Drugmaker Pfizer has upgraded its sales forecasts as reporting strong second-quarter demand for some of its older medicines.
Sales for the year will be $60.5 billion to $62.5 billion (€52.5-€54.25 billion), Pfizer said on Tuesday, compared with its earlier forecast of $59.5 billion to $62.5 billion.
Revenue in the period was higher than Wall Street had estimated, driven partly by better than expected sales of the blood thinner Eliquis, the heart drug Vyndaqel and cancer therapy Padcev.
The New York-based drugmaker has spent the past two years reshaping itself after a collapse in demand for its Covid-19 products. In 2023, the company embarked on a sweeping cost-cutting programme targeting $7 billion in savings over five years. That included using more automation, artificial intelligence and other digital tools, as well as reducing its workforce in some places like Switzerland.
On Tuesday, the drugmaker said it was expanding its cost-cutting programme, with additional savings of $2.5 billion expected through 2029.
The company will have to navigate the next phase of its savings programme without a permanent head of finance. Chief financial officer David Denton, who is viewed as a calm force with strong financial stewardship, is set to leave later this month to go to Nike. Company veteran Cecile Guegan will take his place as interim CFO.
Pfizer shares were little changed early trading in New York. They had gained less than 1 per cent this year through Monday’s close.
On an adjusted basis, the company reported a profit of 77 US cents per share, compared with analysts’ estimates of 68 cents per share, according to data compiled by LSEG.
Eliquis sales rose 19 per cent on an operational basis, driven by higher US net pricing from lower rebates and a favourable channel mix, along with stronger demand across global markets. Sales of Eliquis, which Pfizer sells with Bristol Myers Squibb, were $2.43 billion in the quarter, above analysts’ estimates of $1.93 billion.
The company is also counting on newer medicines to lessen its dependence on ageing blockbuster drugs, while investors are watching for signs that its $10 billion acquisition of Metsera can help establish a meaningful foothold in the fast-growing obesity market.
Pfizer has said it expects to return to stronger growth after 2028.
Chief executive Albert Bourla struck an optimistic tone, saying the company’s “launched and acquired products performed well ... our obesity programme is advancing with meaningful momentum”. Revenue from acquired products rose 25 per cent on an operational basis during the quarter.
Investors are sceptical about Pfizer’s pipeline. Expensive bets in oncology and obesity have yet to pay off, and investors are concerned about the company’s ability to replace the estimated $35 billion patent cliff it’s facing by the end of the decade.
One of the most high-profile tests came in June, when Pfizer said an experimental drug failed to improve survival in patients with an advanced form of lung cancer that couldn’t be treated with surgery. The drug came from Pfizer’s $43 billion purchase of Seagen in late 2023.
The company had expected it could be the first of a new class of drugs that deliver potent cancer-killing compounds directly to tumours, called directed antibody-drug conjugates.
Despite the setback, analysts still see a number of near-term opportunities that could “help reshape the Pfizer narrative”, BMO Capital Markets analyst Evan Seigerman said in a note before earnings were released. Still, “persistent questions around the value of the Seagen acquisition suggest Pfizer still needs to provide greater visibility into the breadth and timing of its oncology opportunities”. – Bloomberg/Reuters
