Pfizer posts surprise quarterly profit on resilient Covid products demand

PFIZER reported a surprise quarterly profit on Tuesday (Jan 30), helped by its cost-cutting measures and as the US government returned fewer courses of Covid treatment Paxlovid than it had expected.

The US drugmaker recorded a US$3.5 billion revenue reversal related to the treatment during the period for the return of about 6.5 million courses.

Pfizer had forecast a US$4.2 billion non-cash charge based on the return of around 7.9 million courses at the end of 2023.

The US drugmaker earned 10 US cents per share on an adjusted basis for the fourth quarter. Analysts on average had expected a loss of 22 US cents per share, according to LSEG data.

Investors fled Pfizer last year as pandemic worries declined and billions of dollars in Covid vaccine and treatment sales disappeared.

The exodus worsened with a setback in its experimental obesity drug, driving shares down to levels seen during the pandemic sell-off of 2020 and wiping out US$100 billion in market capitalisation in 2023.

Revenues from its Covid products, antiviral treatment Paxlovid and Covid vaccine Comirnaty, came in at US$12.5 billion for 2023, down 78 per cent from their US$57 billion peak in 2022.

Pfizer makes the Comirnaty vaccine with German partner BioNTech.

The US drugmaker is targeting a return to profitability through a US$4 billion cost-cutting programme and internal restructuring.

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With the cuts in place, it expects to grow revenue through its cancer treatments, including from its US$43 billion acquisition of cancer drugmaker Seagen, and its new RSV vaccine.

Pfizer had said in October that it expects US$1 billion in Paxlovid sales and US$11.5 billion in Comirnaty sales in 2023. REUTERS