Pfizer Exceeds Q1 Forecast, Cuts Four Programs Despite 20% Revenue Drop

Pfizer reported its first-quarter 2024 earnings on Wednesday, revealing a 20% year-over-year revenue decline due to reduced demand for its COVID-19 products. Despite this downturn, the company’s quarterly revenue of $14.88 billion exceeded analysts’ expectations, which were projected around $14 billion. Net income for the quarter was $3.12 billion or $0.55 per share, a significant drop from the previous year’s $5.54 billion or $0.97 per share.

The robust performance of Pfizer’s product portfolio, excluding its COVID-19 products, played a crucial role in surpassing analyst forecasts. According to the company, revenue from non-COVID-19 products would have increased by 11%.

Looking ahead, Pfizer has adjusted its profit guidance for the rest of 2024, now anticipating earnings per share of $2.15 to $2.35, up from the earlier estimate of $2.05 to $2.25. The company also revised its full-year revenue forecast to a range of $58.5 billion to $61.5 billion.

One of the standout performers in Pfizer’s portfolio was Eliquis (apixaban), an anticoagulant developed in partnership with Bristol-Myers Squibb, which generated $2.04 billion in Q1 2024, marking a 10% increase year-over-year. The recent $43 billion acquisition of Seagen, completed in December 2023, significantly boosted Pfizer's financials, contributing $742 million in global legacy revenue during the quarter.

The Vyndaqel (tafamidis meglumine) family of products, which includes Vyndamax (tafamidis) and Vynmac (tafamidis) for cardiomyopathy, also showed strong performance, with global revenues increasing by 66% to nearly $1.14 billion. Meanwhile, Pfizer's oncology segment, led by the breast cancer treatment Ibrance (palbociclib), experienced a 7% sales decline but still generated over $1.05 billion in the quarter.

Despite a 50% year-over-year drop in sales, Pfizer’s COVID-19 pill Paxlovid (nirmatrelvir/ritonavir) earned nearly $2.04 billion in Q1, indicating a successful commercial transition in the United States. The company’s COVID-19 mRNA vaccine Comirnaty brought in $354 million during the quarter, an 88% decrease.

Pfizer’s CEO, Albert Bourla, expressed optimism about the overall Q1 results, describing the quarter as well-executed and noting that the company managed to mitigate the impact of declining COVID-19 earnings. Bourla stated, "We intend to build on this positive momentum in the quarters ahead."

In an effort to ensure sustainable growth, Pfizer announced the termination of four pipeline programs. The company discontinued the development of VTX-801, a recombinant gene therapy for Wilson disease, and Zavzpret (zavegepant), an oral preventative treatment for migraines. Additionally, Pfizer halted two Phase II studies for the S1P blocker Velsipity (etrasimod), which were being conducted for atopic dermatitis and alopecia areata.