Pfizer Lifts Outlook on Covid-19 Vaccine, Posts Weaker-Than-Expected Profit -- Update
February 02 2021 - 11:45AM
Dow Jones News
By Jared S. Hopkins and Matt Grossman
Pfizer Inc. said it expects its Covid-19 vaccine to generate
about $15 billion in sales this year, indicating the business
opportunity created by protecting people from the pandemic.
The vaccine contributed $154 million of the company's $11.7
billion in sales during the fourth quarter, helping lift the
company's overall revenue from all vaccines to $2 billion, a 17%
year-over-year increase.
Pfizer projects the vaccine's impact will be considerable this
year, becoming one of the company's top-selling products. In 2021,
Pfizer expects full-year revenue of between $59.4 billion and $61.4
billion, and adjusted earnings of between $3.10 and $3.20 a
share.
"Based on what we've seen so far, we believe it is increasingly
likely that a durable Covid-19 vaccine revenue stream, like it
happens in flu, is a potential outcome," Pfizer Chief Executive
Albert Bourla told analysts Tuesday.
Pfizer's fourth-quarter profit was $594 million, or 10 cents a
share, compared with a year-earlier loss of $337 million, or 6
cents a share. Excluding one-time items, Pfizer reported an
adjusted profit of 42 cents a share. Analysts had forecast an
adjusted profit of 50 cents a share.
Pfizer said it expects full-year revenue of $59.4 billion to
$61.4 billion, and an adjusted profit of $3.10 to $3.20 a
share.
Shares were down 2% in trading midday on the New York Stock
Exchange.
Pfizer's Covid-19 vaccine sales forecast suggests the business
opportunity for drugmakers responding to the pandemic. Companies
including Gilead Sciences Inc., which sells an antiviral, have
reported sales bumps from coronavirus treatments.
It is unclear, however, how long Pfizer could sustain its
Covid-19 vaccine revenues at such a high level, according to
analysts. New Covid-19 vaccines from other companies could be
authorized in the coming months, eating into Pfizer's sales.
Sales could also be hurt if a variant emerges that evades
Pfizer's vaccine, co-developed with BioNTech SE.
The companies have said recent lab results suggested the new
variants found in the U.K. and in South Africa would have only a
small impact on the shot's effectiveness, though the study did find
antibodies generated by the vaccine were slightly less effective
against mutations in the variant identified in South Africa.
Other vaccine makers, including Johnson & Johnson and
Moderna Inc., have said they are working on a booster shot or
modified vaccine after testing found their vaccines weren't as
effective against the South Africa variant, in particular.
Still, Pfizer has said it expects global demand for vaccinations
against Covid-19 to last at least several years beyond 2022. Pfizer
plans to produce two billion doses globally world-wide this
year.
Pfizer has agreed to provide the U.S. government 200 million
doses by the end of July for nearly $4 billion, or $19.50 per dose.
Pfizer now expects to complete delivery by the end of May because
regulators agreed the company can count six doses per vial, up from
five.
Pfizer has been upgrading manufacturing facilities to meet
demand. It also struck agreements with rivals such as Novartis AG
to help manufacture doses during the pandemic.
The Pfizer-BioNTech vaccine was authorized by the U.S. Food and
Drug Administration in December. Authorities in some 50 other
countries have also cleared use of the shots.
Pfizer's quarterly revenue was up 12% from $10.45 billion
reported in the same quarter a year earlier. Analysts surveyed by
FactSet were expecting revenue of $11.48 billion.
Revenue for its cancer drugs grew by nearly one-quarter to more
than $3 billion, as sales grew for products such as breast cancer
treatment Ibrance. It also saw sales growth in rare disease drug
Vyndaqel and blood thinner Eliquis.
During the quarter, Pfizer completed a deal to spin off its
Upjohn unit in a combination with Mylan NV, forming a new
generic-drug maker called Viatris Inc.
Write to Jared S. Hopkins at jared.hopkins@wsj.com and Matt
Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
February 02, 2021 12:30 ET (17:30 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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