10-QPeriod: Q2 FY2021

PFIZER INC Quarterly Report for Q2 Ended Apr 4, 2021

Filed May 13, 2021For Securities:PFE

Summary

Pfizer Inc.'s first quarter 2021 results, ending April 4, 2021, demonstrate significant year-over-year revenue growth, largely driven by the BNT162b2 (Pfizer-BioNTech COVID-19 Vaccine). Total revenues surged by 45% to $14.6 billion, with the COVID-19 vaccine alone contributing $3.5 billion. Excluding the vaccine, operational revenue growth was a solid 8%, supported by strong performance in key products like Eliquis, Vyndaqel/Vyndamax, and Xeljanz, though partially offset by declines in Prevnar 13 and Ibrance. Net income attributable to Pfizer Inc. common shareholders also saw a substantial increase, reaching $4.9 billion, or $0.86 per diluted share, compared to $3.4 billion, or $0.60 per diluted share, in the prior year's first quarter. This growth reflects the strong revenue performance and improved equity security gains, despite higher operating expenses related to increased R&D for COVID-19 treatments and higher cost of sales associated with the vaccine. The company maintains a strong liquidity position, with substantial cash and short-term investments.

Financial Highlights

55 data points
Beta

Revenue

$14.52B

71.4% Gross Margin

Net Income

$4.88B

33.6% Net Margin

EPS (Diluted)

$0.86

Total Assets

$158.82B

Cash & Equivalents

$1.77B

Free Cash Flow

$3.98B

Financial Statements
Beta
Revenue$14.52B
Cost of Revenue$4.16B
Gross Profit$10.36B
SG&A Expenses$2.78B
Operating Income$4.87B
Interest Expense$336.00M
Net Income$4.88B
EPS (Basic)$0.87
EPS (Diluted)$0.86
Shares Outstanding (Basic)5.58B
Shares Outstanding (Diluted)5.66B

Key Highlights

  • 1Total revenues increased by 45% to $14.6 billion, driven significantly by the BNT162b2 (Pfizer-BioNTech COVID-19 Vaccine) which generated $3.5 billion in revenue.
  • 2Excluding the COVID-19 vaccine, Pfizer's operational revenue growth was 8%, supported by strong performance in key products such as Eliquis, Vyndaqel/Vyndamax, Xeljanz, and Inlyta.
  • 3Net income attributable to Pfizer Inc. common shareholders increased to $4.9 billion from $3.4 billion in the prior year's quarter.
  • 4Diluted EPS rose to $0.86 from $0.60 in the comparable prior-year period.
  • 5The company reported significant increases in Cost of Sales ($4.2 billion from $1.9 billion) and R&D expenses ($2.0 billion from $1.7 billion), largely due to the COVID-19 vaccine and related research.
  • 6Pfizer maintains a strong financial position with cash and cash equivalents of $1.8 billion and short-term investments of $11.9 billion.
  • 7The company continues to advance its pipeline, with several key product approvals and filings noted, including progress on its COVID-19 therapeutic oral antiviral.

Frequently Asked Questions

The primary driver of Pfizer's significant revenue growth in Q1 2021 was the BNT162b2 (Pfizer-BioNTech COVID-19 Vaccine), which generated $3.5 billion in revenue during the quarter. This product played a crucial role in the company's 45% year-over-year revenue increase.

Excluding the COVID-19 vaccine, Pfizer demonstrated solid growth. Operational revenue increased by 8%, supported by strong performances from Eliquis (up 25% operationally), Vyndaqel/Vyndamax (up 88% operationally), Xeljanz (up 18% operationally), and Inlyta (up 34% operationally). However, Prevnar 13 and Ibrance experienced declines.

Pfizer anticipates manufacturing at least 2.5 billion doses in total by the end of 2021 and at least 3 billion doses in 2022. The company forecasted approximately $26 billion in revenues in 2021 from BNT162b2, with gross margin to be split evenly with BioNTech. This forecast is subject to adjustment as new agreements are signed.

Pfizer faces ongoing legal proceedings, including patent litigation, product liability claims, and government investigations related to its business practices. While the company believes its defenses are substantial, litigation is unpredictable and could materially impact future results if adverse outcomes occur. Specifically, patent challenges for key products like Ibrance and Eliquis are ongoing, as are investigations related to generic drug practices and manufacturing quality.