10-QPeriod: Q3 FY2022

PFIZER INC Quarterly Report for Q3 Ended Jul 3, 2022

Filed August 10, 2022For Securities:PFE

Summary

Pfizer Inc. reported strong financial results for the quarter and six months ended July 3, 2022. Total revenues surged by 47% and 60% respectively, primarily driven by substantial contributions from its COVID-19 products, Comirnaty and Paxlovid. Net income attributable to Pfizer Inc. common shareholders also saw significant increases, reflecting the strong revenue growth. The company's strategic acquisitions, including that of Arena Pharmaceuticals, are beginning to contribute, with integration costs noted. Pfizer continues to manage its diverse portfolio, with key products like Eliquis, Prevnar family, and Vyndaqel/Vyndamax showing robust operational growth, while some products like Xeljanz and Sutent experienced declines due to market dynamics and loss of exclusivity. The company also provided updated financial guidance for its COVID-19 related products, indicating continued significant revenue expectations for the remainder of the year. Pfizer remains focused on innovation and strategic business development, positioning itself for future growth.

Financial Highlights

55 data points
Beta

Revenue

$27.74B

68.8% Gross Margin

Net Income

$9.91B

35.7% Net Margin

EPS (Diluted)

$1.73

Total Assets

$195.29B

Cash & Equivalents

$1.78B

Free Cash Flow

$7.42B

Financial Statements
Beta
Revenue$27.74B
Cost of Revenue$8.65B
Gross Profit$19.09B
SG&A Expenses$3.05B
Interest Expense$293.00M
Net Income$9.91B
EPS (Basic)$1.77
EPS (Diluted)$1.73
Shares Outstanding (Basic)5.59B
Shares Outstanding (Diluted)5.71B

Key Highlights

  • 1Total revenues increased by 47% to $27.7 billion for the three months ended July 3, 2022, and by 60% to $53.4 billion for the six months ended July 3, 2022, driven by Comirnaty and Paxlovid.
  • 2Net income attributable to Pfizer Inc. common shareholders increased significantly, reaching $9.9 billion for the three months and $17.8 billion for the six months ended July 3, 2022.
  • 3Operational revenue growth of 53% in Q2 2022 and 66% in the first six months of 2022, excluding foreign exchange impacts.
  • 4Acquisition of Arena Pharmaceuticals for $6.6 billion completed in March 2022, adding development-stage therapeutic candidates.
  • 5Significant revenue growth in key products like Eliquis, Prevnar family, and Vyndaqel/Vyndamax, demonstrating strength beyond COVID-19 products.
  • 6The company reiterated strong revenue forecasts for Comirnaty ($32 billion) and Paxlovid ($22 billion) for the full year 2022.
  • 7Cash provided by operating activities from continuing operations remained strong at $14.7 billion for the first six months of 2022.

Frequently Asked Questions

The primary drivers of Pfizer's revenue growth were its COVID-19 products, Comirnaty (vaccine) and Paxlovid (oral treatment). These products significantly boosted revenues, contributing to a 47% increase for the quarter and a 60% increase for the six-month period, compared to the prior year.

The acquisition of Arena Pharmaceuticals for $6.6 billion in March 2022 is expected to strengthen Pfizer's pipeline in immuno-inflammatory diseases. While the full financial impact is still developing, integration costs related to this and other acquisitions were noted in the 'Restructuring charges and certain acquisition-related costs' line item. The acquisition of Arena contributed $1.0 billion to Goodwill and $5.5 billion to Identifiable intangible assets, with the allocation of consideration still being finalized.

Pfizer maintains a strong outlook for its COVID-19 products. As of July 28, 2022, the company forecasted approximately $32 billion in revenues for Comirnaty and $22 billion for Paxlovid for the full year 2022. These forecasts are based on existing contracts and expected deliveries.

Pfizer is involved in various legal proceedings, including patent litigation, product liability claims, government investigations, and other commercial matters. While the company states it believes its claims and defenses are substantial and does not believe any single matter will have a material adverse effect on its financial position, it acknowledges that litigation is unpredictable and that adverse outcomes could impact results of operations and cash flows. Specific matters include ongoing litigation related to Comirnaty and Paxlovid patents, as well as numerous product liability lawsuits concerning historical products like Zantac and Chantix.