Pfizer Inc., the pharmaceutical giant known for its significant contributions during the COVID-19 pandemic, has reported second-quarter earnings and revenue that surpassed Wall Street expectations. The company also raised its full-year outlook, driven by strong sales of its COVID-19 antiviral pill Paxlovid, robust performance from its non-COVID products, and a broad cost-cutting initiative.
Pfizer's adjusted earnings for the second quarter stood at 60 cents per share, significantly above the anticipated 46 cents per share, based on a survey of analysts by LSEG. The company recorded revenue of $13.28 billion, exceeding the expected $12.96 billion. This marked a 2% increase from the same period last year, highlighting the resilience of Pfizer's diversified product portfolio amid declining COVID-related sales.
The company now forecasts adjusted earnings for the fiscal year between $2.45 and $2.65 per share, up from its previous guidance of $2.15 to $2.35 per share. Additionally, Pfizer has raised its revenue outlook to a range of $59.5 billion to $62.5 billion, from an earlier forecast of $58.5 billion to $61.5 billion. This includes approximately $5 billion expected from its COVID-19 vaccine and $3.5 billion from Paxlovid.
Despite the downturn in demand for its COVID-19 products as the world transitions out of the pandemic, Pfizer has managed to stabilize its business through a strategic cost-cutting plan. Launched in October, this initiative aims to save at least $4 billion by the end of 2024. The company has also unveiled a multi-year plan to further reduce costs, with the first phase expected to save $1.5 billion by 2027.
Pfizer's CEO, Murray Auchincloss, emphasized the company's strategic focus, stating, "We are driving focus across the business and reducing costs, all while building momentum in our drive to 2025." This strategic shift is part of Pfizer's broader efforts to streamline operations and boost profitability.
One of the significant drivers of Pfizer's improved outlook is its oncology segment, bolstered by the $43 billion acquisition of Seagen last year. Seagen's approved cancer therapies contributed $845 million in revenue for the quarter. This includes $394 million from Padcev, a treatment for bladder cancer, and $279 million from Adcetris, which targets certain lymphomas.
Non-COVID product sales also showed notable growth. Excluding COVID-related products, Pfizer's revenue for the second quarter rose 14% on an operational basis. The company's cardiomyopathy treatments, Vyndaqel and Vyndamax, generated $1.32 billion in sales, marking a 69% increase from the same period last year. Pfizer's blood thinner, Eliquis, co-marketed with Bristol Myers Squibb, posted $1.88 billion in revenue, up 7% year-over-year.
Pfizer's COVID-19 antiviral pill, Paxlovid, saw a substantial increase in sales, bringing in $251 million for the quarter, a 76% rise from the previous year. This growth is attributed to higher infection rates and increased demand in certain international markets. In contrast, sales of Pfizer's COVID-19 vaccine, Comirnaty, dropped 87% to $195 million due to reduced demand and lower contract deliveries in international markets.
The company's recent performance and strategic initiatives have garnered positive reactions from analysts. RBC Capital Markets described Pfizer's second-quarter earnings as "resilient," noting that the company's dividend increase and reduction in net debt were positive indicators for investors. Pfizer's net debt decreased to $22.6 billion by the end of the second quarter, down from $23.7 billion a year earlier.
Looking ahead, Pfizer faces challenges related to the evolving pharmaceutical market post-pandemic. The company is also preparing for potential impacts from President Joe Biden's Inflation Reduction Act, which includes price negotiations for drugs like Eliquis under Medicare. Despite these challenges, Pfizer remains optimistic about its future, with plans to continue investing in high-value areas such as oncology and cardiovascular treatments.
