Pfizer Raises Sales Outlook After Strong Quarter
GENEVA-Pfizer reported better-than-expected second-quarter earnings on Tuesday, driven by robust sales of its blood thinner Eliquis, while announcing plans for an additional $2.5 billion in cost reductions as the U.S. drugmaker works to offset declining COVID-related revenue and position itself for long-term growth.
The company said the new savings initiative, scheduled to be implemented between 2027 and 2029, will build on its existing restructuring efforts aimed at improving efficiency and supporting sustainable growth as demand for its pandemic-related products continues to weaken.
Pfizer is also relying on recently launched and acquired medicines to reduce its dependence on aging blockbuster drugs. Investors are closely monitoring whether the company’s $10 billion acquisition of Metsera will establish a meaningful presence in the rapidly expanding obesity treatment market.
The company has previously said it expects to return to stronger growth after 2028.
Chief Executive Officer Albert Bourla said newly launched and acquired products delivered solid performance during the quarter and added that the company’s obesity program was advancing with significant momentum.
Revenue from acquired products increased 25% on an operational basis during the quarter, reflecting continued contributions from Pfizer’s recent acquisitions.
Sales of Eliquis, which Pfizer markets in partnership with Bristol Myers Squibb, rose 19% on an operational basis, supported by stronger global demand, improved U.S. net pricing resulting from lower rebates, and a favorable distribution channel mix.
Quarterly Eliquis revenue reached $2.43 billion, exceeding analysts’ average estimate of $1.93 billion, according to data compiled by LSEG.
Higher revenue from Eliquis and the cancer therapy Padcev helped compensate for weaker demand across Pfizer’s portfolio of COVID-related products.
Reflecting the stronger quarterly performance, Pfizer raised the lower end of its full-year revenue forecast. The company now expects annual revenue of between $60.5 billion and $62.5 billion, compared with its previous guidance of $59.5 billion to $62.5 billion.
Pfizer maintained its annual adjusted profit forecast, incorporating a previously disclosed $650 million impact related to a licensing agreement valued at up to $10.5 billion with China’s Innovent Biologics.
On an adjusted basis, the company reported earnings of 77 cents per share for the quarter, surpassing analysts’ consensus estimate of 68 cents per share, according to LSEG.
Pfizer shares were little changed in premarket trading following the earnings announcement, as investors weighed the stronger financial performance against the company’s longer-term strategy to restore sustained growth through cost reductions, new product launches and expansion into the obesity treatment market.
