Shares of Pfizer Inc. (NYSE: PFE) were down on Tuesday, after the company delivered lackluster results for the third quarter of 2023. Total revenues declined due to a drop in COVID-19 products revenue, and the company posted a net loss for the quarter. On the flip side, revenue from non-COVID products witnessed growth. In addition, Pfizer reaffirmed its guidance for the full year of 2023.
Quarterly numbers
Pfizer’s total revenues in the third quarter of 2023 decreased 42% year-over-year to $13.2 billion. The decline was caused by lower revenues from its COVID-19 products, Paxlovid and Comirnaty.
The company reported a net loss of $0.42 per share on a reported basis and $0.17 per share on an adjusted basis in Q3. This compares to reported EPS of $1.51 and adjusted EPS of $1.78 recorded in the prior-year period. The losses were the result of lower sales of COVID-19 products, and non-cash inventory write-offs and other charges.
COVID and non-COVID products
In the third quarter, Pfizer saw a decrease in revenues from its COVID-19 products – Comirnaty and Paxlovid. Comirnaty revenues declined 70% YoY to $1.30 billion, mainly due to lower contracted deliveries within the US and in international markets, as well as lower international demand.
Paxlovid revenues decreased 97% YoY to $202 million in Q3, driven mainly by no US sales in anticipation of commercial transition, and lower contractual deliveries in most international markets.
Meanwhile, the company’s non-COVID products performed well, with revenue growing 10% operationally versus the prior-year quarter. Products like Abrysvo, Vyndaqel and Prevnar also contributed to the revenue growth in the quarter.
For the full year of 2023, Pfizer expects Comirnaty revenues of approx. $11.5 billion, which represents a decline of 70% from 2022. Paxlovid revenues are expected to be around $1 billion, down 95% from last year. The company expects revenue from non-COVID products to grow 6-8% on an operational basis in FY2023.
Outlook
Pfizer expects revenues to range between $58-61 billion in FY2023, representing a YoY decline of 39-42%. The drop in revenues is due to expected revenue declines for COVID-19 products. Adjusted EPS is expected to range between $1.45-1.65, representing a YoY decrease of 75-78%.