Pfizer beats sales estimates on better-than-expected demand for Covid treatments

Reduced demand for Covid-19 vaccinations and medication saw revenue fall at Pfizer in the three months to the end of September. However, the US drug giant’s Covid therapies still performed ahead of market expectations.

Pfizer reported a 2 per cent dip in sales to $22.6 billion (€22.7 billion) compared to the year-ago quarter, but ahead of average analyst expectations for sales of $21.04 billion. Stripping out the Covid therapies, sales were 2 per cent ahead of the prior year numbers.

However, Pfizer has raised its forecast for annual sales of its Covid-19 vaccine by $2 billion to $34 billion on the back of demand for Omicron-targeted boosters, helping allay some investor worries over growth for the vaccinations.

Shares rose 4.3 per cent to $48.55 in premarket trading on the estimate beat, which was mainly due to better-than-expected sales of the vaccine despite the year-on-year dip. Sales of the Covid-19 vaccine have eased from pandemic highs on soft demand for the original shots, sparking concerns over demand in the next few years.

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Pfizer plans to roughly quadruple the price of the vaccine, which it sells with German partner BioNTech, in the US once the government stops buying doses and shifts to a private market.

“Our Covid-19 franchises will remain multibillion-dollar revenue generators for the foreseeable future,” chief executive Albert Bourla said in prepared remarks ahead of a conference call.

Pfizer is also expected to face the loss of patents for some key drugs between 2025 and 2030. The company has turned to deals such as its recent $5.4 billion acquisition of Global Blood Therapeutics Inc and its $11.6 billion purchase of Biohaven to beef up its pipeline.

While some will point to the large Comirnaty Covid vaccine beat as unsustainable, “we’re not yet throwing in the towel, given an emerging pipeline and significant balance sheet flexibility”, said BMO Capital Markets analyst Evan Seigerman.

Third-quarter sales of the Covid-19 vaccine came in at $4.4 billion, blowing past estimates of $2.6 billion, according to five analysts polled by Refinitiv. However, $7.51 billion in sales of the company’s Covid-19 pill Paxlovid missed estimates of $7.66 billion.

The company maintained its full-year sales forecast for Paxlovid at $22 billion.

Pfizer earned $1.78 per share in the third quarter, beating estimates of $1.39.

Separately, the company said its experimental respiratory syncytial virus (RSV) vaccine was found to be effective in a late-stage study in preventing severe infections in infants when given to expectant mothers. – Reuters