From CNBC:

Pfizer reported a surprise adjusted fourth-quarter profit, as its declining Covid business performed better than expected. The company reversed around $3.5 billion in revenue related to the expected return of 6.5 million doses of its Covid drug, Paxlovid, from the U.S. government, which was less than initially expected.

The Covid vaccine generated $5.36 billion in revenue, a 53% decrease from the previous year, but higher than analysts’ expected sales of $4.99 billion. To address declining revenue, Pfizer has introduced a $4 billion cost-cutting plan to improve its bottom line and boost investor confidence.

Pfizer reiterated its full-year 2024 revenue guidance, expecting revenue of $58.5 billion to $61.5 billion, including around $8 billion from its Covid products and contributions from its recently acquired cancer drug developer Seagen. The company forecasts adjusted earnings of $2.05 to $2.25 per share.

Pfizer’s fourth-quarter revenue was down 41% from the previous year, with a net loss of $3.37 billion. Revenue from its Covid products in 2023 decreased by 78%, totaling $12.5 billion.

Excluding Covid products, Pfizer’s revenue for the fourth quarter grew by 8% operationally. The company benefited from strong sales of the new vaccine against respiratory syncytial virus and its blood thinner, Eliquis, which brought in $1.61 billion in revenue.

Pfizer’s group of shots to protect against pneumococcal pneumonia faced lower demand and unfavorable timing of customer orders, leading to an 8% decrease in sales, raising concerns among analysts.

Pfizer saw a 40% drop in shares in 2023 due to declining demand for its Covid products, prompting the company to substantially slash its revenue forecast and undertake a cost-cutting program. The company also scrapped a twice-daily version of its experimental weight loss pill and investors are now waiting for data on a once-daily form.

Pfizer’s $43 billion acquisition of Seagen, which officially closed during the fourth quarter, aims to restore investor confidence. However, Wall Street remains skeptical about Pfizer’s ability to turn things around, with the company’s stock already down more than 4% for the year.



Read more: Pfizer (PFE) Q4 earnings report 2023