Pharmaceutical and biotechnology company Pfizer Inc. missed out on revenue estimates in its latest quarterly revenue published Aug. 1 amid declining sales of its COVID-19 products.
The U.S. drugmaker reported second-quarter revenue of $12.7 billion, missing out on analysts’ estimates of $13.27 billion, according to Refinitiv data, and marking a 54 percent drop from $27.74 billion in the same period a year ago.
The company said sales of its Covid-19 products, Comirnaty and Paxlovid, have faced declining demand.
Comirnaty sales declined 83 percent, to $1.49 billion, in the second quarter, and antiviral treatment Paxlovid revenue dropped 98 percent, to $143 million.
Together, those products bought in $1.6 billion in revenue for the second quarter of 2023, Pfizer said, down from the roughly $14 billion in sales during the year-ago period. Analysts had expected sales of $1.40 billion for the vaccine and $1.08 billion for Paxlovid.
Other Pfizer drugs, including Eliquis, a blood-thinner, also missed analysts’ estimates in the second quarter.
However, the company maintained its forecast for annual COVID revenues at about $21.5 billion. Excluding sales of the company’s COVID vaccine and COVID antiviral pill Paxlovid, revenue grew 5 percent operationally, Pfizer said.
Vaccine Demand Dwindles
The vaccine maker reported a profit of $0.67 per share, while analysts had expected $0.57.Overall, the New York-based company reported a decline in net income in the three months ended June at $2.33 billion, down from $9.91 billion a year earlier.
The company narrowed its 2023 revenue guidance range to $67–70 billion, down from a previous forecast of $67–71 billion while maintaining its outlook for adjusted diluted earnings per share of $3.25 to $3.45.
Pfizer, like fellow vaccine maker Moderna, said it anticipates COVID-related sales to decline for the year as demand for the shots, which have raised safety concerns and have been linked to adverse reactions such as myocarditis—which can cause death— blood clots, and instances of neurological disorders, have dropped off.
Studies by the Centers for Disease Control have also acknowledged that natural immunity gives better protection against COVID-19 than both primary series of vaccination and vaccination with a messenger RNA booster on top of a primary series.
Pfizer shares were down around 1 percent in premarket trading while its shares have fallen nearly 30 percent so far this year.
Pfizer Launches New Products
“Despite a few near-term individual product revenue challenges, we believe the company is well positioned for accelerated growth of our non-COVID products in the second half of 2023. The COVID environment continues to evolve rapidly and remains highly unpredictable. In spite of this uncertainty, the company is maintaining its focus on ensuring successful fall vaccinations during the respiratory infection season,” Mr. Denton added.Elsewhere, Dr. Albert Bourla, Pfizer chairman and chief executive officer, touted the company’s “significant progress” toward its goal to launch 19 new products and indications in an 18-month span.
The pharmaceutical giant announced in December 2022 that it was investing more than $2.5 billion at its drug-making plants in Belgium and Ireland to roll out new products, including treatments for respiratory syncytial virus (RSV), ulcerative colitis, and migraines, in order to counteract declining COVID-19 vaccine sales decline.
Dr. Bourla said the company has launched 11 such new products so far and has attained “key milestones for several products,” including the U.S. launches of Prevnar 20, aimed at preventing invasive pneumococcal disease (IPD) in infants, and Zavzpret, a nasal spray used to treat migraines.
The company has also received U.S. approvals and launches for Abrysvo to prevent lower respiratory tract disease caused by the respiratory syncytial virus in older adults, Litfulo to treat severe alopecia areata in adults and adolescents 12 years and older, and the Talzenna plus Xtandi combination for prostate cancer.
It has also received U.S. regulatory approval for U.S. approvals for Ngenla, a medication used to treat growth hormone deficiency in pediatric patients aged three years and older. That drug is expected to be available on prescription later this month.
“We look forward to continuing our progress in the second half of 2023, driven by commercial execution, scientific innovation, and our never-ending commitment to delivering breakthroughs for patients,” Dr. Bourla said.
