8-KEarnings & Results

PFIZER INC 8-K Report, Financial Results (Apr 20, 2022)

Filed April 20, 2022For Securities:PFE

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.

Frequently Asked Questions

The main change is that Pfizer will now include acquired in-process research and development (IPR&D) costs in its non-GAAP Adjusted income and Adjusted diluted EPS, starting from the first quarter of 2022. Previously, some of these costs were excluded.

Pfizer anticipates that this change will reduce its Adjusted income by approximately $275 million and its Adjusted diluted EPS by $0.05 for the first quarter of 2022. However, these are preliminary estimates and the actual amounts could differ.

Starting in Q1 2022, acquired IPR&D expenses will be reported as a distinct line item in Pfizer's financial statements. The company will also restate prior periods to align with this new presentation and will begin including the impact of acquired IPR&D in its full-year financial guidance.

Pfizer plans to make recasted unaudited GAAP to non-GAAP reconciliations for the years 2020 and 2021 available on the 'About—Investors' section of its website (www.Pfizer.com) on or before April 30, 2022.