USA – In its Q3 2024 earnings report, Pfizer announced a significant 31% revenue increase compared to the same period last year, totaling US $17.7 billion.
The jump was largely fueled by robust sales of Covid-19 treatments Paxlovid and Comirnaty, which contributed US $2.7 billion and US $1.4 billion, respectively, accounting for nearly half of Pfizer’s year-over-year revenue gains.
Pfizer CFO David Denton pointed out that the sales were supported by a recent wave of Covid-19, as well as strategic cost-reduction efforts across the company.
While the positive earnings report didn’t notably impact Pfizer’s share price, trading volume surged to levels unseen since Pfizer’s acquisition of Seagen in December 2023. Currently, Pfizer’s market cap stands at US $161 billion.
The company has faced external pressure this quarter from activist hedge fund Starboard Value, which acquired a US $1 billion stake in Pfizer.
Starboard has criticized Pfizer’s capital allocation and accused the management of “coercive conduct” toward former leadership.
In response, Pfizer CEO Albert Bourla acknowledged that while he shares Starboard’s concerns over shareholder returns, he disagrees with their stance on Pfizer’s recent acquisitions, noting, “Our deals with Seagen and BioNTech have been transformational for Pfizer.”
Strategic shifts and revised financial guidance
In response to the evolving market landscape and Starboard’s influence, Pfizer has introduced several structural changes in 2024, including separating U.S. and international operations and restructuring management.
Bourla highlighted these adjustments, reinforcing Pfizer’s commitment to long-term growth.
Reflecting optimism for the year ahead, Pfizer has raised its 2024 revenue projections to between US $61 billion and $64 billion—an increase of US $1.5 billion from prior estimates—with anticipated full-year growth of 9% to 11% over 2023.
Growth across key drugs and strategic acquisitions
Apart from Covid-19 therapies, Pfizer’s acquisition of Seagen contributed US $854 million to Q3 revenues.
Other high-performing products included Eliquis (9% growth), Xtandi (28% growth), Vydura (45% growth), and the Vyndagel family (63% growth), underscoring the company’s portfolio strength.
However, revenues for some drugs, such as Xeljanz and Ibrance, saw declines due to various market factors, including increased competition and pricing adjustments.
For Xeljanz, sales dropped 35% following changes to its label, price reductions, and the expiration of exclusivity in Canada, while Ibrance faced a 12% revenue dip due to competitive and pricing pressures internationally.
Positive outlook amid strategic growth
Looking forward, Pfizer’s solid Q3 performance, bolstered by cost-efficiency measures and high demand for key products, sets a promising trajectory for the company’s financial health.
“Despite challenges, our commitment to growth through strategic acquisitions and innovative products remains firm,” stated Bourla, underlining Pfizer’s ongoing transformation and commitment to shareholder value in a dynamic market.
