Pfizer Reports Better-Than-Expected Third Quarter Results

Pfizer has reported better-than-expected results for its third quarter, fueling an upward revision of its full-year outlook as demand for newer products surges.

The pharmaceutical giant announced on Tuesday that it is now anticipating revenue to reach between $62 billion and $64 billion in 2025, a slight increase from its previous forecast of $60.5 billion to $62.5 billion. This revised projection suggests a relatively flat or slightly lower performance compared to last year's revenue of $62.6 billion.

Cecile Guegan has taken on the role of chief financial officer at Pfizer, a position she assumed this month after serving as interim CFO since August. Her appointment comes following the departure of former CFO Dave Denton, who left the company to become CFO at Nike in August.

The company's strong performance so far this year is cited as one factor behind its revised forecast, which also takes into account a $650 million charge recorded in the third quarter related to a licensing agreement with Chinese cancer drugmaker Innovent Biologics.

Pfizer is pushing forward with a strategy to revitalize growth after experiencing a decline in demand for its Covid-related products. As generic versions of these products gain traction, the company aims to compensate through strategic acquisitions and new drug developments.

A key aspect of this plan involves investing in fresh cancer treatments and weight loss medications, following Pfizer's acquisition of Metsera earlier on. This move is part of a broader effort by CEO Albert Bourla to diversify the company's product portfolio and drive growth.

To mitigate the impact of declining Covid sales, Pfizer has expanded its cost-cutting initiatives launched in August. The goal is to achieve around $9.7 billion in net savings through 2029.

Pfizer's third-quarter revenue came in at $16.58 billion, relatively flat from the same period last year. The company cited a decrease of $57 million due to lower Covid revenues and a negative impact of $15 million from foreign exchange.

Pfizer's newer products have been performing exceptionally well, with sales growing by a significant 32% operationally in the latest quarter. This growth is attributed to several newly launched and acquired products, including Padcev, Abrysvo, Prevnar 20, and Lorbrena.

The respiratory syncytial virus vaccine, Abrysvo, has been contributing significantly to Pfizer's revenue growth, along with other recently introduced products such as the pneumococcal shot, Prevnar 20. These products have seen a notable increase in sales, with Abrysvo being one of the standout performers.

In addition to its newer products, Pfizer's Covid vaccines and treatments are also faring well, despite experiencing steep declines in sales. The company's vaccine generated $808 million in sales, exceeding analyst estimates of $770.4 million, while its antiviral pill, Paxlovid, brought in $449 million, surpassing expectations of $394.1 million.

The strong performance of Pfizer's products has led to a net income of $3.24 billion for the quarter, or 56 cents per share. Excluding certain items such as restructuring charges and costs associated with intangible assets, the company posted earnings per share of 87 cents for the period.