Pfizer ups profit view on smaller drop in Paxlovid demand, leaner operations

01 May 2024
firstwordpharma.com
VaccineAcquisitionPhase 2Phase 1Gene Therapy
Pfizer reported better-than-expected first-quarter revenue and raised its full-year profit outlook on Wednesday, benefiting from its broad cost-cutting programme, a smaller-than-feared drop in sales of its oral COVID-19 antiviral Paxlovid, and strong performance from some of its other products.
The pharma now expects to book adjusted earnings of $2.15 to $2.35 per share for the year, up from its prior guidance of $2.05 to $2.25 per share. Pfizer also reiterated its previous revenue forecast of $58.5 billion to $61.5 billion.
Paxlovid softens post-pandemic blow
Its COVID-19 products, the vaccine Comirnaty it shares with BioNTech and oral antiviral Paxlovid, saw significant sales decreases as demand has sunk to new lows. However, the declines were less severe than anticipated.
Paxlovid booked $2 billion in sales for the quarter, down 50% from the same period a year ago, yet coming in well above the $762.5 million analysts were expecting. The company recorded a $771-million favourable adjustment due to the return of unused Paxlovid treatment courses by the US government. Meanwhile, Comirnaty generated $354 million, down 88% from the year-earlier period and falling short of projections of $496.5 million.
Oncology boost from Seagen
Excluding COVID-19 products, Pfizer said revenue for the first quarter rose 11%. Growth was partly fueled by the company's $43-billion acquisition of Seagen, whose legacy products including the targeted cancer therapies Padcev and Adcetris contributed a combined $742 million in quarterly revenue. However, Adcetris sales still fell short of analyst expectations.
Other non-COVID-19 products that helped spur sales growth included the blood thinner Eliquis (+9% to $2 billion), the Vyndaqel family of cardiomyopathy drugs (+66% to $1.1 billion), and the Prevnar pneumococcal vaccine franchise (+6 to $1.7 billion).
However, Pfizer's new RSV vaccine Abrysvo saw just $145 million in sales, far short of analysts' estimate of $360 million, while the breast cancer drug Ibrance posted an 8% decline in revenue to $1.1 billion.
Cost cuts fuel outlook raise
"We believe stronger new launch performance and further progress on the pipeline will be necessary to change the current narrative on the stock," commented JP Morgan analyst Chris Schott.
Pfizer said its updated profit guidance "takes into consideration our confidence in delivering on our cost realignment programme target," adding it is on track to deliver at least $4 billion in savings by the end of the year.
First-quarter sales totaled $14.9 billion overall, which was 20% lower than the same period a year ago, while net income was down 44% at $3.1 billion.
Pipeline cuts
Meanwhile, the drugmaker also culled some programmes from its pipeline, including discontinuing development of VTX-801, a gene therapy candidate partnered with Vivet Therapeutics that was in Phase I for Wilson's disease. In addition, it scrapped potential new indications for its S1P inhibitor Velsipity (etrasimod) in atopic dermatitis and alopecia areata, as well as a migraine prevention programme for its oral CGRP receptor antagonist Zavzpret (zavegepant), all of which had reached Phase II testing.
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