In a significant update, Pfizer has revised its full-year financial outlook after announcing second-quarter results that exceeded market expectations. The pharmaceutical giant reported substantial growth driven largely by its oncology and specialty care segments, alongside powerful contributions from its recent commercial launches. For 2024, Pfizer has adjusted its earnings per share (EPS) forecast to a range of $2.45 to $2.65, a notable increase from its previous guidance of $2.15 to $2.35.
The anticipated revenue range has also been updated to between $59.5 billion and $62.5 billion, compared to an earlier projection of $58.5 billion to $61.5 billion. Analysts on Capital IQ are currently predicting an EPS of $2.44 on revenues totaling $60.58 billion, reinforcing the optimism surrounding Pfizer’s financial trajectory. "We entered 2024 focused on delivering on our financial commitments and commercial performance," commented Chief Financial Officer David Denton during prepared remarks.
"With a successful first half now behind us, we believe it is appropriate to update our full-year earnings outlook to reflect our impressive business performance." Key to this positive revision is the expectation of combined sales from its COVID-19 products — Comirnaty and Paxlovid — which are now estimated to generate approximately $8.5 billion, rising from a prior estimate of $8 billion. During the quarter ending June 30, adjusted EPS saw a decline of 11% year-over-year, settling at $0.60, yet this surpassed analysts’ expectations who had forecasted EPS of $0.46.
Revenue growth was also notable, rising to $13.28 billion from $13.01 billion over the same period last year, narrowly outstripping the $13.02 billion forecast provided by analysts. "I am pleased with the strong performance of our product portfolio in the second quarter, highlighted by several of our acquired products and key in-line brands, along with new commercial launches," stated Chief Executive Albert Bourla.
He elaborated on the exceptional growth experienced in the oncology sector, where significant revenue was generated from legacy-Seagen products, which have become critical to the company’s portfolio. In the specialty care segment, Pfizer saw a revenue increase of 12% year-over-year, totaling $4.08 billion.
This growth was largely driven by a remarkable 69% increase in the sales of Vyndaqel and its family of treatments for transthyretin amyloid cardiomyopathy. Furthermore, oncology sales surged by 26%, reaching $3.96 billion, attributed to a 17% boost in the company’s Xtandi medication, which is used for prostate cancer treatment. However, it wasn't all positive news for Pfizer, as revenues from primary care — which encompasses both Comirnaty and Paxlovid — dropped by 16% to $4.95 billion year-over-year.
Sales of Comirnaty experienced a dramatic decline, plummeting by 87% to $195 million, while Paxlovid saw a substantial increase of 76% in sales, driven by rising infection rates and heightened demand in certain international regions. Additionally, during the second quarter, Pfizer reported a one-time charge of $1.3 billion associated with its manufacturing optimization initiative, which primarily includes employee severance costs.
Denton noted that this program, introduced in May, aims to achieve savings of approximately $1.5 billion by the end of 2027 in its initial phase. Looking forward, Pfizer expects to record a roughly $400 million charge this quarter tied to the cessation of its Duchenne muscular dystrophy program. This proactive financial adjustment reflects the ongoing commitment of Pfizer to optimize its business practices and reinforce its position in a competitive market..