Pfizer(US:PFE)2024-10-29 12:06Financial Performance - Third-quarter 2024 revenues reached $17.7 billion, representing a 32% year-over-year operational growth, with a 14% operational growth excluding Paxlovid and Comirnaty contributions[1] - Pfizer raised its full-year 2024 revenue guidance to a range of $61.0 to $64.0 billion, up from the previous range of $59.5 to $62.5 billion[9] - Total revenues for Q3 2024 reached $17,702 million, a 31% increase from $13,491 million in Q3 2023[70] - Product revenues for Q3 2024 were $15,417 billion, up 33% from $11,587 billion in Q3 2023[50] - Alliance revenues increased by 16% to $1.900 billion in Q3 2024, compared to $1.645 billion in Q3 2023[50] - Royalty revenues surged 48% to $384 million in Q3 2024, compared to $260 million in Q3 2023[50] - Net income attributable to Pfizer Inc. common shareholders was $4.465 billion in Q3 2024, compared to a loss of $2.382 billion in Q3 2023[50] - Earnings per share (EPS) from continuing operations for Q3 2024 was $0.79, a significant recovery from a loss of $0.42 in Q3 2023[50] - Adjusted income for Q3 2024 was $4.874 billion, compared to $3.219 billion in Q3 2023, indicating improved operational performance[60] - Pfizer's GAAP net income was $7.621 billion for the nine months ended September 29, 2024, with earnings per share (EPS) of $1.34[61] Revenue Breakdown - Third-quarter 2024 Paxlovid revenues were $2.7 billion, a significant increase of $2.5 billion operationally compared to the prior-year quarter[16] - Comirnaty revenues for the third quarter of 2024 were $1.4 billion, reflecting a 9% operational increase year-over-year[18] - U.S. revenues increased by 50% to $12,064 million, up from $8,064 million in the previous year[70] - International revenues grew by 4% to $5,638 million, compared to $5,427 million in Q3 2023[70] - Paxlovid sales surged to $2,703 million, a significant increase from $202 million in Q3 2023[70] - Comirnaty revenues grew by 9% to $1,422 million, compared to $1,306 million in the same quarter last year[70] - Eliquis sales increased by 8% to $5,534 million, while Paxlovid sales rose by 13% to $4,989 million[71] - Comirnaty sales saw a significant decline of 66%, dropping to $1,970 million from $5,858 million in the previous year[71] Cost Management - The company is on track to achieve net cost savings of at least $5.5 billion from cost reduction initiatives, with at least $4 billion anticipated by the end of 2024[1] - Adjusted Cost of Sales decreased to $4,874 million in Q3 2024 from $8,906 million in Q3 2023, representing a 45% decline[28] - Adjusted R&D Expenses decreased by 4% to $2,561 million in Q3 2024 compared to $2,679 million in Q3 2023[28] - Restructuring charges and certain acquisition-related costs totaled $313 million in Q3 2024, compared to $155 million in Q3 2023[52] - The company launched a Manufacturing Optimization Program in May 2024 aimed at reducing the cost of goods sold[74] Research and Development - Pfizer invested $7.8 billion in internal R&D projects during the first nine months of 2024[13] - The FDA approved Abrysvo for the prevention of lower respiratory tract disease caused by RSV in individuals aged 18 to 59 years at increased risk, marking a significant expansion of its indication[30] - Pfizer and BioNTech's combination mRNA vaccine candidate for COVID-19 and influenza did not meet one primary immunogenicity objective, achieving higher influenza A responses but failing against the influenza B strain[33] - Ponsegromab showed a 5.6% mean increase in body weight at the highest dose in a Phase 2 study for cancer cachexia, with improvements in appetite and muscle mass[33] - The company is discussing late-stage development plans for ponsegromab with regulators, aiming to start registration-enabling studies in 2025[33] Tax and Financial Guidance - The effective tax rate on reported income for the third quarter of 2024 was 5.0%, a decrease from 28.8% in the prior-year quarter[20] - The effective tax rate on Adjusted Income was 10.8% in Q3 2024, down from 22.3% in Q3 2023[28] - Financial guidance for full-year 2024 anticipates an unfavorable impact of approximately $0.3 billion on revenues due to foreign exchange rate changes[40] - Adjusted diluted EPS guidance for 2024 was increased to a range of $2.75 to $2.95, reflecting a $0.30 increase at the midpoint[11] Strategic Initiatives - Pfizer introduced PfizerForAll™, a digital platform aimed at improving healthcare access for common illnesses, streamlining care and prescription processes[35] - The company is focusing on improving its commercial organization to enhance execution speed and market responsiveness[72] - Pfizer's acquisition of Seagen in December 2023 is expected to enhance its oncology portfolio and improve market focus[74] - Pfizer is committed to achieving its environmental sustainability and ESG goals amidst ongoing operational challenges[76] - The company is collaborating with other firms for co-research and co-development of certain products, with varying commercialization rights by market[78] Market Challenges - The company anticipates ongoing challenges in the COVID-19 product market, with potential reduced demand for Comirnaty and Paxlovid leading to inventory write-offs[75] - Pfizer's financial guidance is subject to significant uncertainties, including regulatory approvals and market dynamics affecting product launches[74] - Regulatory authorities may require additional data for product candidates or deny approval altogether, impacting future product launches[78]