10-QPeriod: Q2 FY2022

PFIZER INC Quarterly Report for Q2 Ended Apr 3, 2022

Filed May 11, 2022For Securities:PFE

Summary

Pfizer Inc. reported a substantial increase in revenues for the first quarter of 2022, reaching $25.7 billion, a 77% jump from the prior year's quarter. This growth was overwhelmingly driven by sales of its COVID-19 vaccine, Comirnaty, and its COVID-19 treatment, Paxlovid, which contributed significantly to both domestic and international markets. Net income attributable to Pfizer Inc. common shareholders also saw a significant increase, rising to $7.86 billion ($1.37 per diluted share) from $4.88 billion ($0.86 per diluted share) in the same period last year. The company also completed the acquisition of Arena Pharmaceuticals for $6.6 billion, adding new development-stage therapeutic candidates to its portfolio. While the core business demonstrated strong performance fueled by its COVID-19 products, Pfizer continued to invest in its R&D pipeline and manage its strategic transformation, which included restructuring charges and ongoing business development activities. The company reaffirms its full-year revenue guidance for Comirnaty and Paxlovid, indicating continued reliance on these products for growth.

Financial Highlights

53 data points
Beta

Revenue

$25.66B

61.1% Gross Margin

Net Income

$7.86B

30.6% Net Margin

EPS (Diluted)

$1.37

Total Assets

$183.84B

Cash & Equivalents

$2.47B

Free Cash Flow

$5.90B

Financial Statements
Beta
Revenue$25.66B
Cost of Revenue$9.98B
Gross Profit$15.68B
SG&A Expenses$2.59B
Interest Expense$322.00M
Net Income$7.86B
EPS (Basic)$1.40
EPS (Diluted)$1.37
Shares Outstanding (Basic)5.62B
Shares Outstanding (Diluted)5.76B

Key Highlights

  • 1Total revenues surged by 77% to $25.7 billion, primarily driven by strong sales of Comirnaty (COVID-19 vaccine) and Paxlovid (COVID-19 treatment).
  • 2Net income attributable to Pfizer Inc. common shareholders increased to $7.86 billion, or $1.37 per diluted share, compared to $4.88 billion, or $0.86 per diluted share, in the prior year's quarter.
  • 3The company completed the acquisition of Arena Pharmaceuticals for $6.6 billion, expanding its pipeline in immuno-inflammatory diseases.
  • 4Operational revenue growth, excluding direct sales and alliance revenues of Comirnaty and sales of Paxlovid, was 2%, demonstrating resilience in other product areas.
  • 5Pfizer is reaffirming its 2022 revenue forecast of approximately $32 billion for Comirnaty and $22 billion for Paxlovid.
  • 6Research and development expenses increased by 15% to $2.3 billion, reflecting continued investment in late-stage clinical programs and COVID-19 related initiatives.
  • 7The company repurchased $2.0 billion of its common stock in the first quarter of 2022.

Frequently Asked Questions

The primary drivers of Pfizer's substantial revenue growth in Q1 2022 were the strong sales performance of its COVID-19 vaccine, Comirnaty, and its oral COVID-19 treatment, Paxlovid. These products significantly contributed to both domestic and international revenue figures.

Pfizer's profitability saw a significant increase. Net income attributable to Pfizer Inc. common shareholders rose to $7.86 billion from $4.88 billion in the same period last year. Diluted earnings per share also increased to $1.37 from $0.86 year-over-year.

Pfizer reaffirmed its strong revenue outlook for its COVID-19 products, forecasting approximately $32 billion in revenues for Comirnaty and $22 billion for Paxlovid for the full year 2022. This forecast is based on current supply and purchase agreements.

A major business development activity was the acquisition of Arena Pharmaceuticals for $6.6 billion in March 2022. This acquisition is expected to enhance Pfizer's pipeline in immuno-inflammatory diseases. Additionally, Pfizer announced an agreement to acquire Biohaven Pharmaceutical Holding Company for approximately $11.6 billion, which is expected to close in early 2023.