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PFIZER INC 8-K Report, Financial Results (Jan 30, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 30, 2024
Period End
January 30, 2024
Security
PFE
In the record · 2016–202610-K1110-Q328-K146

PFE filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 146 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Aug ’16Aug ’16
  2. Material agreement8-K · Jul ’19Jul ’19
  3. Leadership change8-K · Apr ’22Apr ’22
  4. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed January 30, 2024. Cited figures are marked; the original filing is the authoritative source.

Pfizer reported fourth-quarter and full-year 2023 results on January 30, 2024, showing sharp year-over-year declines driven by the expected fall in COVID-19 revenues.

Full-year 2023 revenues were $58.5 billiona, down 42% reported (41% operationally), while revenues excluding Comirnaty and Paxlovid grew 7% operationally. Reported diluted EPS was $0.37, down 93%, and Adjusted diluted EPS was $1.84, down 72%. Results were heavily affected by one-time items: $5.6 billion of COVID product inventory write-offs in Q3 2023 and a $3.5 billion non-cash Paxlovid revenue reversal in Q4 2023, which together reduced EPS by $1.36 for the full year.

Fourth-quarter Reported diluted EPS was a loss of $(0.60), with Adjusted diluted EPS of $0.10b. The quarter also featured the completion of the $43 billion Seagen acquisition in December 2023, which Pfizer positions as the foundation of a new world-class oncology business. Management highlighted a record nine new molecular entity approvals from the FDA in 2023 and strong growth from newer and in-line products such as Abrysvo, Vyndaqel family, and Eliquis.

Pfizer reaffirmed its 2024 guidance of $58.5 to $61.5 billionc in revenue and Adjusted diluted EPS of $2.05 to $2.25. That EPS range includes a roughly $0.40 dilution from Seagen, mainly financing costs, and assumes no share repurchases.

For investors, the key questions are whether non-COVID growth (targeted at 8% to 10% operationally in 2024 including Seagen) can offset the continued COVID revenue decline, whether the cost realignment program delivers at least $4 billiond in net savings by end-2024, and how the company manages its increased debt load after the Seagen financing. The dividend was $1.64 per share for 2023, and the company has $3.3 billion remaining on its repurchase authorization but does not plan to use it in 2024.

02—Key points

Key Highlights

  1. FY2023 revenues of $58.5B, down 42% reported (41% operational), driven by COVID products; ex-Comirnaty and Paxlovid, revenues grew 7% operationally.
  2. FY2023 Reported diluted EPS of $0.37 (down 93%) and Adjusted diluted EPS of $1.84 (down 72%); $5.6B Q3 COVID inventory write-offs and $3.5B Q4 Paxlovid revenue reversal reduced EPS by $1.36.
  3. Q4 2023 revenues of $14.2B (down 41%); Reported diluted loss per share of $(0.60) and Adjusted diluted EPS of $0.10.
  4. Completed the ~$43B net ($44B total) Seagen acquisition in December 2023, creating a combined oncology organization with over 25 approved medicines and biosimilars.
  5. 2024 guidance reaffirmed: revenues of $58.5–61.5B and Adjusted diluted EPS of $2.05–2.25, including a ~$0.40 Seagen dilution mainly from financing costs.
  6. Targeting at least $4B in annual net cost savings by end of 2024 from the cost realignment program, expected to expand operating margins.
  7. No share repurchases in 2023 or planned for 2024; $3.3B repurchase authorization remains, and $9.2B in dividends ($1.64/share) were paid in 2023.

03—Questions

Frequently Asked Questions

  1. How much did Pfizer's revenue decline in 2023, and what caused it?

    Full-year 2023 revenues were $58.5 billion, down 42% reported and 41% operationally from $100.3 billion in 2022. The decline was driven primarily by much lower Comirnaty and Paxlovid revenues. Excluding these two COVID products, revenues grew 7% operationally, led by new launches such as Abrysvo, along with growth in Vyndaqel and Eliquis.

  2. Why were Pfizer's 2023 earnings so much lower than in 2022?

    Earnings were significantly affected by one-time items. These included $5.6 billion in non-cash COVID product inventory write-offs in Q3 2023 and a $3.5 billion non-cash Paxlovid revenue reversal in Q4 2023, which together reduced full-year EPS by $1.36. Reported EPS also reflected intangible asset impairments of $2.8 billion in Q4 alone and a lower revenue base as COVID sales declined.

  3. What is Pfizer's 2024 outlook?

    Pfizer reaffirmed 2024 guidance of $58.5–61.5 billion in revenues and Adjusted diluted EPS of $2.05–2.25. The guidance includes roughly $8 billion from Comirnaty and Paxlovid, about $3.1 billion from Seagen, and about $1 billion from reclassifying royalty income into revenue. Excluding COVID products and including Seagen, operational revenue growth is expected at 8% to 10%.

  4. Will Pfizer buy back shares or pay dividends in 2024?

    No share repurchases were made in 2023, and current guidance assumes none in 2024, though $3.3 billion remains under the existing authorization. Pfizer paid $9.2 billion in cash dividends in 2023, or $1.64 per share, and the filing does not indicate a change to that dividend in 2024.

  5. What is the financial impact of the Seagen acquisition?

    The Seagen acquisition closed in December 2023 for $229 per share in cash, a total fair value of $44 billion ($43 billion net of cash acquired). Pfizer expects about $3.1 billion in 2024 Seagen revenues and a roughly $0.40 dilution to 2024 Adjusted EPS, driven mainly by costs to finance the transaction, including $31 billion of long-term debt issued in May 2023 and $8 billion of commercial paper.

04—Continue

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