Pfizer beats profit estimates as new drugs offset COVID products slump

Pfizer Inc surpassed analysts’ expectations for first-quarter earnings on Tuesday, thanks to robust demand for recently acquired drugs and pneumococcal vaccinations, which helped offset the impact of falling sales of its COVID-19 medications.

The pharmaceutical company is under pressure to spend the windfall profits from strong demand for its COVID medicines during the pandemic to offset a potential patent cliff for some of its top treatments, as well as a rapid reduction in COVID-related sales.

Pfizer anticipates that 2023 will be a “transition year” for its COVID products, with a potential return to growth in 2024.

Sales of its COVID-19 vaccine Comirnaty and antiviral treatment, Paxlovid, came in at $7.1 billion for the quarter.

Sales from its family of pneumococcal vaccines were $1.59 billion for the quarter, slightly above estimates of $1.58 billion, according to Refinitiv estimates.

Shares of the company rose nearly 2% before the bell.

Excluding items, the U.S. drugmaker earned $1.23 per share for the quarter ended March 31, compared with estimates of 98 cents, according to Refinitiv estimates.

The drugmaker reaffirmed its annual profit forecast of $3.25 to $3.45 per share.