Written by Bhanvi Satya and Patrick Wingrove
(Reuters) – Pfizer on Wednesday raised its full-year revenue forecast, reporting first-quarter profit that beat Wall Street expectations, boosted by cost-cutting efforts and better-than-expected sales of its coronavirus antiviral treatment. did.
Sales of Padcef, the advanced bladder cancer drug that Pfizer acquired through its $43 billion deal with Seagen, also exceeded analysts' expectations.
The deal with Seagen and its $4 billion cost-cutting plan is a key part of Pfizer's post-COVID-19 growth strategy.
The company raised the ends of its 2024 earnings estimate range by 10 cents and now expects earnings per share to be between $2.15 and $2.35, below its first-quarter estimates.
“We are cautiously optimistic about what we will achieve in 2024,” Chief Executive Albert Bourla said on a conference call with analysts.
The New York-based drugmaker's stock has lost 11% of its value this year, but rose 4% to $26.64.
“Investors are so used to disappointment that I think a strong quarter and a rating upgrade was always seen as positive,” said Hargreaves Lansdown analyst Deren Nathan.
Seagen's targeted cancer drugs Padcef and ADCETRIS generated combined sales of $598 million for Pfizer in the quarter, but ADCETRIS' sales were lower than analysts expected. Pfizer said Seagen products will be its oncology unit's biggest growth driver in the near term.
Sales of Abrisvo, a drug that protects against respiratory syncytial virus (RSV), were $145 million, falling short of analysts' expectations of $353.3 million.
Pfizer is competing for market share with rival GSK and RSV vaccines, but has so far lost out since both were launched last year. GSK's Alexby now owns two-thirds of the market for the new RSV vaccine.
“It's good to see Abrisvo accelerate,” Nathan added. “The $145 million price tag seems disappointing. GSK's Arexvy seems to be gaining acceptance at a faster pace.”
Pfizer says it has made progress on agreements with pharmacies for its respiratory syncytial virus vaccine and plans to seek approval for use in all adults, which will better position it for the fall 2024 season. He said he was deaf.
GSK said early Wednesday that Alexby had first-quarter sales of 182 million pounds ($227.26 million), more than 80% of which came from the United States. The company said it hopes to start inoculating people aged 50 to 59 before the start of the next RSV season.
Profit maintenance
Bourla said the risk to Pfizer's product from the U.S. government's Medicare price negotiations is “not that great” because by the time the drug is selected, it will be nearing patent expiration.
Pfizer's blood thinner Eliquis was considered one of the 10 most expensive drugs for Medicare, with the first round of negotiated pricing going into effect in 2026.
Pfizer executives on the conference call said the company has applied to extend the U.S. patents for its heart disease drugs Vyndamax and Vindakel until December 2028. These drugs are expected to generate more than $4 billion in revenue this year.
Pfizer said it still expects combined sales of its COVID-19 products, Comilnati, the vaccine it shares with BioNTech, and Paxrovid, an oral antiviral drug, to total $8 billion. Ta.
Sales of coronavirus-related products in 2023 fell to $12.5 billion, down 78% from the peak of $57 billion in 2022. Analysts expect sales of both products to be about $9 billion this year.
Pfizer last year renegotiated its contract with the U.S., allowing the government to return unused Paxrobid stock. During the quarter, we recorded a favorable adjustment of $771 million related to the U.S. government's resumption of certain treatment courses.
A Pfizer spokesperson said the $771 million adjustment to last quarter's revenue reversal estimate of $3.5 billion is based on an estimated 6.5 million treatment courses returned by the U.S. government by February 29, 2024. He said this reflects the fact that there were 1.4 million fewer cases.
Prevnar pneumonia vaccine was a bright spot, with sales of $1.69 billion, exceeding expectations of $1.66 billion.
Pfizer posted adjusted earnings of 82 cents per share in the quarter, beating analysts' expectations by 30 cents, according to LSEG data.
(Reporting by Bhanvi Satija and Sriparna Roy in Bengaluru and Patrick Wingrove in New York; Editing by Arun Koyulu and Bill Berkrot)
