Pfizer ups full-year earnings outlook

(Sharecast News) - Pfizer raised its full-year earnings forecast on Wednesday, on the back of solid demand for its non-Covid products. The US drugs giant, which saw sales and profits rocket during the pandemic due to strong demand for its Covid-19 vaccine Comirnaty, said revenues fell 20% in the first quarter to $14.9bn.

First-quarter sales from Comirnaty fell 88% to $354m, as demand for the vaccine continued to wane, below expectations for around $496m.

However, Pfizer insisted the decline was in line with internal expectations. It also noted that around 90% of vaccine sales are expected to occur in the second half, mainly in the fourth quarter.

Sales of Covid antiviral treatment Paxlovid also beat expectations, falling 50% to $2bn.

Once contributions from Comirnaty and Paxlovid were stripped out, revenues rose 11% operationally.

Reported net income tumbled 44% to $3.1bn, while adjusted diluted earnings per share fell 33% to $0.82.

But David Denton, chief financial officer, said: "I am very pleased by the strong 11% operational revenue growth of our non-Covid products in the first quarter, demonstrating our focus on commercial execution.

"In addition, we continue to progress our cost-realignment programme and remain on track to deliver on our targeted cost savings goal by the end of the year."

Pfizer therefore lifted its forecast for adjusted diluted EPS for the full-year to between $2.15 and $2.35, up from between $2.05 and $2.25 previously.

All other forecasts were left unchanged, including plans to deliver "at least" $4bn in net cost savings by the year end.

Albert Bourla, chief executive, said: "We delivered strong performance in our non-Covid product portfolio in the first quarter, including increased revenue from several of our recent commercial launches and acquired products, as well as robust growth for several key in-line brands.

"Overall I am encouraged by the well-executed quarter, setting the tone for the year."