10-QPeriod: Q2 FY2023

PFIZER INC Quarterly Report for Q2 Ended Apr 2, 2023

Filed May 10, 2023For Securities:PFE

Summary

Pfizer Inc. reported first-quarter 2023 revenues of $18.3 billion, a 29% decrease compared to $25.7 billion in the first quarter of 2022. This decline was primarily driven by lower sales of Comirnaty, partially offset by growth in Paxlovid. Excluding COVID-19 products, revenues increased by 5% operationally, driven by contributions from recently acquired products and continued strength in the company's non-COVID-19 portfolio such as Eliquis and the Vyndaqel family. Net income attributable to Pfizer Inc. common shareholders decreased to $5.54 billion ($0.97 per diluted share) from $7.86 billion ($1.37 per diluted share) in the prior year's quarter. The company also announced a significant proposed acquisition of Seagen for approximately $43 billion, which is expected to be financed substantially through new debt, and a termination of its collaboration with Merck KGaA for Bavencio, with Pfizer to receive a 15% royalty on future sales.

Financial Highlights

54 data points
Beta

Revenue

$18.49B

73.6% Gross Margin

Net Income

$5.54B

30.0% Net Margin

EPS (Diluted)

$0.97

Total Assets

$195.62B

Cash & Equivalents

$2.17B

Free Cash Flow

$73.00M

Financial Statements
Beta
Revenue$18.49B
Cost of Revenue$4.89B
Gross Profit$13.60B
SG&A Expenses$3.42B
Interest Expense$318.00M
Net Income$5.54B
EPS (Basic)$0.98
EPS (Diluted)$0.97
Shares Outstanding (Basic)5.63B
Shares Outstanding (Diluted)5.73B

Key Highlights

  • 1Total revenues for Q1 2023 were $18.3 billion, a 29% decrease from $25.7 billion in Q1 2022, primarily due to a 77% decline in Comirnaty sales.
  • 2Paxlovid sales increased by 177% year-over-year to $4.1 billion, driven by strong demand in China and favorable timing of U.S. government contract deliveries.
  • 3Excluding COVID-19 products, Pfizer's revenues grew 5% operationally, driven by new product contributions (Nurtec ODT/Vydura, Oxbryta) and strong performance from key drugs like Eliquis and the Vyndaqel family.
  • 4Net income attributable to Pfizer Inc. common shareholders decreased by 30% to $5.54 billion ($0.97 per diluted share) from $7.86 billion ($1.37 per diluted share) in Q1 2022.
  • 5Pfizer announced a proposed acquisition of Seagen for approximately $43 billion, expected to close in late 2023 or early 2024, to be financed substantially through new debt.
  • 6The company's collaboration agreement with Merck KGaA for Bavencio is terminating, with Merck KGaA taking full control and Pfizer receiving a 15% royalty on net sales.
  • 7R&D expenses increased by 9% to $2.5 billion, driven by investments in recently acquired assets and vaccine programs, despite lower spending on COVID-19 programs.

Frequently Asked Questions

The primary driver for the 29% decrease in revenue for Q1 2023 compared to Q1 2022 was the significant decline in sales of Comirnaty, Pfizer's COVID-19 vaccine. Comirnaty sales decreased by 77% year-over-year.

Pfizer is focusing on its non-COVID-19 portfolio, which showed operational growth of 5% in Q1 2023. This growth was fueled by recently acquired products like Nurtec ODT/Vydura and Oxbryta, as well as sustained performance from key products such as Eliquis, the Vyndaqel family, and Prevnar vaccines. The company also highlighted growth from Paxlovid, its COVID-19 treatment.

Pfizer announced a definitive agreement to acquire Seagen for approximately $43 billion in cash. This strategic move is intended to bolster Pfizer's oncology portfolio with Seagen's transformative cancer medicines. The transaction is expected to close in late 2023 or early 2024 and will be financed primarily through new long-term debt, which will increase Pfizer's leverage.

Pfizer expects a significant decrease in revenues from its COVID-19 products in 2023, with Comirnaty revenues forecasted to be down 64% and Paxlovid revenues down 58% compared to 2022. This is due to the anticipated transition from government contracts to traditional commercial markets in the latter half of 2023, and demand being fulfilled by existing government inventory. The company anticipates potential growth to resume in 2024.