Pfizer, the renowned pharmaceutical company, announced its second-quarter earnings which surpassed expectations from Wall Street analysts. However, the company fell short in terms of revenue due to a significant drop in sales of Covid-related products. In comparison to the same quarter last year, Pfizer reported a decline of 54% in sales, amounting to $12.73 billion.
The decline can be attributed to a decrease in demand for Covid vaccines, which brought in $1.49 billion, marking an 83% decrease from the previous year. Additionally, Pfizer’s Covid antiviral pill, Paxlovid, generated $143 million in revenue, a staggering 98% decrease from the second quarter of 2022. Together, these products contributed $1.6 billion in revenue for the quarter, a significant decline from the approximately $17 billion generated during the same period last year.
This decline was anticipated, as Pfizer and other pharmaceutical companies like Moderna witnessed a sharp decrease in Covid-related sales as the world gradually recovered from the pandemic and relied less on vaccines and treatments. Despite the fall in revenue, Pfizer’s adjusted earnings per share for the quarter stood at 67 cents, surpassing the expected 57 cents per share.
Pfizer’s net income for the quarter was $2.33 billion, or 41 cents per share, a decline from $9.91 billion, or $1.73 per share, in the same period last year. Looking ahead, the company adjusted its sales forecast for 2023 to be in the range of $67 billion to $70 billion, narrowing it from the previous range of $67 billion to $71 billion. The full-year adjusted earnings outlook remains unchanged at $3.25 to $3.45 per share.
While Pfizer expects a decline in Covid-related sales for the year, it reaffirmed its projections of $13.5 billion in Covid vaccine sales and $8 billion in revenue for Paxlovid. The guidance for these products is based on existing supply contracts with governments and sales from the commercial market. Additionally, Pfizer plans to start selling Covid-related products directly to healthcare providers this fall.
Alongside the decline in Covid sales, Pfizer experienced growth in revenue from other drug products. Sales from recently acquired companies, including Nurtec ODT and Oxbryta, contributed significantly. Furthermore, Vyndaqel drugs, used to treat cardiomyopathy, saw a 42% increase in sales compared to the second quarter of 2022, generating $782 million.
However, certain drugs, such as Inflectra and Ibrance, experienced a decline in sales. Pfizer’s executives are expected to provide updates on various near-term drug launches, including a vaccine for respiratory syncytial virus and an updated Covid shot. These launches are anticipated to contribute to the growth of non-Covid revenues in the second half of the year.
Furthermore, Pfizer’s $43 billion acquisition of Seagen, a cancer therapy maker, holds promising prospects for the company. Pfizer believes this deal could generate more than $10 billion in sales by 2030, although the U.S. Federal Trade Commission has asked for more information regarding the merger.
Executives will also address the recent tornado that affected Pfizer’s major plant in North Carolina, which may lead to disruptions in the supply of certain drugs. Investors will eagerly await the company’s conference call scheduled for 10 a.m. ET on Tuesday to gain further insights into Pfizer’s performance and future plans. Despite challenges, Pfizer remains focused on growth by leveraging mergers and acquisitions and its robust pipeline to venture into new areas of expansion.
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