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Pfizer (PFE - Free Report) reported second-quarter 2024 adjusted earnings per share of 60 cents, which comfortably beat the Zacks Consensus Estimate of 45 cents per share. Earnings declined 11% year over year due to lower revenues.
Revenues came in at $13.28 billion, up 2% from the year-ago quarter on a reported basis, reflecting an operational increase of 3% and a negative currency impact of 1%. Total revenues beat the Zacks Consensus Estimate of $13.13 billion.
Higher sales of Pfizer’s key non-COVID products like Vyndaqel and Eliquis, new product launches and newly acquired products from Seagen offset an expected drop in revenues from its COVID-19 vaccine Comirnaty.
Pfizer's COVID revenues include direct sales and alliance revenues from its partner, BioNTech (BNTX - Free Report) , for Comirnaty, and product revenues from its oral antiviral pill for COVID, Paxlovid.
International revenues declined 15% on an operational basis to $5.39 billion. U.S. revenues rose 22% to $7.89 billion.
Adjusted selling, informational and administrative (SI&A) expenses rose 8% (operationally) in the quarter to $3.67 billion. Adjusted R&D expenses rose 2% to $2.67 billion.
Segment Discussion
Pfizer reports its revenues under three broad sub-segments of its Biopharma operating segment — Primary Care, Specialty Care and Oncology. Sales of the Primary Care segment declined 15% operationally to $4.95 billion. The Specialty Care unit recorded sales of $4.08 billion, up 14%. Sales of Oncology rose 27% to $3.96 billion.
Primary Care
In Primary Care, alliance revenues and direct sales from Bristol-Myers (BMY - Free Report) for blood-thinning treatment Eliquis rose 8% to $1.88 billion. Alliance revenues from Bristol-Myers-partnered Eliquis beat the Zacks Consensus Estimate of $1.86 billion as well as our model estimate of $1.82 billion.
Global Prevnar family revenues declined 4% to $1.36 billion. Prevnar revenues missed the Zacks Consensus Estimate of $1.52 billion as well as our model estimate of $1.56 billion. Prevnar sales declined 4% in the United States and 3% in international markets.
Direct sales and alliance revenues from BioNTech for Comirnaty were $195 million in the quarter, down 87% year over year. Comirnaty sales beat the Zacks Consensus Estimate of $153.0 million and our estimate of $124.9 million.
Paxlovid revenues rose 79% to $251 million as no U.S. sales were recorded in the second quarter of 2023. Also, higher demand due to the rise in infections in some international markets led to sales growth.
Newly acquired product Nurtec ODT/Vydura contributed $356 million in the second quarter, up 44% year over year. Nurtec ODT/Vydura was added to Pfizer’s portfolio with the acquisition of the majority of Biohaven in 2022.
Among the new products, Pfizer’s RSV vaccine, Abrysvo, recorded sales of $56 million in the second quarter compared with $145 million in the previous quarter. Abrysvo was approved to help protect older adults and infants through maternal immunization in the United States as well as the EU in 2023.
Specialty Care
Global Vyndaqel family revenues of $1.32 billion rose 71% year over year, driven by continued demand growth, primarily in the United States and developed Europe. The Vyndaqel family includes global revenues from Vyndaqel as well as revenues for Vyndamax in the United States and Vynmac in Japan. Vyndaqel family sales beat the Zacks Consensus Estimate of $1.08 billion as well as our model estimate of $1.03 billion.
Xeljanz sales declined 34% to $303 million. Enbrel revenues declined 15% to $179 million due to continued biosimilar competition in key European markets and Japan.
New product, Oxbryta, generated sales of $92 million in the second quarter of 2024, up 20% year over year. Oxbryta was added with the October 2022 acquisition of Global Blood Therapeutics.
Oncology
Pfizer’s top-line numbers in the second quarter of 2024 included revenues from the acquisition of Seagen, which closed in mid-December 2023. The acquisition added Seagen’s antibody-drug conjugates or ADCs — Adcetris, Padcev, Tukysa and Tivdak — to Pfizer’s cancer portfolio. Adcetris, Padcev, Tukysa and Tivdak contributed $279 million, $394 million, $121 million and $33 million, respectively, to Pfizer’s oncology revenues in the second quarter.
In Oncology, Ibrance revenues declined 8% year over year to $1.13 billion. Lower demand trends globally due to competitive pressure and price decreases in some developed international markets hurt sales growth. Ibrance revenues slightly beat the Zacks Consensus Estimate of $1.12 billion and our estimate of $1.11 billion.
Xtandi recorded alliance revenues of $495 million in the quarter, up 17% year over year. Inlyta revenues were $252 million in the quarter, down 2%.
2024 Guidance
Pfizer raised its revenue and earnings guidance for 2024.
Adjusted earnings are expected in the range of $2.45 to $2.65 versus the prior expectation of $2.15 to $2.35 per share.
Pfizer expects total revenues to be in the range of $59.5 billion to $62.5 billion versus the prior expectation of $58.5 billion to $61.5 billion.
The 2024 revenue guidance includes $8.5 billion in potential combined revenues for Paxlovid and Comirnaty higher than prior expectation of $8 billion due to higher potential revenues from Paxlovid. The $8.5 billion combined guidance comprises $5 billion in sales from Comirnaty and $3.5 billion (previously $3.0 billion) from Paxlovid.
Excluding revenues from Comirnaty and Paxlovid but including revenues from Seagen, Pfizer expects total revenues to increase 9% to 11% on an operational basis, up from the prior expectation of 8% to 10%.
Research and development expense is expected to be in the range of $11.0 to $12.0 billion in 2024 (maintained). SI&A spending is expected in the range of $13.8 billion to $14.8 billion (maintained). The adjusted tax rate is expected to be approximately 13% in 2024 versus the prior expectation of approximately 15%.
Our Take
Pfizer’s second-quarter results were strong as it beat estimates for earnings as well as sales. This was Pfizer’s first quarter of top-line growth after reporting declines for the past five quarters.
Sales of key products like Vyndaqel and Eliquis beat estimates, while Prevnar missed the same. Seagen drugs contributed $845 million to the top line in the second quarter. Revenues from Pfizer’s non-COVID products rose 14% operationally in the second quarter. The company also raised its 2024 earnings and revenue expectations.
Pfizer’s shares were up around 2% in pre-market trading.
So far this year, Pfizer’s stock has risen 6.7% compared with an increase of 18.4% for the industry.
Image Source: Zacks Investment Research
The last year was a record year for Pfizer in terms of FDA approvals. It received nine new medicine/vaccine approvals.
Pfizer’s key new product approvals/launches include RSV vaccine Abrysvo, Velsipity pill for ulcerative colitis, pentavalent meningococcal vaccine Penbraya, Zavzpret nasal spray for migraine and Beqvez/Durveqtix (fidanacogene elaparvovec) a one-time gene therapy for hemophilia B.
Last month, Pfizer said that it would move forward with the development of a once-daily formulation of danuglipron, its GLP-1 candidate for obesity, based on encouraging results from an ongoing study. This announcement pushed the stock up as it marked Pfizer’s comeback in the lucrative obesity market after facing some setbacks.
Amid a decline in COVID revenues, Pfizer expects better non-COVID operational revenue growth in the future quarters, driven by its key in-line products like Prevnar, Vyndaqel and Eliquis, new launches like Abrysvo, Velsipity, Penbraya, Zavzpret, as well as newly acquired products from Seagen. Also, Pfizer expects cost cuts and internal restructuring, including layoffs, to deliver savings of $4 billion in 2024. Along with the second-quarter results, Pfizer announced the launch of a manufacturing optimization program, which is expected to save $1.5 billion in costs by 2027 end.
Another large drugmaker, Merck (MRK - Free Report) , also reported its second-quarter results today. Merck beat estimates for earnings as well as sales. Earnings of $2.28 per share beat the Zacks Consensus Estimate of $2.16. Revenues of $16.1 billion beat the Zacks Consensus Estimate of $15.9 billion. Blockbuster drug Keytruda continued its growth trajectory and was the key driver of the top line in the quarter. Keytruda sales rose 16% in the quarter.
Sales of the HPV vaccine, Gardasil, rose 1% year over year. Gardasil sales missed estimates while Keytruda beat the same. The company slightly raised its revenue guidance for 2024 from $63.1 billion-$64.3 billion to $63.4 billion-$64.4 billion. Adjusted earnings per share guidance was lowered from the range of $8.53-$8.65 to $7.94-$8.04 due to costs related to recent Harpoon and EyeBio acquisitions. Merck’s stock declined around 4% in pre-market trading on Tuesday.
Image: Bigstock
Pfizer (PFE) Beats on Q2 Earnings & Sales, Raises 2024 View
Pfizer (PFE - Free Report) reported second-quarter 2024 adjusted earnings per share of 60 cents, which comfortably beat the Zacks Consensus Estimate of 45 cents per share. Earnings declined 11% year over year due to lower revenues.
Revenues came in at $13.28 billion, up 2% from the year-ago quarter on a reported basis, reflecting an operational increase of 3% and a negative currency impact of 1%. Total revenues beat the Zacks Consensus Estimate of $13.13 billion.
Higher sales of Pfizer’s key non-COVID products like Vyndaqel and Eliquis, new product launches and newly acquired products from Seagen offset an expected drop in revenues from its COVID-19 vaccine Comirnaty.
Pfizer's COVID revenues include direct sales and alliance revenues from its partner, BioNTech (BNTX - Free Report) , for Comirnaty, and product revenues from its oral antiviral pill for COVID, Paxlovid.
International revenues declined 15% on an operational basis to $5.39 billion. U.S. revenues rose 22% to $7.89 billion.
Adjusted selling, informational and administrative (SI&A) expenses rose 8% (operationally) in the quarter to $3.67 billion. Adjusted R&D expenses rose 2% to $2.67 billion.
Segment Discussion
Pfizer reports its revenues under three broad sub-segments of its Biopharma operating segment — Primary Care, Specialty Care and Oncology. Sales of the Primary Care segment declined 15% operationally to $4.95 billion. The Specialty Care unit recorded sales of $4.08 billion, up 14%. Sales of Oncology rose 27% to $3.96 billion.
Primary Care
In Primary Care, alliance revenues and direct sales from Bristol-Myers (BMY - Free Report) for blood-thinning treatment Eliquis rose 8% to $1.88 billion. Alliance revenues from Bristol-Myers-partnered Eliquis beat the Zacks Consensus Estimate of $1.86 billion as well as our model estimate of $1.82 billion.
Global Prevnar family revenues declined 4% to $1.36 billion. Prevnar revenues missed the Zacks Consensus Estimate of $1.52 billion as well as our model estimate of $1.56 billion. Prevnar sales declined 4% in the United States and 3% in international markets.
Direct sales and alliance revenues from BioNTech for Comirnaty were $195 million in the quarter, down 87% year over year. Comirnaty sales beat the Zacks Consensus Estimate of $153.0 million and our estimate of $124.9 million.
Paxlovid revenues rose 79% to $251 million as no U.S. sales were recorded in the second quarter of 2023. Also, higher demand due to the rise in infections in some international markets led to sales growth.
Newly acquired product Nurtec ODT/Vydura contributed $356 million in the second quarter, up 44% year over year. Nurtec ODT/Vydura was added to Pfizer’s portfolio with the acquisition of the majority of Biohaven in 2022.
Among the new products, Pfizer’s RSV vaccine, Abrysvo, recorded sales of $56 million in the second quarter compared with $145 million in the previous quarter. Abrysvo was approved to help protect older adults and infants through maternal immunization in the United States as well as the EU in 2023.
Specialty Care
Global Vyndaqel family revenues of $1.32 billion rose 71% year over year, driven by continued demand growth, primarily in the United States and developed Europe. The Vyndaqel family includes global revenues from Vyndaqel as well as revenues for Vyndamax in the United States and Vynmac in Japan. Vyndaqel family sales beat the Zacks Consensus Estimate of $1.08 billion as well as our model estimate of $1.03 billion.
Xeljanz sales declined 34% to $303 million. Enbrel revenues declined 15% to $179 million due to continued biosimilar competition in key European markets and Japan.
New product, Oxbryta, generated sales of $92 million in the second quarter of 2024, up 20% year over year. Oxbryta was added with the October 2022 acquisition of Global Blood Therapeutics.
Oncology
Pfizer’s top-line numbers in the second quarter of 2024 included revenues from the acquisition of Seagen, which closed in mid-December 2023. The acquisition added Seagen’s antibody-drug conjugates or ADCs — Adcetris, Padcev, Tukysa and Tivdak — to Pfizer’s cancer portfolio. Adcetris, Padcev, Tukysa and Tivdak contributed $279 million, $394 million, $121 million and $33 million, respectively, to Pfizer’s oncology revenues in the second quarter.
In Oncology, Ibrance revenues declined 8% year over year to $1.13 billion. Lower demand trends globally due to competitive pressure and price decreases in some developed international markets hurt sales growth. Ibrance revenues slightly beat the Zacks Consensus Estimate of $1.12 billion and our estimate of $1.11 billion.
Xtandi recorded alliance revenues of $495 million in the quarter, up 17% year over year. Inlyta revenues were $252 million in the quarter, down 2%.
2024 Guidance
Pfizer raised its revenue and earnings guidance for 2024.
Adjusted earnings are expected in the range of $2.45 to $2.65 versus the prior expectation of $2.15 to $2.35 per share.
Pfizer expects total revenues to be in the range of $59.5 billion to $62.5 billion versus the prior expectation of $58.5 billion to $61.5 billion.
The 2024 revenue guidance includes $8.5 billion in potential combined revenues for Paxlovid and Comirnaty higher than prior expectation of $8 billion due to higher potential revenues from Paxlovid. The $8.5 billion combined guidance comprises $5 billion in sales from Comirnaty and $3.5 billion (previously $3.0 billion) from Paxlovid.
Excluding revenues from Comirnaty and Paxlovid but including revenues from Seagen, Pfizer expects total revenues to increase 9% to 11% on an operational basis, up from the prior expectation of 8% to 10%.
Research and development expense is expected to be in the range of $11.0 to $12.0 billion in 2024 (maintained). SI&A spending is expected in the range of $13.8 billion to $14.8 billion (maintained). The adjusted tax rate is expected to be approximately 13% in 2024 versus the prior expectation of approximately 15%.
Our Take
Pfizer’s second-quarter results were strong as it beat estimates for earnings as well as sales. This was Pfizer’s first quarter of top-line growth after reporting declines for the past five quarters.
Sales of key products like Vyndaqel and Eliquis beat estimates, while Prevnar missed the same. Seagen drugs contributed $845 million to the top line in the second quarter. Revenues from Pfizer’s non-COVID products rose 14% operationally in the second quarter. The company also raised its 2024 earnings and revenue expectations.
Pfizer’s shares were up around 2% in pre-market trading.
So far this year, Pfizer’s stock has risen 6.7% compared with an increase of 18.4% for the industry.
Image Source: Zacks Investment Research
The last year was a record year for Pfizer in terms of FDA approvals. It received nine new medicine/vaccine approvals.
Pfizer’s key new product approvals/launches include RSV vaccine Abrysvo, Velsipity pill for ulcerative colitis, pentavalent meningococcal vaccine Penbraya, Zavzpret nasal spray for migraine and Beqvez/Durveqtix (fidanacogene elaparvovec) a one-time gene therapy for hemophilia B.
Last month, Pfizer said that it would move forward with the development of a once-daily formulation of danuglipron, its GLP-1 candidate for obesity, based on encouraging results from an ongoing study. This announcement pushed the stock up as it marked Pfizer’s comeback in the lucrative obesity market after facing some setbacks.
Amid a decline in COVID revenues, Pfizer expects better non-COVID operational revenue growth in the future quarters, driven by its key in-line products like Prevnar, Vyndaqel and Eliquis, new launches like Abrysvo, Velsipity, Penbraya, Zavzpret, as well as newly acquired products from Seagen. Also, Pfizer expects cost cuts and internal restructuring, including layoffs, to deliver savings of $4 billion in 2024. Along with the second-quarter results, Pfizer announced the launch of a manufacturing optimization program, which is expected to save $1.5 billion in costs by 2027 end.
Another large drugmaker, Merck (MRK - Free Report) , also reported its second-quarter results today. Merck beat estimates for earnings as well as sales. Earnings of $2.28 per share beat the Zacks Consensus Estimate of $2.16. Revenues of $16.1 billion beat the Zacks Consensus Estimate of $15.9 billion. Blockbuster drug Keytruda continued its growth trajectory and was the key driver of the top line in the quarter. Keytruda sales rose 16% in the quarter.
Sales of the HPV vaccine, Gardasil, rose 1% year over year. Gardasil sales missed estimates while Keytruda beat the same. The company slightly raised its revenue guidance for 2024 from $63.1 billion-$64.3 billion to $63.4 billion-$64.4 billion. Adjusted earnings per share guidance was lowered from the range of $8.53-$8.65 to $7.94-$8.04 due to costs related to recent Harpoon and EyeBio acquisitions. Merck’s stock declined around 4% in pre-market trading on Tuesday.
Zacks Rank
Pfizer has a Zacks Rank #3 (Hold) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pfizer Inc. Price and Consensus
Pfizer Inc. price-consensus-chart | Pfizer Inc. Quote