Summary
This 8-K filing from Pfizer Inc. (PFE), dated April 20, 2022, primarily announces a change in how the company calculates its non-GAAP Adjusted income and Adjusted diluted EPS, effective the first quarter of 2022. Specifically, Pfizer will now include all acquired in-process research and development (IPR&D) costs, including those from collaboration and in-license agreements, and asset acquisitions of IPR&D, in its non-GAAP adjusted results. This change is being made after consultation with the SEC staff. The company anticipates this change will reduce its Adjusted income by approximately $275 million and Adjusted diluted EPS by $0.05 for the first quarter of 2022. Pfizer also stated that it will report IPR&D expenses as a separate line item in its financial statements and will recast prior periods to conform to this new presentation. Full-year financial guidance will also begin to incorporate the impact of acquired IPR&D expenses incurred or signed through a defined date.
Key Highlights
- 1Effective Q1 2022, Pfizer will include acquired in-process R&D (IPR&D) costs in its non-GAAP Adjusted income and Adjusted diluted EPS.
- 2This change aligns with SEC staff consultation and aims to provide a more comprehensive view of operational performance.
- 3The company expects this change to reduce Q1 2022 Adjusted income by approximately $275 million and Adjusted diluted EPS by $0.05.
- 4IPR&D expenses will be reported as a separate line item in consolidated statements of income starting Q1 2022.
- 5Prior financial periods will be recast to conform to the new presentation.
- 6Full-year financial guidance will incorporate the impact of acquired IPR&D expenses for transactions signed through a defined date.
- 7Pfizer plans to post recasted GAAP to non-GAAP reconciliations for 2020-2021 on its website by April 30, 2022.