Pfizer Reports Third-Quarter 2023 Results
-- Third-Quarter 2023 Revenues of $13.2 Billion
-- Expected Decline in Paxlovid and Comirnaty(1) Revenues Drove 41%
Operational Decrease in Third-Quarter 2023 Revenues
-- Revenues for Pfizer's Non-COVID Products Grew 10% Operationally
-- Third-Quarter 2023 Reported(2) Diluted Loss Per Share (LPS) of $(0.42)
and Adjusted(3) Diluted LPS of $(0.17), Significantly Impacted by $5.6
Billion of Non-Cash Inventory Write-Offs and Other Charges, Which
Unfavorably Impacted Reported(2) and Adjusted(3) Diluted LPS by $0.84
-- Reaffirms Full-Year 2023 Guidance(4) Provided on October 13, 2023, of
Revenues of $58.0 to $61.0 Billion and Adjusted(3) Diluted EPS of $1.45
to $1.65, and Provides All Guidance Components
-- Reaffirms Full-Year 2023 Non-COVID Operational Revenue Growth
Expectation of 6% to 8% vs. 2022
-- Successful Execution of New Product and Indication Launches, including
Abrysvo (Older Adult) and Prevnar 20 (Pediatric), and In-Line Product
Growth Contribute to Strong Non-COVID Operational Revenue Growth
-- Launched Enterprise-Wide Cost Realignment Program Expected to Deliver
Annual Net Cost Savings of at Least $3.5 Billion, of Which Approximately
$1.0 Billion is Expected to be Realized in 2023 and at Least an
Additional $2.5 Billion is Expected to be Realized in 2024 (Compared to
Midpoint of SI&A and R&D Expense Guidance Provided on August 1, 2023)
NEW YORK--(BUSINESS WIRE)--October 31, 2023--
Pfizer Inc. (NYSE: PFE) reported financial results for the third quarter of 2023. The company reaffirms its 2023 revenue guidance(4) range of $58.0 to $61.0 billion and its outlook for Adjusted(3) diluted EPS of $1.45 to $1.65 provided on October 13, 2023.
The third-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 Pfizer’s non-COVID products in the third quarter of 2023, including significant contributions from new launches and robust year-over-year growth for several key in-line brands. We also have achieved several recent milestones that speak to the underlying strength and breadth of our scientific pipeline, including the U.S. and European Commission (EC) approval and launch of Abrysvo in pregnant individuals, and EC approval and launch of Abrysvo in older adults; the U.S. approval and launch of Elrexfio; U.S. approvals of Penbraya, Velsipity and of the Braftovi+Mektovi combination in BRAF-mutated metastatic non-small cell lung cancer; and EC approval of Litfulo.
“In addition, we continue to make progress toward our proposed acquisition of Seagen, a global leader in discovering, developing and commercializing transformative oncology medicines that we believe can help us conquer cancer in the coming years–and earlier this month, we received unconditional antitrust clearance from the EC on the proposed acquisition, a decision we believe confirms our view that the transaction is pro-competitive, reflective of our complementary portfolios and good for patients.
“With a significant uncertainty removed by our recently announced amended Paxlovid supply agreement with the U.S. government, our expectation of additional clarification on global vaccination and treatment rates by the end of the year, and the breakthroughs continuing to emerge from our pipeline, we look forward to concluding 2023 with positive momentum that showcases Pfizer’s long-term growth potential.”
David Denton, Chief Financial Officer and Executive Vice President, stated: “We are extremely pleased by the strong 10% operational revenue growth of Pfizer’s non-COVID products in the third quarter of 2023. With expected contributions from our new product launches, this puts us squarely on track to meet our full-year non-COVID operational revenue growth target of 6% to 8%. In addition, we launched our cost realignment program, from which we expect to achieve at least $3.5 billion of net cost savings by the end of 2024. Combined with the momentum of our non-COVID product portfolio and U.S. commercialization of Paxlovid, we expect the program to yield improved operating margins this year and help drive Pfizer’s growth through the end of the decade and beyond.”
Results for the third quarter of 2023 and 2022(5) are summarized below.
OVERALL RESULTS
($ in millions,
except per share
amounts) Third-Quarter Nine Months
------------------------- ------------------------
2023 2022 Change 2023 2022 Change
-------- ------- ------ ------- ------- ------
Revenues $ 13,232 $22,638 (42%) $44,247 $76,040 (42%)
Reported(2) Net
Income/(Loss) (2,382) 8,608 * 5,488 26,378 (79%)
Reported(2)
Diluted
EPS/(LPS) (0.42) 1.51 * 0.96 4.60 (79%)
Adjusted(3)
Income/(Loss) (968) 10,172 * 9,908 31,165 (68%)
Adjusted(3)
Diluted
EPS/(LPS) (0.17) 1.78 * 1.73 5.44 (68%)
* Indicates calculation not meaningful.
REVENUES
($ in millions) Third-Quarter Nine Months
------------------------------ ------------------------------
2023 2022 % Change 2023 2022 % Change
------- ------- ------------ ------- ------- ------------
Total Oper. Total Oper.
------ ------ ----- ----- ------ ------ ----- -----
Global
Biopharmaceuticals
Business
(Biopharma) $12,930 $22,319 (42%) (42%) $43,320 $75,066 (42%) (41%)
------ ------ ----- ----- ------ ------ ----- -----
Primary Care 6,287 15,846 (60%) (60%) 23,602 55,676 (58%) (56%)
Specialty Care 3,757 3,404 10% 12% 11,021 10,267 7% 11%
Oncology 2,885 3,070 (6%) (5%) 8,696 9,124 (5%) (3%)
------ ------ ----- ----- ------ ------ ----- -----
Business Innovation $ 302 $ 319 (5%) (7%) $ 928 $ 974 (5%) (4%)
------ ------ ----- ----- ------ ------ ----- -----
TOTAL REVENUES $13,232 $22,638 (42%) (41%) $44,247 $76,040 (42%) (40%)
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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, a recently launched 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(6) .
CAPITAL ALLOCATION
During the first nine months of 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 $7.9 billion invested in
internal research and development projects, and
-- Returning capital directly to shareholders through $6.9 billion of cash
dividends, or $1.23 per share of common stock.
No share repurchases have been completed to date in 2023. As of October 31, 2023, Pfizer’s remaining share repurchase authorization is $3.3 billion. Current financial guidance does not anticipate any share repurchases in 2023.
For the third quarter of 2023, basic weighted-average shares outstanding of 5,646 million were used to calculate Reported(2) and Adjusted(3) diluted LPS.
2023 FINANCIAL GUIDANCE(4)
Pfizer reaffirms its full-year 2023 guidance(4) for Revenues, Adjusted(3) diluted EPS and Effective Tax Rate on Adjusted(3) Income provided on October 13, 2023, which is presented below. This guidance incorporates the impacts of certain one-time items, noted below.
2023 Financial One-Time Items Included
Guidance(4) in Guidance(a)
------------------------- ------------------------- ------------------------
Revenues* $58.0 to $61.0 billion $(4.2) billion
Operational(6) Decline
vs. Prior Year (41%) to (38%)
Decline vs. Prior Year (42%) to (39%)
------------------------- ------------------------- ------------------------
Non-cash Inventory Write-offs(a) $5.6 billion
---------------------------------------------------- ------------------------
Adjusted(3) Diluted EPS* $1.45 to $1.65 $(1.47)
Operational(6) Decline (75%) to (72%)
vs. Prior Year
Decline vs. Prior Year (78%) to (75%)
(a) One-time items include a non-cash revenue reversal of approximately
$4.2 billion related to the return of an estimated 7.9 million
treatment courses of U.S. government EUA-labeled Paxlovid expected in
the fourth quarter of 2023 and a non-cash charge of $5.6 billion
recorded to Cost of Sales in the third quarter of 2023 for COVID