Pfizer on Tuesday raised its full-year profit forecast for the second quarter in a row as robust demand for its blockbuster blood thinner helped it post third-quarter earnings above expectations.
The drugmaker, which stuck to its full-year revenue forecast for the year, has benefited from chief executive Albert Bourla’s cost-cutting initiatives, new product launches and stable demand for established drugs that have helped offset declining Covid-related sales.
Pfizer’s blockbuster Covid products – the Comirnaty vaccine and Paxlovid antiviral – are now generating only a fraction of their pandemic-era sales. Demand has stabilised but remains weak as global vaccination and infection rates decline.
Paxlovid sales fell 55 per cent, while those of Comirnaty were down 20 per cent in the reported quarter. Overall, Pfizer sales fell 7 per cent to $16.65 billion (€14.5 billion).
The upbeat results and outlook come as Pfizer is engaged in a public legal fight with Novo Nordisk over obesity-drug developer Metsera.
Novo Nordisk recently launched an unsolicited, higher bid for Metsera, which had already agreed to an acquisition by Pfizer. Pfizer’s September deal had valued Metsera at up to $7.3 billion (€6.36 billion).
Pfizer has filed two lawsuits against Metsera, its board and Novo Nordisk, alleging breach of contract and antitrust violations.
At an emergency hearing in one of those cases on Tuesday, a Delaware judge said there was no need for a court to grant Pfizer’s request to get involved in the bidding war for Metsera.
However, vice-chancellor Morgan Zurn of Delaware’s court of chancery scheduled a hearing on Wednesday to review the process, which has led to a $10 billion bid for Metsera from Novo Nordisk, topping Pfizer’s amended $8.1 billion offer.
Novo Nordisk has rejected Pfizer’s allegations and said it closely adhered to all of the restrictions under the Pfizer merger agreement.
In related news, Eli Lilly and Novo Nordisk plan to announce new drug pricing deals with the White House, including for their weight-loss medicines, in return for Medicare coverage of their products, it was reported on Tuesday.
Under the deal, the companies would offer the lowest dose of their respective obesity drugs at $149 per month, the report said, citing sources familiar with the matter. The agreement could be announced later this week.
Pfizer in the third quarter became the first big pharmaceutical company to sign a deal with the Trump administration to lower the price of its prescription drugs in the Medicaid programme in exchange for three years of tariff relief.
Mr Bourla said the deal will provide “greater clarity” to its business.
Sales of its blood thinner Eliquis rose 22 per cent to $2.02 billion, revenue from its heart disease drug, sold under the brand names Vyndaqel and Vyndamax, rose 7 per cent to $1.59 billion.
On an adjusted basis, Pfizer, which employs about 5,000 people at five plants in Ireland, earned 87 US cents per share in the quarter, compared with analysts’ expectations of 63 cents per share. Total sales for the quarter came in $16.65 billion, compared with analysts’ average expectation of $16.58 billion.
The company said it expects adjusted earnings of $3 to $3.15 per share, up from its previous guidance of $2.90 to $3.10. – Reuters
