Early signs of hope in rebuilding post-pandemic era, Pfizer (PFE.US) raises full-year guidance
July 30th (Tuesday) Pfeiffer (PFE.US) announced its Q2 2024 earnings after hours. The earnings report showed that Pfeiffer Q2 revenue was $13.28 billion, up 2.2% YoY, beating the consensus; adjusted net income was $3.4 billion, down 11% YoY; adjusted EPS was $0.60, beating the consensus and $0.67 YoY.
Although expected to decline due to the COVID-19 pandemic, operating income increased 3% YoY; revenue grew 14% YoY, excluding contributions from Comirnaty and Paxlovid.
Pfeiffer is trying to convince investors that its new drug pipeline can offset the significant decline in its COVID-19 vaccine and drug revenues, which has led to multiple management cuts to expectations. Last year, the stock price fell more than 40%.
The CFO said, "This is the first time Pfeiffer has reported revenue growth since Q4 2022 when the COVID-19 vaccine revenues peaked. Importantly, non-COVID vaccine product operating income grew 14% YoY in Q2, indicating we continue to focus on commercial execution."
Pfeiffer launched a cost-cutting plan in May, aiming to save $1.5 billion by the end of 2027. Previously, Pfeiffer disclosed that it would cut $4 billion in expenses by 2024. In the earnings call, Pfeiffer management said they expect to achieve these targets.
Pfeiffer is betting on oncology drugs to restore its growth, having acquired Seagen Inc., a company focused on oncology, for $43 billion last year. Seagen's drug revenues increased $845 million in this quarter.
Seagen's oncology drug Padcev exceeded expectations with $394 million in sales. Vyndaqel, a drug to treat rare cardiovascular diseases, is also one of the company's largest drugs, with $1.3 billion in sales, beating expectations.
Pfeiffer said earlier this month that it was developing a weight loss drug that would rival Novo Nordisk's Wegovy and others. Pfeiffer's weight loss drug is expected to enter mid-stage development this year.
Guidance
Pfeiffer currently expects adjusted EPS to be between $2.45 and $2.65 in 2024, up 30 cents from the midpoint of its previous guidance. The company also raised its full-year revenue outlook to $59.5 billion to $62.5 billion from $60.5 billion, beating consensus.