Pfizer on Tuesday (Oct 31) reported its first quarterly loss since 2019, as demand fell for its Covid products and it recorded a hefty charge mainly from the US government returning millions of doses of its antiviral treatment Paxlovid.

The company recorded a US$5.6 billion charge in the third quarter related to Paxlovid and vaccine Comirnaty, most of which was disclosed earlier this month.

Pfizer also said the experimental messenger-RNA influenza vaccine it was developing met both its primary goals in a late-stage study in 18- to 64-year olds. It said the vaccine hit secondary immunogenicity goals for influenza A strains, but not B strains of the virus.

The company, also facing looming patent loss on many top-selling drugs, has responded by investing in research and acquisitions such as the US$43-billion deal for cancer-therapy specialist Seagen to bolster its product portfolio.

Sales of the Covid-19 pill and the vaccine it makes with German partner BioNTech had boosted Pfizer’s revenue to record levels in the last two years. However, annual vaccination rates have dropped sharply and demand for treatments has dipped as population-wide immunity has increased.

Paxlovid sales slumped 97 per cent in the third quarter to US$202 million, while vaccine revenue came in at US$1.31 billion, down from US$4.4 billion a year earlier.

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Analysts had expected sales of US$1.44 billion for the vaccine and US$618.20 million for Paxlovid, according to LSEG data.

With Covid products missing estimates, there is additional pressure in the fourth quarter for Pfizer to meet its annual sales guidance, said BMO Capital analyst Evan Seigerman.

Pfizer, which announced a US$3.5 billion cost-cutting programme earlier this month, slashed US$9 billion off its 2023 sales forecast after agreeing to take back nearly 8 million Paxlovid courses from the US government.

Meanwhile, the company reaffirmed its full-year sales and profit forecast given earlier this month.

Sales of its recently launched respiratory syncytial virus (RSV) vaccine, Abrysvo, came in at US$375 million for the quarter.

Pfizer posted a loss of 42 US cents per share for the third quarter. It had reported a profit of US$1.51 per share in the year-ago quarter.

Overall revenue was US$13.23 billion, compared with US$22.64 billion a year earlier. REUTERS