10-QPeriod: Q3 FY2021

PFIZER INC Quarterly Report for Q3 Ended Jul 4, 2021

Filed August 12, 2021For Securities:PFE

Summary

Pfizer Inc. reported strong revenue growth for the second quarter and first six months of 2021, largely driven by significant contributions from the Pfizer-BioNTech COVID-19 vaccine (BNT162b2). Total revenues for the second quarter of 2021 surged by 92% year-over-year to $19.0 billion, and for the first six months by 68% to $33.6 billion. The company's operational performance, excluding the impact of foreign exchange, also showed substantial improvement, with revenues increasing by 86% in the second quarter and 64% in the first six months. This growth was primarily fueled by the BNT162b2 vaccine, which generated $7.8 billion in the second quarter and $11.3 billion in the first six months. Excluding the vaccine, operational revenue growth remained robust at 10% for the quarter and 9% for the year-to-date, demonstrating continued strength in key products like Eliquis, Vyndaqel/Vyndamax, and Inlyta, alongside growth in biosimilars and the Hospital segment. Net income attributable to Pfizer Inc. common shareholders was $5.6 billion for the second quarter ($0.99 per diluted share) and $10.4 billion for the first six months ($1.87 per diluted share). The company maintained a healthy balance sheet with total assets of $170 billion and total equity of $70.3 billion as of July 4, 2021. Pfizer also highlighted ongoing business development initiatives, including a significant collaboration with Arvinas, Inc. and the acquisition of Amplyx Pharmaceuticals, Inc., underscoring its commitment to strategic growth in innovative medicines and vaccines.

Financial Highlights

55 data points
Beta

Revenue

$18.90B

63.0% Gross Margin

Net Income

$5.56B

29.4% Net Margin

EPS (Diluted)

$0.98

Total Assets

$169.92B

Cash & Equivalents

$2.37B

Free Cash Flow

$10.76B

Financial Statements
Beta
Revenue$18.90B
Cost of Revenue$7.00B
Gross Profit$11.90B
SG&A Expenses$2.92B
Operating Income$10.41B
Interest Expense$316.00M
Net Income$5.56B
EPS (Basic)$0.99
EPS (Diluted)$0.98
Shares Outstanding (Basic)5.60B
Shares Outstanding (Diluted)5.68B

Key Highlights

  • 1Second quarter 2021 revenues increased 92% to $19.0 billion, with the Pfizer-BioNTech COVID-19 vaccine (BNT162b2) contributing $7.8 billion.
  • 2First six months 2021 revenues increased 68% to $33.6 billion, with BNT162b2 contributing $11.3 billion.
  • 3Excluding BNT162b2, operational revenue growth remained strong at 10% for the quarter and 9% for the first six months, driven by key products like Eliquis, Vyndaqel/Vyndamax, and Inlyta.
  • 4Net income attributable to Pfizer Inc. common shareholders was $5.6 billion ($0.99/share) for Q2 2021 and $10.4 billion ($1.87/share) for the first six months.
  • 5The company ended the quarter with $2.4 billion in cash and cash equivalents and $19.3 billion in short-term investments, indicating a strong liquidity position.
  • 6Significant business development activities were highlighted, including a global collaboration with Arvinas, Inc. for ARV-471 and the acquisition of Amplyx Pharmaceuticals, Inc.

Frequently Asked Questions

The primary driver of Pfizer's significant revenue increase in the second quarter of 2021 was the strong performance of the Pfizer-BioNTech COVID-19 vaccine (BNT162b2), which generated $7.8 billion in revenues during the quarter. This vaccine's global uptake and supply agreements contributed substantially to the overall 92% year-over-year revenue growth.

Excluding the revenues from the BNT162b2 vaccine, Pfizer's core business demonstrated robust growth. Operational revenue increased by 10% in the second quarter and 9% in the first six months of 2021 compared to the prior year. This growth was supported by strong performance in key products such as Eliquis, Vyndaqel/Vyndamax, Inlyta, and Xtandi, as well as growth in the biosimilars and Hospital segments, indicating continued strength in its diversified portfolio.

Pfizer maintained a strong financial position as of July 4, 2021. Total assets stood at $170 billion, with total equity at $70.3 billion. The company had $2.4 billion in cash and cash equivalents and $19.3 billion in short-term investments, providing ample liquidity. The company also highlighted its access to credit facilities and its ability to meet liquidity needs for the foreseeable future.

Pfizer has actively pursued strategic business development initiatives. Notable activities include a global collaboration with Arvinas, Inc. to develop and commercialize ARV-471, an investigational oral PROTAC® estrogen receptor protein degrader, involving an upfront payment of $650 million and a $350 million equity investment. Additionally, Pfizer acquired Amplyx Pharmaceuticals, Inc., a company focused on therapies for immunocompromised patients, further strengthening its pipeline in critical therapeutic areas.