Pfizer lifts full-year profit forecast after earnings top estimates

Pfizer said it still expects $8bn in combined sales of its covid products, the vaccine Comirnaty it shares with BionTech and oral antiviral Paxlovid. File picture: Dan Linehan

Pfizer — the drug giant that employs almost 5,000 people at sites in Kildare, Cork, and Dublin — lifted its annual profit forecast and posted first-quarter results that topped analysts' estimates. 

It comes as the company cut costs and posted a smaller-than-feared drop in sales of its covid treatment and strong sales of its pneumonia vaccine.

Sales of cancer treatment Padcev, which Pfizer gained through its $43bn deal for Seagen, also came in ahead of analysts' expectations. The Seagen deal, as well as its $4bn cost-cutting plan, are a key part of Pfizer's post-covid growth strategy. 

Investors have also been tracking the performance of the company's new RSV vaccine, which has been trailing a rival shot from GSK since they both launched.

The company raised both ends of its 2024 profit forecast range: Shares of the New York-based drug maker, which have lost 11% of their value this year, rose about 1% on Wednesday. 

Seagen's targeted cancer therapies Padcev and Adcetris brought in combined sales of $598m in the quarter for Pfizer, however, Adcetris sales fell short of analysts' expectations.

"We believe stronger new launch performance and further progress on the pipeline will be necessary to change the current narrative on the stock," said JP Morgan analyst Chris Schott.

Pfizer said it still expects $8bn in combined sales of its covid products, the vaccine Comirnaty it shares with BionTech and oral antiviral Paxlovid. Paxlovid sales dropped 50% to $2bn for the quarter, still well above analysts' forecasts. 

Pfizer last year renegotiated a US contract, allowing the government to return unused Paxlovid stocks. Sales of the covid vaccine fell 88% to $354m. 

Prevnar pneumonia vaccines brought in sales of $1.69bn and sales of Pfizer's closely watched Abrysvo vaccine for protection against respiratory syncytial virus (RSV) were just $145m. 

Reuters