Pfizer Misses Expectations but Bets on New Drug Launches to Ease Shortfall

Pfizer reported second-quarter earnings Tuesday that fell short of analysts’ estimates as record sales from its Covid-19 products dry up. 

Pfizer says its strategy of relying on internal innovation is bearing fruit, with a series of new drug approvals coming in the second quarter and drugs from recent deals helping drive revenue. 

The company has been looking to ramp up areas for growth as record sales from its Covid-19 products soften. Excluding the Covid-19 vaccine and treatment Paxlovid, Pfizer sales grew about 5%, by $537 million. The growth was partly driven by products recently acquired through deals, including migraine treatment Nurtec and sickle-cell disease drug Oxbryta, Pfizer said. 

Chief Executive Albert Bourla said he expects demand for Pfizer’s Covid-19 products to be less uncertain once they are sold commercially instead of through government contracts. Pfizer expects to roll out its Covid-19 shot to the commercial market in September, assuming the latest version targeting newer strains are cleared by regulators and available by the end of August, Bourla said in prepared remarks.

How is Pfizer’s profit?

• The company’s second-quarter net earnings fell roughly three-quarters to $2.3 billion, or 41 cents a share.

• Excluding certain items such as litigation, second-quarter earnings were 67 cents a share, compared with 57 cents a share forecast by analysts.

• Pfizer’s second-quarter sales fell 54% to $12.7 billion, compared with the consensus estimate of $13.3 billion among analysts surveyed by FactSet. An expected drop in sales from its Covid-19 vaccine and treatment drove the decline in sales. 

• The company narrowed its sales forecast for full-year 2023, predicting $67 billion to $70 billion, down from $67 billion to $71 billion previously. 

New drug launches

• During the quarter, U.S. regulators approved Abrysvo, Pfizer’s new vaccine for older adults for respiratory syncytial virus; Litfulo, a treatment for the hair loss condition alopecia areata; and Ngenla, a growth hormone treatment for children. 

• More approvals are expected later this year, helping contribute to Pfizer’s goal of rolling out 19 new products or label indications within 18 months, Bourla said. 

• The new drugs and approvals could soften the impact in 2030 when Pfizer is due to lose $17 billion in sales from patent expirations. The company has also been working toward a goal of adding $25 billion in revenue by the end of the decade from business development moves such as deal making. 

• Pfizer’s proposed $43 billion acquisition of Seagen is expected to close in late 2023 or early 2024, Pfizer said Tuesday. If approved, the deal will contribute $10 billion in 2030 revenues, the company said. 

• Pfizer is expecting its Covid-19 vaccine to generate $13.5 billion this year, down roughly two-thirds from last year. The company expects Paxlovid to bring in about $8 billion in sales this year, down 58% from last year.

Write to Jared S. Hopkins at [email protected]