Could 2 (Reuters) – Pfizer Inc (PFE.N) on Tuesday reported higher-than-expected first-quarter income and revenue, buoyed by demand for its COVID-19 merchandise, and reaffirmed its 2023 earnings forecast because it banks on newer medication to contribute to development later this yr.
The corporate has stated it expects 2023 to be a low level for COVID product gross sales, earlier than probably returning to development in 2024. However gross sales of each its vaccine and oral antiviral remedy got here in above Wall Road estimates.
Pfizer nonetheless expects considerably decrease gross sales of COVID merchandise within the second quarter.
Wells Fargo analyst Mohit Bansal stated it was a optimistic shock that Pfizer didn’t decrease its full-year COVID forecast.
Pfizer is pumping billions of {dollars} into analysis and acquisitions to mitigate an anticipated $17 billion hit to income by 2030 from patent expirations for high medication, and a decline in demand for COVID merchandise.
The corporate stated it will turn into extra balanced with allocating capital after a string of offers within the final two years as soon as its current $43 billion buyout of Seagen (SGEN.O) closes.
Pfizer stated it stays on monitor to realize its objective of seven% to 9% non-COVID income development this yr, pushed by newer medication.
“Provided that numerous launches are anticipated to happen within the third- and fourth-quarters of 2023, we anticipate that our non-COVID revenues will develop extra shortly within the again half of the yr,” Chief Monetary Officer David Denton stated on a name with analysts.
Citi analyst Andrew Baum stated Pfizer’s non-COVID income missed expectations for the quarter.
The corporate is getting ready to launch an RSV vaccine, an ulcerative colitis remedy and a hair loss drug by the tip of this yr, pending U.S. approval.
COVID-19 vaccine gross sales plunged 77% to $3.06 billion within the quarter, however topped diminished estimates of $2.37 billion, in accordance with Refinitiv knowledge.
Gross sales of antiviral Paxlovid almost tripled to $4.07 billion, bolstered by demand in China. Analysts’ had estimated $3.13 billion for the quarter.
Pfizer expects a 2023 revenue of $3.25 to $3.45 per share and COVID merchandise gross sales of about $21.5 billion.
General income for the primary quarter fell 29% to $18.3 billion, however topped estimates of $16.59 billion.
Excluding gadgets, the U.S. drugmaker’s revenue of $1.23 per share topped Wall Road estimates by 25 cents.
Pfizer shares had been down 0.9% – lower than the broader market – at $38.84.
Reporting by Bhanvi Satija and Raghav Mahobe in Bengaluru; Modifying by Sriraj Kalluvila
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