10-QPeriod: Q2 FY2024

PFIZER INC Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 5, 2024For Securities:PFE

Summary

Pfizer Inc. (PFE) reported $13.28 billion in total revenues for the second quarter of 2024, a slight increase of 2% year-over-year, driven by operational growth from legacy Seagen products and continued demand for its Vyndaqel family and Eliquis, partially offset by declines in Comirnaty and Xeljanz. For the first six months of 2024, total revenues were $28.16 billion, down 11% year-over-year, primarily due to significant declines in Comirnaty and Paxlovid sales. The company experienced a net loss attributable to Pfizer Inc. common shareholders of $41 million for the quarter, a stark contrast to the $2.33 billion net income reported in the same period last year. This shift is largely attributable to increased restructuring charges and acquisition-related costs, unfavorable movements in equity securities, and higher net interest expenses. Despite these challenges, Pfizer is actively pursuing cost realignment and manufacturing optimization programs, signaling a focus on improving future profitability and aligning costs with evolving revenue expectations.

Financial Highlights

54 data points
Beta

Revenue

$13.28B

75.2% Gross Margin

Net Income

$41.00M

0.3% Net Margin

EPS (Diluted)

$0.01

Total Assets

$216.19B

Cash & Equivalents

$1.05B

Free Cash Flow

-$2.42B

Financial Statements
Beta
Revenue$13.28B
Cost of Revenue$3.30B
Gross Profit$9.98B
SG&A Expenses$3.72B
Interest Expense$778.00M
Net Income$41.00M
EPS (Basic)$0.01
EPS (Diluted)$0.01
Shares Outstanding (Basic)5.67B
Shares Outstanding (Diluted)5.70B

Key Highlights

  • 1Total revenues for Q2 2024 were $13.28 billion, a 2% increase year-over-year, driven by operational growth from new acquisitions and key product lines, partially offset by declines in COVID-19 products.
  • 2Net income attributable to Pfizer Inc. common shareholders for Q2 2024 was a loss of $41 million, a significant decrease from a profit of $2.33 billion in Q2 2023, largely due to increased restructuring charges and acquisition-related costs.
  • 3The company incurred substantial restructuring charges and acquisition-related costs of $1.25 billion in Q2 2024, a significant increase from $214 million in the prior year, reflecting ongoing cost realignment and manufacturing optimization programs.
  • 4Revenues from the Vyndaqel family increased by 71% operationally year-over-year in Q2 2024, highlighting strong demand for these products.
  • 5Comirnaty sales saw a significant year-over-year decline of 87% operationally in Q2 2024, reflecting the transition to commercial markets and seasonal demand patterns.
  • 6Pfizer reported $6.05 billion in cash and cash equivalents and short-term investments as of June 30, 2024, indicating a decrease from $12.69 billion at the end of 2023, impacted by acquisition spending and cash deployment.
  • 7The company sold approximately 30% of its investment in Haleon in March 2024 for $3.5 billion, recognizing a gain of $150 million.

Frequently Asked Questions

The 2% year-over-year revenue increase in Q2 2024 was primarily driven by operational growth from legacy Seagen products acquired in December 2023, continued strong demand for the Vyndaqel family and Eliquis, and growth in Paxlovid and Nurtec ODT/Vydura. These increases were partially offset by declines in Comirnaty and, to a lesser extent, Xeljanz and Ibrance.

The shift from a net income of $2.33 billion in Q2 2023 to a net loss of $41 million in Q2 2024 is primarily attributable to increased restructuring charges and certain acquisition-related costs, totaling $1.25 billion in Q2 2024 compared to $214 million in Q2 2023. Additionally, net losses on equity securities and higher net interest expenses in the current quarter contributed to the unfavorable comparison.

Pfizer is implementing two key multi-year programs: the 'Realigning our Cost Base Program' launched in late 2023, aimed at realigning costs with longer-term revenue expectations, and the 'Manufacturing Optimization Program' launched in Q2 2024, focused on reducing the cost of goods sold. These initiatives, along with the integration of Seagen and ongoing cost productivity efforts, are central to improving operating margins and future profitability.

Sales of Comirnaty and Paxlovid have significantly declined year-over-year. Comirnaty sales decreased by 87% operationally in Q2 2024, reflecting the transition to commercial markets and seasonal demand. Paxlovid sales also experienced declines, particularly in the first six months of 2024, due to lower contractual deliveries and the transition to commercial sales. The company anticipates that approximately 90% of its 2024 global revenues for Comirnaty will be recorded in the second half of the year, mostly in the fourth quarter.