Pfizer Growth Set to Stop Covid-19 Product Sales Prospects Unchanged

Pfizer maintains its prospect of annual sales of its Covid-19 vaccine and treatment, and disappoints investors looking for the products to continue to grow.

By mid-April, Pfizer said it had received $ 32 billion in 2022 contracts for the shot, Comirnaty, and $ 22 billion for its Covid pill, Paxlovid, the same figures it released three months ago. Wall Street analysts had estimated about $ 34 billion in annual sales from Comirnaty, which the company makes in partnership with BioNTech SE, and $ 27 billion in Paxlovid sales.

Shares fluctuated early Tuesday and did not change much at 9:35 a.m. in New York. By the close of Monday, they had fallen 18% since the beginning of the year, making the broader sector perform less well. BioNTech’s US depository receipts, which split Comirnaty’s profits with Pfizer, rose 1.2%. The rival fax maker Moderna Inc. fell 0.3%.

The New York-based drugmaker also left its forecast for full-year total revenue from $ 98 billion to $ 102 billion. While investors hope the market for Covid fighting products will continue to expand, Pfizer’s shot and pill account for more than half of that forecast, as well as more than half of its quarterly revenue.

Pfizer generated $ 25.7 billion in sales in the first quarter, $ 13.2 billion of which came from Comirnaty, beating Wall Street’s $ 10.6 billion estimate. More than 80% of the shot’s sales came from outside the US

While Pfizer has dominated the global coronavirus vaccine market, concern remains that demand is declining due to oversupply. Last month, Johnson & Johnson scored their own Covid vaccine forecast, citing a worldwide surplus of shots.

Paxlovid sold $ 1.5 billion in the quarter, missing analysts’ estimate of $ 2.4 billion, with the vast majority of revenue coming from the US Pfizer said it has produced 8 million Paxlovid courses to date and the entire offering of the treatment sent.

Growth perspective

Management is likely to have questions about the conference call regarding its unchanged guidance for selling the Covid products, which investors have expected to stimulate additional growth. The forecast could “signal a delay in any kind of Covid-19 advantage,” making investors feel “cautious,” BMO Capital Markets analyst Evan David Seigerman said in a note.

Pfizer leadership will aim to address these fears during the investor call, noting that they are seeking to further expand the market for Comirnaty and Paxlovid in certain populations. Pfizer said it plans to launch a new study of the drug in patients with compromised immune systems in the second half of 2022. These patients have a harder time clearing up infections, and the study will seek to optimize treatment duration. .

The drugmaker also said it expects to submit data to U.S. regulators from a study of its Covid vaccine in children aged 6 months to 4 years in late May or early June. The trial received significant delays, as Pfizer decided to evaluate a three-dose regimen instead of the typical two-dose regimen after the omicron variant affected its potency.

Pfizer said it expects advisory committees of the Food and Drug Administration and the Centers for Disease Control and Prevention will meet shortly after it submits the data to consider the application.

“Overall, we expect that the recent trends in expanding access, such as requests received from governments as it mutates the virus and causes peaks in infections around the world, will result in increased orders in the coming months,” said Chief Executive Officer Albert Bourla in prepared remarks.

Pfizer still sees sustainable Covid-19 revenues that will boost growth from 2025 to 2030, according to slides released ahead of the first-quarter revenue call.

Accounting shift

Excluding Covid combat products, Pfizer’s pharmaceutical revenue grew 2% year-on-year in the first quarter to about $ 11 billion.

Earnings for the first quarter were $ 1.62 per share, beating the average expectation of analysts of $ 1.55. At the request of the US Securities and Exchange Commission, Pfizer has changed its accounting for adjusted income. The company now includes in the figure expenses related to milestone payments on partnerships and licensing agreements. Due to the same accounting change, Pfizer reduced its adjusted earnings forecast range in 2022 by 10 cents to $ 6.25 to $ 6.45 per share.

– With the help of Madison Muller.

Pfizer Growth Set to Stop Covid-19 Product Sales Prospects Unchanged

Source link Pfizer Growth Set to Stop Covid-19 Product Sales Prospects Unchanged

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