Pfizer raised its annual profit forecast on Wednesday and reported first-quarter results that beat Wall Street estimates on cost cuts, a smaller-than-feared drop in sales of its Covid antiviral treatment and strong sales of its pneumonia vaccine.
Sales of cancer treatment Padcev, which Pfizer acquired in a $43 billion deal with Seagen, were also above analysts’ expectations.
The Seagen deal and its $4 billion cost-cutting plan are a key part of Pfizer’s post-Covid growth strategy. Investors are also tracking the performance of the company’s new RSV vaccine, which has lagged behind a rival vaccine from GSK since both were launched.
The company raised the sides of its 2024 earnings forecast by 10 cents and now expects to earn between $2.15 and $2.35 per share. The New York pharmaceutical company’s shares, which have lost 11% of their value this year, rose 1% to $25.89 in pre-market trading.
Seagen’s targeted cancer treatments Padcev and Adcetris brought combined sales of $598 million in the quarter for Pfizer, although Adcetris sales fell short of analysts’ expectations.
“We believe stronger performance in new launches and further progress in the pipeline will be needed to change the stock’s current narrative,” said JP Morgan analyst Chris Schott.
Pfizer said it still expects $8 billion in combined sales from its Covid-19 products, the Comirnaty vaccine it shares with BionTech 22UAy.DE and the oral antiviral drug Paxlovid.
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Tags: Pfizer raises profit forecast based cost cutting smaller drop demand Paxlovid
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