Pfizer raises 2025 profit forecast on cost cuts, forex gains
The company said the new forecast absorbs a one-time charge of 20 cents per share related to its licensing deal with China's 3SBio (1530.HK), opens new tab for experimental cancer treatment. Shares of the New York-based company rose 2.8% to $24.19 in premarket trading.
The company's shares have lost more than half their value from their pandemic-era highs as the drugmaker deals with waning revenue from COVID products and looming patent expirations for key drugs. In response, the company launched cost-saving measures last year across its manufacturing and research operations.
Pfizer said it was on track to deliver $7.2 billion in net savings from the programs by the end of 2027, out of which about $4.5 billion will be delivered by the end of 2025.
J.P. Morgan analyst Chris Schott said that the quarterly beat and the forecast raise did not come as a surprise given the company's better-than-expected cost management.
"We would not be surprised with additional upside to EPS as the year progresses," Schott said.
The drugmaker now expects to earn $2.90 to $3.10 per share on an adjusted basis in 2025, compared with its previous expectations of $2.80 to $3.00 per share.
Total quarterly sales topped estimates by $1 billion and came in at $14.65 billion, including a $22 million favorable impact from foreign exchange.
Revenue from Pfizer's antiviral treatment, Paxlovid, was $427 million for the quarter, compared with analysts' expectations of $244.4 million.
COVID vaccine Comirnaty, which Pfizer makes with German partner BioNTech (22UAy.DE), opens new tab, brought in sales of $381 million. Analysts were expecting sales of $188 million.
On an adjusted basis, Pfizer earned 78 cents per share for the second quarter, compared with analysts' expectations of 58 cents.
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