Pfizer stock dipped Tuesday on lighter-than-expected declines in the March quarter, driven almost entirely by its Covid products, Comirnaty and Paxlovid.
The results were "impressive," said Lee Brown, health care analyst at research firm Third Bridge. But Brown noted that Pfizer maintained its outlook for the year, "which is disappointing."
Pfizer's outlook "is perhaps understandable given that most of the upside in the quarter came from Covid-19-related sales, which helped to drive the higher gross margin and deliver the bottom-line beat," he said in a report to clients.
During the quarter, BioNTech-partnered Covid vaccine Comirnaty generated $3.06 billion in sales. Comirnaty sales plunged 77% but topped forecasts for $2.71 billion. Paxlovid, an antiviral pill, brought in $4.07 billion in sales, an increase of 177% and ahead of calls for $2.88 billion.
Still, Pfizer's outlook indicates sales of both will topple this year.
On today's stock market, Pfizer stock fell 0.4% to close at 39.06. Shares are now well below their 50-day moving average, according to MarketSmith.com. Pfizer stock has trended down since December on decreasing expectations for the company's Covid products.
Pfizer Stock: First-Quarter Metrics Dive
Overall, first-quarter sales tumbled 29% to $18.28 billion and adjusted earnings skidded 24% to $1.23 a share. But both metrics beat forecasts for $16.61 billion in sales and 98 cents in adjusted profit, according to FactSet.
The "beat is all Covid," Evercore ISI analyst Umer Raffat said in a note to clients.
He said recent acquisitions — a migraine drug called Nurtec and sickle cell disease med Oxbryta — both missed expectations at a respective $167 million and $71 million. Pfizer stock analysts earlier forecast $220 million in sales from Nurtec and $79 million from Oxbryta, he said.
Sales of Pfizer's immunology drug Xeljanz plummeted. Xeljanz is under pressure after the Food and Drug Administration required it and other drugs in the same class to add a warning regarding cancer and cardiovascular risks to the label. Sales plummeted 36% on a strict, as-reported basis to $237 million.
Revenue from blood thinner Eliquis, in partnership with Bristol Myers Squibb, climbed 5% to $1.87 billion. But Citeline analyst Zhyar Said noted Eliquis is facing looming challenges.
"It is uncertain how long high sales from this dominant product will last due to loss of exclusivity in the upcoming years," Citeline's Said said.
Pfizer Keeps Its 2023 Outlook
The pharmaceutical company kept its full-year outlook for adjusted earnings of $3.25-$3.45 per share on $67 billion to $71 billion in sales. Earnings would dive 48%-51% as sales tumble 29%-33%. Pfizer stock analysts were expecting earnings of $3.39 per share on $68.47 billion in sales.
Pfizer's outlook includes $13.5 billion from Comirnaty and $8 billion from Paxlovid. On a year-over-year basis, Comirnaty sales would tumble 64% and Paxlovid sales would dive 58%.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
