Pfizer Reports 44% Drop in Q1 Profits Amid Declining Covid-19 Product Sales

Pfizer Inc. reported a 44% decrease in its first-quarter profits due to lower sales of its Covid-19 vaccine and therapeutics, despite an 11% growth in non-Covid products. The company's earnings came in at $3.12 billion, or $0.55 per share, compared to $5.54 billion, or $0.97 per share, in the same period last year. Excluding items, Pfizer reported adjusted earnings of $4.67 billion or $0.82 per share, beating the average analyst estimate of $0.52 per share.

The company's revenue for the quarter declined 19.5% to $14.88 billion from $18.49 billion last year. Pfizer attributed the decline to lower Covid-19 vaccine and therapeutic sales, but noted an 11% growth in non-Covid products. Sales of the company's Covid-19 treatment Paxlovid saw a 50% drop to $2 billion in the first quarter, while revenue from the Comirnaty vaccine declined 88%.

Why this matters: Pfizer's quarterly results highlight the shifting landscape of the Covid-19 pandemic and its impact on the pharmaceutical industry. As demand for Covid-19 vaccines and treatments wanes, companies like Pfizer are focusing on diversifying their product portfolios and investing in research and development to drive future growth.

To address the drop in profits, Pfizer is investing in R&D and implementing a $4 billion cost-cutting program by the end of 2024. The company has also made strategic moves, such as the $43 billion acquisition of cancer drugmaker Seagen, as part of its internal restructuring efforts. Despite the challenges posed by declining Covid-19 product sales, Pfizer increased its adjusted earnings guidance for fiscal 2024 to a range of $2.15 to $2.35 per share, up from the prior guidance of $2.05 to $2.25 per share.

Pfizer CEO Albert Bourla expressed satisfaction with the quarter's performance, highlighting the strength of the non-Covid portfolio and robust revenue contributions from key oncology products. "Our first-quarter 2024 results reflect the anticipated unfavorable impact of the year-over-year decline in Covid-19-related revenues, while demonstrating strong operational growth from our non-Covid portfolio," Bourla said in a statement.

Key Takeaways

• Pfizer's Q1 profits fell 44% due to lower Covid-19 vaccine and treatment sales.
• Revenue declined 19.5% to $14.88 billion, but non-Covid product sales grew 11%.
• Pfizer is investing in R&D and implementing a $4B cost-cutting program by 2024.
• Pfizer increased its FY2024 adjusted earnings guidance to $2.15-$2.35 per share.
• CEO Bourla highlighted strong growth in Pfizer's non-Covid portfolio amid declining Covid revenues.