Pfizer backs guidance but weak Paxlovid sales drag on first quarter
2025-04-29 11:41
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(Alliance News) - Pfizer Inc on Tuesday said it is targeting further cost savings after first quarter sales and profit dropped.
The New York-based pharmaceuticals firm said net income fell 4.8% to USD2.97 billion in the first quarter from USD3.12 billion a year prior. Diluted earnings per share declined 5.5% to USD0.52 from USD0.55.
Revenue was also weaker, down 7.8% at USD13.72 billion compared to USD14.88 billion, including an unfavourable impact of foreign exchange of USD256 million.
In response, shares in Pfizer are up 1.0% at USD23.28 in pre-market trading in New York on Tuesday.
The sales decline was primarily driven by a decline in sales of Covid-19 drug Paxlovid, partially offset by growth from Vyndaqel and Comirnaty.
Chair & Chief Executive Albert Bourla said: "We continued to execute with focus and discipline against our strategic priorities, including strengthening our R&D organisation and driving improved productivity. With the underlying strength of our business, we believe we can be agile in navigating an uncertain and volatile external environment."
Pfizer said it is on track to deliver operating margin expansion from its ongoing cost realignment program with around USD4.5 billion of net cost savings by the end of 2025.
The firm announced additional productivity gains are expected of USD1.2 billion through 2027 including R&D cost savings of around USD500 million by the end of 2026.
The first phase of the manufacturing optimization program is on track to deliver around USD1.5 billion in net cost savings by the end of 2027, it added.
Pfizer reaffirmed 2025 guidance and expects full-year revenue of USD61.0 to USD64.0 billion compared to USD63.63 billion in 2024.
It forecast adjusted diluted EPS between USD2.80 to USD3.00 compared to USD3.11 in 2024.
Chief Financial Officer David Denton said: "Our overall solid first-quarter performance demonstrates our continued focus on commercial execution amid US Medicare Part D headwinds. Our focus on operational efficiency and financial discipline is driving strong results to our bottom line. We are currently trending towards the upper end of our 2025 adjusted diluted EPS guidance range"
By Jeremy Cutler, Alliance News reporter
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