Pfizer(PFE) - 2024 Q4 - Annual Results

Financial Performance - Full-Year 2024 Revenues reached $63.6 billion, reflecting a 7% Year-over-Year Operational Growth, with a 12% growth excluding contributions from Paxlovid and Comirnaty[4] - Fourth-Quarter 2024 Revenues totaled$ 17.8 billion, representing a 22% Year-over-Year Operational Growth, with an 11% growth excluding contributions from Paxlovid and Comirnaty[4] - Full-Year 2024 Adjusted Diluted EPS was $3.11, a 69% increase compared to the previous year[7] - Pfizer achieved a 12% operational revenue growth for non-COVID products in Full-Year 2024, demonstrating strong commercial execution[4] - Full-year 2024 revenues totaled$ 63.6 billion, an increase of $4.1 billion, or 7%, compared to full-year 2023[21] - Fourth-quarter 2024 product revenues increased by 22% to$ 15.084 billion compared to $12.339 billion in Q4 2023[35] - Total revenues for full-year 2024 reached$ 63.627 billion, a 7% increase from $59.553 billion in 2023[35] - The company reported a net income of$ 8.031 billion for full-year 2024, compared to $2.119 billion in 2023[35] - Diluted earnings per share for full-year 2024 were$ 1.41, up from $0.37 in 2023[35] - Non-GAAP adjusted net income for Full-Year 2024 was$ 17,716 million, with earnings per share of $3.11[51] Cost Management and Savings - The company is on track to deliver overall net cost savings of approximately$ 4.5 billion by the end of 2025 from its ongoing cost realignment program[4] - Pfizer's ongoing cost realignment program is expected to achieve approximately $4.5 billion in net cost savings by the end of 2025[28] - The company plans to return to a balanced capital allocation strategy by the end of 2025, including potential share repurchases[10] - Restructuring charges for full-year 2024 totaled$ 2.419 billion, a decrease of 18% from $2.943 billion in 2023[39] Research and Development - Pfizer invested$ 10.8 billion in internal research and development projects in 2024, aiming to enhance future growth prospects[12] - Adjusted R&D Expenses for Q4 2024 increased by 8% to $2,986 million, with full-year R&D Expenses at$ 10,694 million, a 1% increase from 2023[20] - Research and development expenses for full-year 2024 were $10.822 billion, a slight increase of 1% from$ 10.679 billion in 2023[35] Product Performance - The Global Biopharmaceuticals Business (Biopharma) reported Fourth-Quarter 2024 revenues of $17.4 billion, a 23% increase compared to the prior-year quarter[8] - The Vyndaqel family saw a 60% operational growth in Fourth-Quarter 2024, driven by strong demand and increased affordability[14] - The operational revenue growth was primarily driven by significantly higher global revenues for Paxlovid and the addition of legacy Seagen revenues following the acquisition in December 2023[21] - Primary Care revenues increased by 27% to$ 8,911 million in Q4 2024, compared to $7,044 million in Q4 2023[59] - Specialty Care revenues rose by 12% to$ 4,438 million in Q4 2024, compared to $3,953 million in Q4 2023[59] - Oncology revenues grew by 27% to$ 4,064 million in Q4 2024, compared to $3,189 million in Q4 2023[59] Future Guidance - Pfizer's 2025 financial guidance includes projected revenues in a range of$ 61.0 to $64.0 billion and Adjusted Diluted EPS in a range of$ 2.80 to $3.00[9] - Full-year 2025 financial guidance includes an anticipated unfavorable revenue impact of approximately$ 0.6 billion due to generic and biosimilar competition[30] Acquisitions and Strategic Moves - The company completed the acquisition of Seagen in December 2023, which is expected to enhance business development opportunities[68] - Pfizer sold 700 million ordinary shares of its investment in Haleon for total net consideration of approximately $3.0 billion, reducing its ownership interest from approximately 15% to 7%[25] - The company announced positive topline results from the pivotal Phase 3 CREST trial evaluating sasanlimab in combination with BCG for high-risk non-muscle invasive bladder cancer[24] - Pfizer's Commercial Oncology organization will transition into the U.S. Commercial organization effective January 1, 2025, creating a single U.S. commercial division[26] Regulatory and Market Challenges - Regulatory challenges include the need to address comments from authorities like the FDA and EMA, which could impact product approvals and market potential[68] - The company faces competition from new entrants, generics, and biosimilars, which may affect the marketing of both new and existing products[69] - There are uncertainties regarding the demand for COVID-19 products, which may lead to reduced revenues and excess inventory[69] - The impact of the Inflation Reduction Act of 2022 may affect pricing and access to medicines, influencing revenue streams[73] - The company is navigating legal and regulatory challenges that could impact operations and financial results, including potential changes in tax laws[73] Tax and Interest Expenses - The effective tax rate on reported income for Q4 2024 was 18.9%, compared to (24.0%) in Q4 2023[20] - The effective tax rate for Q4 2024 was 4,220.5%, compared to 19.2% in Q4 2023, influenced by changes in the jurisdictional mix of earnings[46] - In Q4 2024, net interest expense increased to$ 569 million, up from $80 million in Q4 2023, primarily due to lower interest income and higher interest expenses related to the$ 43.4 billion Seagen acquisition[42] - The full-year 2024 net interest expense reached $2.546 billion, significantly higher than$ 585 million in 2023, driven by the issuance of $31 billion in senior unsecured notes and$ 8 billion in commercial paper for the Seagen acquisition[42] Asset Impairments and Gains - Intangible asset impairment charges for Q4 2024 totaled $2.9 billion, including$ 1 billion for B7H4V and $475 million for Medrol, reflecting changes in development plans and competition[43] - Full-year 2024 included a$ 240 million intangible asset impairment charge related to a Phase 3 study for Duchenne muscular dystrophy, reflecting unfavorable clinical trial results[43] - The company recognized certain asset impairments of $(2,946) million in Fourth-Quarter 2024 and$ (3,295) million for Full-Year 2024[51] Strategic Initiatives - The company announced a strategic reorganization to enhance focus and execution, including the creation of the Pfizer Oncology Division[64] - Pfizer plans to implement a Manufacturing Optimization Program to reduce costs, announced in May 2024[65] - The company is focused on achieving climate goals and advancing environmental sustainability initiatives[69] - The company is addressing cybersecurity risks, including potential disruptions from cyber-attacks and the integrity of information technology systems[73]