Pfizer CEO Albert Bourla spoke at a press conference with European Commission President Ursula von der Leyen after visiting the production of the Pfizer-BioNtech COVID-19 vaccine at the Pfizer factory in Puurs, Belgium on April 23, 2021. John Thys | ReutersPfizer surprised investors with better-than-expected adjusted fourth-quarter profits, attributed to the stronger performance of its declining Covid business. The company reversed around $3.5 billion in revenue linked to the anticipated return of 6.5 million doses of its Covid drug, Paxlovid, from the U.S. government, which was less than the $4.2 billion initially anticipated. Despite its Covid vaccine revenue decreasing by 53% from the same period the year before, it still raked in $5.36 billion, surpassing analysts’ expectations of $4.99 billion. Pfizer is aiming to offset the rapid decline of its Covid business by implementing a broad $4 billion cost-cutting plan to improve its financial position and reassure investors. The company reported fourth-quarter earnings of 10 cents per share, higher than the anticipated loss of 22 cents and revenue of $14.25 billion, slightly lower than the expected $14.42 billion.The pharmaceutical giant also reaffirmed its full-year 2024 forecast, predicting revenue between $58.5 billion and $61.5 billion, which includes approximately $8 billion from its Covid products and contributions from its recently closed acquisition of cancer drug developer Seagen. Pfizer expects adjusted earnings of $2.05 to $2.25 per share.Pfizer experienced a 41% decrease in revenue compared to the same period a year ago due to the sharp decline in Covid product sales, resulting in a net loss of $3.37 billion or 60 cents per share for the fourth quarter. Excluding certain items, the company reported earnings per share of 10 cents for the quarter.Excluding Covid products, Pfizer reported an 8% operational revenue growth for the quarter. The growth was driven by the introduction of its new vaccine against respiratory syncytial virus, Abrysvo, which generated $515 million in sales for the fourth quarter. Revenue also received a boost from strong sales of Vyndaqel drugs, used to treat a specific type of cardiomyopathy, which saw sales of $961 million, a 41% increase from the fourth quarter of 2022. Pfizer also attributed growth to its blood thinner Eliquis, co-marketed by Bristol Myers Squibb, which recorded $1.61 billion in revenue, a 9% increase from the same period the previous year.Following a year of challenges, including a significant drop in demand for its Covid products, Pfizer’s stock fell approximately 40% in 2023. In an effort to regain investor confidence, the company finalized a $34 billion acquisition of Seagen during the fourth quarter and disclosed plans to establish a new oncology division that includes Seagen in early 2024.Pfizer is facing skepticism from investors about its ability to turn things around and its stock is down over 4% for the year, resulting in a market value of approximately $155 billion. Pfizer will host an earnings call with investors at 10 a.m. ET on Tuesday.
