Pfizer is working hard to persuade investors that its new drug product line can offset the significant decline in revenue from its COVID-19 vaccines and drugs, which has led management to downgrade expectations multiple times.
According to the Zhītōng Cáijīng APP, on July 30th (Tuesday), before the US stock market opened, Pfizer (PFE.US) announced its second quarter 2024 results. The financial report showed that Pfizer's Q2 revenue was $13.28 billion, a year-on-year increase of 2.2%, exceeding market expectations; adjusted net income was $3.4 billion, a year-on-year decrease of 11%; adjusted earnings per share were $0.60, exceeding market expectations, compared to $0.67 in the same period last year.
Despite the expected decline in revenue due to the COVID-19 pandemic, operating revenue increased by 3% year-on-year; excluding the contribution of Comirnaty and Paxlovid, revenue growth was 14%.
Pfizer is working hard to persuade investors that its new drug product line can offset the significant decline in revenue from its COVID-19 vaccines and drugs, which has led management to downgrade expectations multiple times. Last year, the company's market cap shrank by more than 40%.
The CFO said, 'This is the first time Pfizer has achieved year-on-year revenue growth since COVID-19 vaccine revenue reached its peak in Q4 2022. Importantly, Q2 non-COVID-19 vaccine product operating revenue grew strongly by 14%, indicating our continued focus on commercial execution.'
In May of this year, Pfizer launched a cost-cutting plan that will save $1.5 billion by the end of 2027. Prior to this, Pfizer had disclosed that it would cut $4 billion in expenses by 2024. In the financial report, Pfizer management said they are expected to achieve these goals.
Pfizer is betting on anti-cancer drugs to restore company growth. Last year, it acquired Seagen Inc., which specializes in oncology, for $43 billion. Seagen's drug revenue increased by $845 million this quarter.
Sales of Seagen's anti-cancer drug, Padcev, exceeded expectations, reaching $394 million. Vyndaqel is a drug that treats rare cardiovascular diseases and is one of the company's largest drugs, with sales exceeding expectations at $1.3 billion.
Pfizer announced earlier this month that it is developing a weight loss drug that will be comparable to Novo Nordisk's Wegovy and other drugs. Pfizer's weight loss drug is expected to enter into phase II development this year.
Performance guidance
Pfizer currently predicts adjusted earnings per share in 2024 to be between $2.45 and $2.65, which is 30 cents higher than the previous midpoint forecast. The company has also raised its full-year 2024 revenue forecast to $59.5 billion to $62.5 billion, while the market generally expects $60.58 billion.