) from Paxlovid.
Excluding revenues from Comirnaty and Paxlovid but including revenues from Seagen, Pfizer expects total revenues to increase 9% to 11% on an operational basis. The guidance was maintained despite the potential negative impact of Oxbryta withdrawal.
Research and development expense is expected to be in the range of $11.0 to $12.0 billion in 2024 (maintained). SI&A spending is expected in the range of $13.8 billion to $14.8 billion (maintained). The adjusted tax rate is expected to be approximately 13% in 2024 (maintained).
Our Take on PFE’s Results
Pfizer’s third-quarter results were strong as it beat estimates for earnings as well as sales. Sales of key products like Vyndaqel and Eliquis beat estimates, while Prevnar missed the same. COVID products also contributed to top-line growth in the quarter amid heightened demand for Paxlovid during the recent COVID-19 wave. Seagen drugs contributed $854 million to the top line in the third quarter. Revenues from Pfizer’s non-COVID products rose 14% operationally in the third quarter, following a strong performance in the first half. The company also raised its 2024 earnings and revenue expectations for the second time this year.
Pfizer’s shares were up around 1.5% in pre-market trading.
So far this year, Pfizer’s stock has risen 0.2% compared with an increase of 17.0% for the industry.
Image Source: Zacks Investment Research
After a couple of tough years, Pfizer is gradually making a comeback.
Though demand for its COVID products is declining, Pfizer’s non-COVID operational revenues improved in the first three quarters of 2024, driven by its key in-line products like Vyndaqel and Eliquis, new launches like Abrysvo and newly acquired products, including those acquired from Seagen (December 2023).
Pfizer faces its share of challenges, the key being declining sales of its COVID-19 products. Pfizer also expects a significant impact from the loss of patent exclusivity in the 2026-2030 period, as several of its key products face patent expirations. However, its non-COVID drugs and potential contribution from new and newly acquired products have started to drive growth, with the trend expected to continue.
Also, Pfizer expects cost cuts and internal restructuring, including layoffs, to deliver savings of $4 billion in 2024.
It remains to be seen if the strong third-quarter results and guidance increase can silence activist investor Starboard, which recently called out Pfizer’s board of directors to take action against the latter’s management as Pfizer failed to earn sustainable profitability despite cost cuts, new product launches and acquisitions.
PFE's Zacks Rank & Stock to Consider
Pfizer has a Zacks Rank #3 (Hold) currently.
Pfizer Inc. Price and Consensus
Pfizer Inc. price-consensus-chart | Pfizer Inc. Quote
A large drugmaker worth considering is AstraZeneca (AZN - Free Report) , which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for AstraZeneca’s earnings has risen from $4.05 to $4.07 per share for 2024 over the past 30 days, while that for 2025 has risen from $4.71 per share to $4.72 per share. AstraZeneca’s shares have risen 12.8% year to date.
AstraZeneca beat estimates in three of the last four quarters while missing in one, delivering a four-quarter average earnings surprise of 4.74%.