Biotech
Tuesday, October 31st, 2023 1:53 pm EDT
Key Points
- Financial Performance: Pfizer reported a narrower-than-expected adjusted loss for the third quarter. The company recorded a $5.6 billion charge for inventory write-offs due to lower-than-expected demand for its Covid products, with $4.7 billion attributed to Paxlovid and $900 million to the Covid vaccine. Pfizer’s third-quarter revenue was $13.23 billion, a 42% decline from the same period a year ago, primarily due to decreased Covid product sales.
- Covid Product Challenges: Pfizer’s Covid vaccine sales were down 70% from the previous year, and Paxlovid revenue dropped 97%. The company anticipates $11.5 billion in Covid vaccine sales for the year and $1 billion in revenue from Paxlovid. To address the decline in demand, Pfizer announced a $3.5 billion cost-cutting plan.
- Non-Covid Business Growth: Excluding Covid products, Pfizer reported a 10% operational revenue growth in the third quarter. This growth was driven by new vaccines, recently acquired drugs, and strong sales of non-Covid products such as Vyndaqel drugs and shots to protect against pneumococcal pneumonia. Pfizer is looking to shift investor focus away from Covid toward its growth opportunities, including mergers and acquisitions and its drug pipeline. Investors are also awaiting updates on Pfizer’s oral obesity pill and its $43 billion acquisition of cancer therapy maker Seagen.
Pfizer has reported a narrower-than-expected adjusted loss for the third quarter, but it faces challenges related to its Covid antiviral treatment Paxlovid and the Covid vaccine. The company recorded a $5.6 billion charge for inventory write-offs in the third quarter due to lower-than-expected use of Covid products, with $4.7 billion attributed to Paxlovid and $900 million to the vaccine.
Pfizer’s Covid-related revenue has significantly declined, with the Covid vaccine sales down 70% from the year-ago quarter and Paxlovid revenue dropping 97%. The company anticipates its Covid vaccine will generate $11.5 billion in sales this year, and it expects $1 billion in revenue from Paxlovid.
While Pfizer faces challenges in its Covid-related business, it reported operational revenue growth of 10% in non-Covid products, with new vaccines and recently acquired drugs contributing to revenue. The company aims to shift investor focus away from Covid toward growth opportunities, including mergers and acquisitions and a robust pipeline.
Investors are also looking for updates on Pfizer’s midstage trial for an oral obesity pill and its $43 billion acquisition of cancer therapy maker Seagen. Despite challenges in its Covid business, Pfizer is working to diversify and solidify its position in various healthcare markets.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/31/pfizer-pfe-q3-earnings-report-2023.html
