Pfizer Inc. on Tuesday swung to a wider-than-expected third-quarter loss amid weakness in COVID products but affirmed its recently reduced full-year outlook.
The pharmaceutical giant
PFE,
-2.73%
reported a net loss of $2.38 billion, or 42 cents a share, from net income of $8.61 billion, or $1.51 a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss of 17 cents was wider than the FactSet loss consensus of 8 cents. Revenue sank 41.5% to $13.23 billion, below the FactSet consensus of $13.34 billion.
The company affirmed its 2023 outlook for adjusted earnings per share of $1.45 to $1.65 and for revenue of $58 billion to $61 billion. “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,” Chief Executive Albert Bourla said in a statement.
The results come just over two weeks after what some analysts dubbed Pfizer’s “fright night” — a late-day announcement on Friday, Oct. 13, that trimmed $9 billion from the company’s full-year sales outlook due to lower-than-expected revenues from the company’s COVID vaccine Comirnaty and antiviral Paxlovid. The company simultaneously unveiled a cost-cutting program designed to save at least $3.5 billion. The lackluster demand for COVID products led Pfizer to record a $5.6 billion noncash charge to the cost of sales in the third quarter.
Excluding COVID products, revenues grew 10% operationally from a year earlier, Pfizer said.
Analysts have been looking for Pfizer to shift the narrative away from the bad COVID news with updates on new product launches and important pipeline developments. Pfizer CEO Albert Bourla said at the start of this year that the company was entering “the most important 18 months in the history of Pfizer,” because it was aiming to launch 19 new products and label expansions that could generate $20 billion in revenues by 2030. The company has now completed 13 of the 19 launches originally identified, according to Bourla’s prepared remarks for the company’s call with analysts Tuesday morning, with four other products approved and preparing for launch.
Pfizer’s newly launched vaccine for respiratory syncytial virus, Abrysvo, generated $375 million in sales in the third quarter. The migraine treatment Nurtec ODT/Vydura and the sickle-cell-disease treatment Oxbryta, both acquired late last year, together contributed $318 million in global sales, Pfizer said.
The drugmaker also announced Tuesday that its investigational mRNA flu vaccine met its primary goals in a late-stage trial in people age 18 to 64. Safety of the experimental vaccine was similar to the standard flu vaccine, Pfizer said. “This represents the first and only demonstration of efficacy and superiority for an mRNA-based flu vaccine candidate,” Pfizer chief scientific officer Mikael Dolsten said in remarks prepared for the call with analysts.
Pfizer’s acquisition of Seagen Inc.
SGEN,
-0.13%
is still expected to close later this year or early next year, according to Bourla’s prepared remarks.
Analysts are expecting another development in the fourth quarter that could have big implications for the stock: Phase 2 trial topline results for danuglipron, Pfizer’s investigational obesity pill.
Pfizer shares fell about 1% in early trading Tuesday and have dropped more than 40% in the year to date, while the S&P 500
SPX
has gained 8.4%.
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