Pfizer(US:PFE)2024-05-08 19:56Financial Performance - Total revenues for the three months ended March 31, 2024, were $14,879 million, a decrease of 19% compared to $18,486 million for the same period in 2023[11]. - Product revenues for the same period were $12,443 million, down from $16,221 million, reflecting a decline of 23%[11]. - Alliance revenues increased to $2,172 million, compared to $2,060 million, marking a growth of 5%[11]. - Net income attributable to Pfizer Inc. common shareholders for the three months ended March 31, 2024, was $3,115 million, down from $5,543 million, a decrease of 44%[11]. - Earnings per share (EPS) for the three months ended March 31, 2024, were $0.55, compared to $0.98 for the same period in 2023, a decline of 44%[11]. - The company reported income from continuing operations before tax provision of $3,421 million, down from $6,270 million, a decrease of 45%[11]. - Comprehensive income attributable to Pfizer Inc. for the three months ended March 31, 2024, was $3,319 million, down from $5,558 million for the same period in 2023[13]. - Net income for the three months ended March 31, 2024, was $3,123 million, a decrease of 44% compared to $5,556 million for the same period in 2023[13]. Expenses and Costs - Research and development expenses for the quarter were $2,493 million, slightly down from $2,505 million in the prior year[11]. - Cost of sales for the quarter was $3,379 million, a decrease from $4,886 million, reflecting a reduction of 31%[11]. - Amortization of intangible assets for the quarter was $1,308 million, up from $1,103 million, an increase of 19%[11]. - The company incurred restructuring charges and certain acquisition-related costs amounting to $102 million, compared to $9 million in the same period last year[11]. - The company reported depreciation and amortization expenses of $1,736 million for the three months ended March 31, 2024, an increase from $1,487 million in the prior year[18]. Assets and Liabilities - Total current assets decreased to $42,415 million as of March 31, 2024, down from $43,333 million at December 31, 2023[14]. - Total liabilities decreased to $128,537 million as of March 31, 2024, compared to $137,213 million at December 31, 2023[14]. - Cash and cash equivalents significantly decreased to $719 million from $2,853 million at December 31, 2023[14]. - Trade accounts receivable decreased to $10,989 million as of March 31, 2024, from $11,566 million at December 31, 2023[14]. - Total equity attributable to Pfizer Inc. shareholders increased to $92,282 million as of March 31, 2024, from $89,014 million at December 31, 2023[14]. - The company reported a decrease in inventories to $10,892 million as of March 31, 2024, compared to $10,189 million at December 31, 2023[14]. - Short-term borrowings decreased to $8,232 million as of March 31, 2024, from $10,350 million at December 31, 2023[14]. - The company’s long-term debt remained relatively stable at $61,307 million as of March 31, 2024, compared to $61,538 million at December 31, 2023[14]. Cash Flow - Net cash provided by operating activities for the three months ended March 31, 2024, was $1,090 million, down from $1,212 million in the same period last year[18]. - The company reported a net cash increase from investing activities of $1,732 million for the three months ended March 31, 2024, compared to $3,315 million in the prior year[18]. - Cash dividends paid during the three months ended March 31, 2024, were $2,372 million, compared to $2,303 million in the same period last year[18]. Acquisitions and Investments - Pfizer completed the acquisition of Seagen for a total consideration of $44.2 billion, with the acquisition date on December 14, 2023[26]. - The provisional amount recognized for identifiable intangible assets from the Seagen acquisition was $7,970 million, subject to adjustments[27]. - Goodwill recognized from the Seagen acquisition was $17,650 million after measurement period adjustments[28]. - Pfizer sold approximately 30% of its investment in Haleon for total consideration of $3.5 billion, recognizing a gain of $150 million in the first quarter of 2024[31]. - The carrying value of Pfizer's investment in Haleon decreased to $7,922 million as of March 31, 2024, down from $10,980 million as of April 2, 2023[35]. Legal Proceedings - The company is involved in various legal proceedings, including patent litigation, which could result in significant revenue loss if adverse outcomes occur[87]. - Pfizer is currently facing challenges to its patent rights in multiple jurisdictions, which could impact the market entry of generic products[88]. - The company has settled several patent-infringement actions related to Xeljanz with generic manufacturers, with ongoing litigation against Sinotherapeutics[90]. - Several generic companies have filed ANDAs with the FDA for Mektovi, challenging multiple patents expiring between 2030 and 2033, leading to patent infringement actions by the company[91]. - In June 2023, the company initiated patent infringement actions against Teva Pharmaceuticals regarding Mektovi, asserting the validity of three patents[91]. - Multiple generic companies have filed ANDAs for tafamidis and tafamidis meglumine, prompting the company and Scripps Research Institute to file patent infringement actions in August 2023[92]. - The company is involved in various legal proceedings regarding Comirnaty, including multiple complaints alleging patent infringement filed by Alnylam and Moderna, with ongoing litigation in both U.S. and European courts[94][95]. Revenue Breakdown - Biopharma segment revenues for Q1 2024 were $14,604 million, a decrease of 19% from $18,173 million in Q1 2023[129]. - U.S. revenues increased by 9% to $9,514 million in Q1 2024, compared to $8,711 million in Q1 2023[131]. - Revenues from international developed markets fell by 43% to $3,198 million, while emerging markets dropped by 48% to $2,167 million[131]. - Significant product revenues included $2,035 million from Paxlovid in Q1 2024, down from $4,069 million in Q1 2023[133]. - Oncology division revenue increased to $2,572 million in Q1 2024 from $1,983 million in Q1 2023, marking a growth of about 30%[136]. - Revenue from Oxbryta for sickle cell disease rose to $84 million in Q1 2024, up from $71 million in Q1 2023, reflecting a growth of about 18%[136]. - Revenue from Cibinqo for atopic dermatitis increased to $42 million in Q1 2024, compared to $16 million in Q1 2023, showing a significant growth of 163%[136]. - Total royalty revenues increased to $263 million in Q1 2024 from $204 million in Q1 2023, representing a growth of approximately 29%[136].