Pfizer has reported a stronger-than-anticipated third quarter, significantly aided by its COVID-19 treatment sales, prompting the company to raise its financial outlook for the year.
Sales of Paxlovid, the pharmaceutical giant’s antiviral medication for COVID-19, surged due to an uptick in cases and a delivery to the U.S. national stockpile, resulting in revenues of $2.7 billion from this product alone, as stated by the company on Tuesday.
In addition to Paxlovid, Pfizer noted growth from various other medications, contributing to an overall revenue increase of 31%, totaling $17.7 billion for the quarter that just concluded. Adjusted earnings per share reached $1.06.
This performance exceeds analysts’ predictions, who had forecast earnings of 61 cents per share on revenue of $14.92 billion, according to data from FactSet.
Following the announcement, Pfizer’s stock saw an increase in early trading hours.
The company disclosed that it delivered a substantial one-off shipment of one million Paxlovid treatment courses to the U.S. Strategic National Stockpile during the third quarter. Additionally, sales of its COVID vaccine, Comirnaty, rose by 9%, amounting to $1.4 billion.
Pfizer also mentioned generating $854 million from products linked to Seagen, a company it acquired at the end of the previous year.
Despite this success, Pfizer has faced scrutiny from the activist investment firm Starboard Value, which has expressed concerns over the returns from a series of acquisitions made after the company benefitted from COVID-related vaccine and treatment sales.
Starboard’s CEO, Jeffrey Smith, recently communicated with Pfizer’s board, indicating the firm’s intention to collaborate positively with management to enhance shareholder value.
In terms of profitability, Pfizer’s net income surged to $4.47 billion for the third quarter, a marked improvement compared to a loss of $2.38 billion in the same period last year, which was characterized by high expenses and no U.S. sales of Paxlovid as it transitioned from mass government procurement to the commercial sector.
Pfizer now anticipates adjusted earnings for the upcoming year to be between $2.75 and $2.95 per share, reflecting a 30-cent increase at the midpoint from an earlier estimate shared in July.
For the entirety of this year, analysts project that earnings will average around $2.66 per share, as indicated by FactSet.
On Tuesday, shares of Pfizer Inc., headquartered in New York, rose by 14 cents, reaching a price of $29.