Pfizer Reports Full-Year 2023 Results and Reaffirms Full-Year 2024 Financial Guidance
-- 2023 Sets Stage for Future Growth Potential: Completed Seagen
Acquisition, Creating World-Class Oncology Organization; Launched
Significant Number of New Products and Indications; and Realigned
Commercial Organization to Improve Focus, Speed and Execution
-- Full-Year 2023 Revenues of $58.5 Billion
-- Expected Decline in Comirnaty(1) and Paxlovid Revenues Drove 41%
Operational Decrease in Year-Over-Year Revenues
-- Excluding Contributions from Comirnaty(1) and Paxlovid, Revenues
Grew 7% Operationally, Driven by a Combination of New Product and
Indication Launches and In-Line Product Growth
-- Full-Year 2023 Reported(2) Diluted EPS of $0.37, Down 93%
Year-Over-Year, and Adjusted(3) Diluted EPS of $1.84, Down 72%
Year-Over-Year, Significantly Impacted by One-Time Events(4)
-- Fourth-Quarter 2023 Revenues of $14.2 Billion
-- Expected Decline in Comirnaty(1) and Paxlovid Revenues Drove 42%
Operational Decrease in Fourth-Quarter Revenues
-- Excluding Contributions from Comirnaty(1) and Paxlovid, Revenues
Grew 8% Operationally
-- Fourth-Quarter 2023 Reported(2) Diluted Loss Per Share (LPS) of $(0.60)
and Adjusted(3) Diluted EPS of $0.10, Significantly Impacted by One-Time
Events(4)
-- On Track to Deliver at Least $4 Billion in Annual Net Cost Savings by
End of 2024 from Previously Announced Cost Realignment Program
-- Reaffirms Full-Year 2024 Guidance(5) Provided on December 13, 2023, of
Revenues of $58.5 to $61.5 Billion and Adjusted(3) Diluted EPS of $2.05
to $2.25
NEW YORK--(BUSINESS WIRE)--January 30, 2024--
Pfizer Inc. (NYSE: PFE) reported financial results for fourth quarter and full-year 2023 and reaffirmed its 2024 financial guidance(5) provided on December 13, 2023.
The fourth-quarter 2023 earnings presentation and accompanying prepared remarks from management as well as the quarterly update to Pfizer’s R&D pipeline can be found at .
EXECUTIVE COMMENTARY
Dr. Albert Bourla, Chairman and Chief Executive Officer, stated: “We are encouraged by the strong performance of our non-COVID products in the fourth quarter of 2023, including significant contributions from new launches and robust year-over-year growth for several key in-line brands. In 2023, Pfizer received a record number of nine new molecular entity approvals by the U.S. Food and Drug Administration (FDA)–medicines and vaccines that are expected to favorably impact Pfizer’s performance in the coming years.
“In addition, we completed the acquisition of Seagen in December 2023, a critical step toward our goal to achieve world-class Oncology leadership. With the combined strength of Pfizer’s and Seagen’s talent, portfolios and platforms, we believe we have the potential to transform outcomes by delivering cancer medicines that help patients live better and longer lives. We look forward to sharing the vision of the new Pfizer Oncology Division at our announced Oncology Innovation Day on Thursday, February 29.
“We are entering 2024 with a solid foundation. We believe our commitment to execution, maximizing the performance of our new products, and delivering the next wave of pipeline innovation will fuel Pfizer’s growth and make a difference in the lives of patients everywhere.”
David Denton, Chief Financial Officer and Executive Vice President, stated: “We are pleased with the strong 8% operational revenue growth of Pfizer’s non-COVID products in the fourth quarter of 2023, achieving our full-year 2023 non-COVID operational revenue growth target of 6% to 8%. In addition, we are on track to deliver at least $4.0 billion in annual net cost savings by the end of 2024 from our cost realignment program. We are prepared to execute our commercial strategy to drive continued growth from our newly launched and acquired products, and to deliver on our targeted cost savings that we expect will expand our operating margins in 2024 and beyond.”
Results for fourth-quarter and full-year 2023 and 2022(6) are summarized below.
OVERALL RESULTS
($ in millions,
except per share
amounts) Fourth-Quarter Full-Year
-------------------------- ---------------------------
2023 2022 Change 2023 2022 Change
-------- -------- ------ -------- --------- ------
Revenues $ 14,249 $ 24,290 (41%) $ 58,496 $ 100,330 (42%)
Reported(2) Net
Income/(Loss) (3,369) 4,995 * 2,119 31,372 (93%)
Reported(2) Diluted
EPS/(LPS) (0.60) 0.87 * 0.37 5.47 (93%)
Adjusted(3) Income 593 6,551 (91%) 10,501 37,717 (72%)
Adjusted(3) Diluted
EPS 0.10 1.14 (91%) 1.84 6.58 (72%)
* Indicates
calculation not
meaningful.
REVENUES
($ in millions) Fourth-Quarter Full-Year
-------------------------------- ---------------------------------
2023 2022 % Change 2023 2022 % Change
-------- -------- ------------ -------- --------- ------------
Total Oper. Total Oper.
-------- -------- ----- ----- -------- --------- ----- -----
Global
Biopharmaceuticals
Business
(Biopharma) $ 13,867 $ 23,922 (42%) (42%) $ 57,186 $ 98,988 (42%) (41%)
-------- -------- ----- ----- -------- --------- ----- -----
Primary Care 6,986 17,348 (60%) (60%) 30,589 73,023 (58%) (57%)
Specialty Care 3,949 3,566 11% 11% 14,970 13,833 8% 11%
Oncology 2,932 3,007 (3%) (2%) 11,627 12,132 (4%) (3%)
-------- -------- ----- ----- -------- --------- ----- -----
Business Innovation $ 382 $ 368 4% 2% $ 1,310 $ 1,342 (2%) (2%)
-------- -------- ----- ----- -------- --------- ----- -----
TOTAL REVENUES $ 14,249 $ 24,290 (41%) (42%) $ 58,496 $ 100,330 (42%) (41%)
======== ======== ===== ===== ======== ========= ===== =====
In the first quarter of 2023, Pfizer established an operating segment, Business Innovation, that includes Pfizer CentreOne (PC1), the company’s global contract development and manufacturing organization and a leading supplier of specialty active pharmaceutical ingredients; and Pfizer Ignite, an offering that provides strategic guidance and end-to-end R&D services to select innovative biotech companies that align with Pfizer’s R&D focus areas. The prior period has been revised to conform to the current period presentation.
Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts. References to operational variances pertain to period-over-period changes that exclude the impact of foreign exchange rates(7) .
CAPITAL ALLOCATION
During full-year 2023, Pfizer deployed its capital in a variety of ways, which primarily include the following two categories:
-- Reinvesting capital into initiatives intended to enhance the future
growth prospects of the company, including:
-- $10.7 billion invested in internal research and development
projects, and
-- Approximately $43.8 billion invested in completed business
development transactions, net of cash acquired, including
approximately $43 billion for the acquisition of Seagen Inc.
-- Returning capital directly to shareholders through $9.2 billion of cash
dividends, or $1.64 per share of common stock.
No share repurchases were completed in 2023. As of January 30, 2024, Pfizer’s remaining share repurchase authorization is $3.3 billion. Current financial guidance does not anticipate any share repurchases in 2024.
For the fourth quarter of 2023, basic weighted-average shares outstanding of 5,647 million were used to calculate Reported(2) LPS and diluted weighted-average shares outstanding of 5,692 million were used to calculate Adjusted(3) diluted EPS.
2024 FINANCIAL GUIDANCE(5)
Pfizer expects full-year 2024 revenues(2) to be in the range of $58.5 to $61.5 billion, which includes approximately $8 billion in anticipated revenues for Comirnaty(1) and Paxlovid (approximately $5 billion and $3 billion, respectively), approximately $3.1 billion in anticipated revenues from Seagen and approximately $1 billion related to the reclassification of Pfizer’s royalty income from Other (Income)/Deductions into the Revenue line.
Including the contribution from Seagen and excluding revenues from Comirnaty(1) and Paxlovid, Pfizer expects to achieve full-year 2024 operational revenue growth of 8% to 10% compared to 2023 revenues. Excluding revenues from Comirnaty(1) and Paxlovid and the expected contribution from Seagen, Pfizer expects to achieve full-year 2024 operational revenue growth of 3% to 5% compared to 2023 revenues. While the company will begin reporting royalty income in the revenue line in 2024, for growth rate purposes, the company has included royalty income in revenues in both 2023 and 2024. Consequently, there is no operational revenue growth attributable to the reclassification of royalty income.