Pfizer's Q2 revenue misses forecasts as COVID product sales recede
01 Aug 2023
Phase 1VaccineFinancial StatementAcquisitionClinical Result
Headline results for the second quarter:
Revenue: $12.7 billion (forecasts of $13.3 billion), down 54%
Profit: $2.3 billion, down 77%
Note: All changes are versus the prior-year period unless otherwise stated
What the company said:
Chief financial officer David Denton remarked "the second quarter…delivered solid 5% operational revenue growth, excluding our COVID-19 products, and our year-to-date results are in line with our expectations." However, Denton said that despite expected accelerated growth of non-COVID products in the second half, the company may have to launch a cost-cutting programme if sales of Comirnaty and Paxlovid continue to underperform.
According to Pfizer, it anticipates more clarity for COVID revenue in the second half on a likely rise in infections in the fall season and the US switching to a commercial market for the products from government contracts. "To that end, if our COVID-19 revenues are less than what we assumed, we are prepared to launch an enterprise-wide cost improvement programme," Denton explained.
Meanwhile, CEO Albert Bourla noted that Pfizer continues "to make progress toward" closing the proposed $43-billion acquisition of Seagen later this year or in early 2024. The executive added that the drugmaker is working to fulfil requests for further information on the transaction from the US Federal Trade Commission.
Other results:
Primary care sales: $5.8 billion, down 72%
Eliquis alliance revenue and direct sales: $1.8 billion, up 1%
Comirnaty: $1.5 billion, down 83%, but ahead of forecasts of $1.4 billion
Prevnar/Prevenar 13 & 20: $1.4 billion, down 3%
Nurtec ODT/Vydura: $247 million
Paxlovid: $143 million, down 98%, missing estimates of nearly $1.1 billion
Specialty care sales: $3.7 billion, up 9%
Xeljanz: $469 million, up 9%
Enbrel (outside the US and Canada): $219 million, down 15%
Sulperazon: $177 million, down 15%
Oxbryta: $77 million
Oncology product sales: $3 billion, down 4%
Ibrance: $1.2 billion, down 6%
Xtandi alliance revenue: $305 million, up 5%
Inlyta: $262 million, down 4%
Looking ahead:
Pfizer now expects revenue for 2023 to be between $67 billion and $70 billion, with the top end lowered by $1 billion from prior guidance. The company reaffirmed that revenue from Comirnaty is seen reaching approximately $13.5 billion, down 64% from 2022, while Paxlovid sales are set to fall 58% to around $8 billion.
Meanwhile, Pfizer reiterated that earnings per share for this year are still predicted to be between $3.25 and $3.45, which represents roughly a 50% drop from 2022.
Commenting on the recent tornado damage to its manufacturing plant in Rocky Mount, North Carolina, the company said "there does not appear to be major damage to the production areas," with the majority of issues restricted to the warehouse facility. Pfizer indicated that it is working to move finished medicines – which include sterile injectables – to other nearby sites for storage, while it is also exploring alternative manufacturing locations.
Pipeline updates:
Pfizer disclosed a number of recently-discontinued programmes, led by the mid-stage vaccine PF-06842433 for invasive and non-invasive Pneumococcal infections in infants and children. The cull comprises six Phase I assets, including the topical soft JAK inhibitorJAK inhibitor PF-07295324 and the CD1a inhibitor PF-07242813, which were both under development for atopic dermatitis.
Also on the chopping block were the AXL/MERTK inhibitorAXL/MERTK inhibitor PF-07265807 and the IL-15 activator PF-07209960 in oncology, as well as the anti-E-selectin inhibitor PF-07209326 in sickle cell disease and the N-protein inhibitor PF-07923567/RV-299 for respiratory syncytial virus infection.
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