Core Viewpoint - Pfizer's Q1 earnings report shows a decline in overall revenue despite cost-cutting measures and better-than-expected profits, primarily due to setbacks in its weight-loss drug development and decreased revenue from COVID-related products [1][2]. Group 1: Financial Performance - Pfizer reported Q1 revenue of $13.72 billion, an 8% year-over-year decline, falling short of the analyst consensus of $13.91 billion [1]. - The company's net profit for Q1 was $2.97 billion, or $0.52 per share, compared to $3.12 billion, or $0.55 per share, in the same period last year; adjusted EPS was $0.92, exceeding the average analyst estimate of $0.66 [1]. - Pfizer maintains its full-year 2025 revenue outlook between $61 billion and $64 billion, with adjusted EPS expectations of $2.80 to $3.00, despite external pressures from potential tariffs on imported drugs [4]. Group 2: Cost-Cutting Initiatives - Following the failure of its weight-loss drug Danuglipron, Pfizer is expanding its cost-cutting plans, aiming for an additional $1.2 billion in savings by the end of 2027, primarily from reductions in sales, information, and administrative expenses [2]. - The company previously announced a cost-cutting plan targeting $4.5 billion in net savings by the end of 2025, with an additional $500 million expected to be saved through research and organizational restructuring by the end of 2026 [2][3]. - Pfizer's independent multi-year cost reduction plan aims to save $1.5 billion by the end of 2027, helping the company recover from the rapid decline in COVID-related business and stock price [3]. Group 3: Market Outlook and Challenges - Pfizer's decision to abandon the development of Danuglipron has led to adjustments in market forecasts for weight-loss drugs, with Goldman Sachs removing Pfizer's projections for the drug from their models, previously estimating sales of $1.2 billion and $1.9 billion for 2030 and 2035, respectively [1]. - The company anticipates that the Inflation Reduction Act will reduce its sales by $1 billion, with a projected growth rate decrease of approximately 1.6% compared to 2024 [4]. - CEO Albert Bourla expressed confidence in the company's ability to adapt to uncertain external conditions, emphasizing the inherent strengths of its business [4].