In this article, Pfizer reported third-quarter revenue and adjusted profit that exceeded expectations due to strong sales of its Covid vaccine and antiviral pill Paxlovid. The company raised its full-year outlook, expecting adjusted earnings per share of $2.75 to $2.95 and revenue between $61 billion and $64 billion. The results were seen as a positive development for Pfizer CEO Albert Bourla amidst pressure from activist investor Starboard Value, who holds a significant stake in the company. Despite the positive results, Pfizer’s shares fell over 2% on Tuesday.
During the third quarter, Pfizer reported a net income of $4.47 billion and earnings per share of 78 cents, a significant improvement from the same period last year. The company’s revenue for the quarter reached $17.7 billion, marking a 31% increase from the previous year.
Pfizer is undergoing cost-cutting measures to recover from the decline in its Covid business and share price. The company’s market cap currently stands at around $163 billion, with its shares trading at half of their pandemic-era peak. Starboard Value has criticized Pfizer for not maximizing the potential of its Covid products, leading to a loss in market value. The investor is calling for significant changes at Pfizer to improve its performance.
Pfizer has engaged with Starboard Value to address some of the concerns raised while maintaining differing views on certain issues. The company highlighted recent changes in its operations, including new executive appointments and business restructuring. Pfizer remains committed to delivering cost savings and shareholder returns through its strategic initiatives.
The strong performance in the third quarter was driven by increased demand for Pfizer’s Covid products, particularly Paxlovid, which saw a substantial rise in sales. The company’s Covid vaccine also contributed to revenue growth, supported by earlier approval of an updated version. Additionally, Pfizer’s acquisition of Seagen last year boosted revenue from cancer products, including drugs for bladder cancer and lymphomas.
Sales of Pfizer’s Vyndaqel drugs and blood thinner Eliquis also contributed to revenue growth in the third quarter. The company’s focus on expanding its product portfolio and driving sales across different therapeutic areas has been a key strategy for growth. Pfizer’s recent approval for its RSV shot for adults at increased risk is expected to further enhance its revenue in the coming quarters.
