01—Abstract
Summary
Summary of the 10-K filed February 24, 2022. Cited figures are marked; the original filing is the authoritative source.
Pfizer Inc. reported robust financial performance for the fiscal year ended December 31, 2021, driven significantly by the remarkable success of its COVID-19 vaccine, Comirnaty, which accounted for a substantial portion of the company's $81.3 billiona in total revenues.
This surge in revenue, a 95%b increase year-over-year, also saw a significant boost in operational cash flow and diluted earnings per share. The company has strategically focused on its innovative medicines and vaccines portfolio, with recent business development activities including acquisitions and collaborations aimed at strengthening its pipeline in areas like immuno-oncology and inflammatory diseases.
Pfizer's operational structure was refined into two segments: Biopharma and Pfizer CentreOne (PC1), with Biopharma being the sole reportable segment. The company continues to prioritize scientific advancement and patient access, while also navigating a complex regulatory and pricing environment across its global operations.
02—Key points
Key Highlights
- Total revenues reached $81.3 billion, a 95% increase from 2020, largely driven by the COVID-19 vaccine, Comirnaty.
- Net income attributable to Pfizer Inc. common shareholders was $21.98 billion, a substantial increase from $9.16 billion in 2020.
- Diluted EPS was $3.85, significantly up from $1.63 in the prior year.
- The company completed significant business development activities in 2021, including collaborations with Arvinas, Biohaven, and Beam, and the acquisition of Trillium, to enhance its pipeline.
- Pfizer reorganized its commercial operations into two segments: Biopharma (reportable segment) and Pfizer CentreOne (PC1).
- Comirnaty (COVID-19 vaccine) accounted for 45% of total revenues ($36.8 billion) in 2021.
- The company maintained strong operating cash flow, generating $32.6 billion in 2021.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Pfizer Inc kept $0.27.
- Revenue$81.29B100.0%
- Cost of revenue−$30.82B37.9%
- Gross profit$50.47B62.1%
- Operating costs−$28.05B34.5%
- Operating income$22.41B27.6%
- Interest, other & tax−$435.0M0.5%
- Net income$21.98B27.0%
Where FY2021 revenue went
$81.29B- Cost of revenue: $30.82B, 38% of revenue
- Net income: $21.98B, 27% of revenue
- Other operating costs: $15.35B, 19% of revenue
- SG&A: $12.70B, 16% of revenue
- Interest, other & tax: $435.0M, 0.5% of revenue
Kept 27% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 24, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $81.29B$41.65B | +95.2% |
| Cost of Revenue | $30.82B$8.48B | +263.3% |
| Gross Profit | $50.47B$33.17B | +52.2% |
| SG&A Expenses | $12.70B$11.60B | +9.5% |
| Operating Income | $22.41B$6.63B | +238.1% |
| Interest Expense | $1.29B$1.45B | −10.9% |
| Net Income | $21.98B$9.16B | +140.0% |
| EPS (Basic) | $3.92$1.65 | +137.6% |
| EPS (Diluted) | $3.85$1.63 | +136.2% |
| Shares Outstanding (Basic) | 5.60B5.55B | +0.8% |
| Shares Outstanding (Diluted) | 5.71B5.63B | +1.3% |
05—Questions
Frequently Asked Questions
What was Pfizer's primary revenue driver in 2021?
Pfizer's primary revenue driver in 2021 was its COVID-19 vaccine, Comirnaty (BNT162b2), which generated $36.8 billion in revenue and represented 45% of the company's total revenue for the year.
How did Pfizer's business development activities shape its strategy in 2021?
In 2021, Pfizer actively pursued strategic growth through business development. Key activities included a global collaboration with Arvinas for ARV-471 (a breast cancer treatment), a collaboration with Biohaven to commercialize migraine treatments outside the U.S., the acquisition of Trillium (an immuno-oncology company), and a research collaboration with Beam for rare genetic diseases. These moves underscore Pfizer's commitment to advancing its pipeline and expanding its therapeutic reach.
What is Pfizer's current operating segment structure, and how does it impact reporting?
As of the fourth quarter of 2021, Pfizer reorganized its commercial operations into two segments: Biopharma and Pfizer CentreOne (PC1). Biopharma is its primary innovative science-based biopharmaceutical business and is the sole reportable segment. PC1 is its global contract development and manufacturing organization. This structure reflects Pfizer's strategy to focus on its innovative medicines and vaccines.
What are the key risks identified by Pfizer in its 2021 10-K filing?
Pfizer identified several key risks, including managed care trends leading to pricing pressures, competition from generic and biosimilar products, concentration of revenue from a few key products, research and development risks (high costs, long timelines, potential failures), global operations risks (currency fluctuations, geopolitical events), product manufacturing and sales/marketing risks, intellectual property protection challenges, and cybersecurity threats. The impact of the COVID-19 pandemic also continued to be a significant risk factor.
06—Continue