Pfizer Q1 Results: Co lifts profit view on cost cuts, smaller drop in Paxlovid

The Seagen deal, as well as its $4 billion cost-cutting plan, are a key part of Pfizer's post-COVID growth strategy. Investors have also been tracking the performance of the company's new RSV vaccine, which has been trailing a rival shot from GSK since they both launched last year.

The company raised both ends of its 2024 profit forecast range by 10 cents - less than the first-quarter beat - and now expects to earn $2.15 to $2.35 per share. of the New York-based drugmaker, which have lost 11% of their value this year, rose about 4% to $26.65 in morning trade.

"I think investors have become so accustomed to disappointments that a solid and an upgrade were always going to be well received," said Derren Nathan, analyst at Hargreaves Lansdown.

Seagen's targeted cancer therapies Padcev and Adcetris brought in combined sales of $598 million in the quarter for Pfizer, although Adcetris sales fell short of analysts' expectations.

Sales of Abrysvo for protection against respiratory syncytial virus (RSV) were $145 million, short of the $353.3 million expected by analysts.

"It would be good to see an acceleration for Abrysvo," Nathan added. "The $145 million feels disappointing. GSK's Arexvy seems to be gaining acceptance at a quicker rate."

Earlier on Wednesday, GSK said Arexvy sales were 182 million pounds ($227.26 million) in the first-quarter, more than 80% of which came from the United States. GSK said an "overwhelming majority of doses" were administered in the retail setting.

Arexvy currently owns two-thirds of the new RSV vaccine market.

Pfizer said it still expects $8 billion in combined sales of its COVID-19 products, the vaccine Comirnaty it shares with BionTech and oral antiviral Paxlovid.

Paxlovid sales dropped 50% to $2.04 billion for the quarter, but came in well above the $762.5 million analysts had expected.

Pfizer last year renegotiated a U.S. contract, allowing the government to return unused Paxlovid inventory. It recorded a $771 million favorable adjustment in the quarter, related to the U.S. government return of some treatment courses.

The $771 million adjustment to the estimated reversal of $3.5 billion last quarter reflects 1.4 million fewer treatment courses returned by the U.S. government through Feb. 29, 2024 versus the estimated 6.5 million expected, a Pfizer spokesperson said.

Sales of the COVID vaccine fell 88% to $354 million, missing estimates of $496.5 million.

Prevnar pneumonia vaccines were a bright spot, taking in sales of $1.69 billion that beat estimates of $1.66 billion.

Pfizer posted an adjusted profit of 82 cents per share, topping analysts' expectations by 30 cents, according to LSEG data.