Frankfurt The business with Covid vaccines and medicines has now passed its zenith at the US pharmaceutical giant Pfizer. However, it continues to develop better than previously forecast. Pfizer was therefore able to increase its sales forecast for the Covid vaccine Comirnaty by two billion dollars to 34 billion dollars for the full year 2022, despite significantly negative currency effects.
The US group also raised the lower end of its annual forecast. He now expects total proceeds of $99.5 billion to $102 billion. Operationally, that would be an increase of 29 to 32 percent. According to Pfizer, Comirnaty and the Covid drug Paxlovid will contribute a total of 56 billion dollars, more than half.
Adjusted earnings per share are expected to increase by a good two-thirds to $6.40 to $6.50 per share. That equates to a net profit of about $37 billion.
The US group’s improved guidance allows conclusions to be drawn about the business of the German partner Biontech. The two share gross profit from their joint Covid vaccine business, with Pfizer accounting for the lion’s share of global sales.
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There is much to suggest that the Mainz-based biotech company can also exceed its previous forecast. Because the developer of the Covid vaccine, which has so far announced sales of 13 to 17 billion euros for 2022, should also benefit from the strong appreciation of the dollar.
Biontech will present quarterly figures early next week. In response to Pfizer’s announcements, the Biontech share rose by a good three percent by early afternoon on Tuesday, and Pfizer was up just as much before the market.
The Pfizer figures in detail
The US group posted a total sales decline of six percent to 22.6 billion dollars in the third quarter. However, it was still well above market expectations.
Sales of the Covid vaccine Comirnaty fell by two thirds to $ 4.4 billion in the third quarter. However, that is still almost two billion dollars more than Pfizer originally forecast. This is mainly due to higher deliveries in the USA. For the fourth quarter, the US group expects increasing revenues of more than seven billion dollars.
The sharp decline in sales at Corminaty and the negative currency effects for Pfizer were also offset by additional sales of 7.5 billion dollars with the Covid drug Paxlovid. The drug is intended to stop the multiplication of the coronavirus in the cells and thus in the body and was only launched at the beginning of the year.
For Paxlovid, Pfizer expects sales of about $5 billion in the fourth quarter and $22 billion for the full year. All in all, the Covid business for the pharmaceutical giant continues to be an enormous earnings factor in the current year.
According to Pfizer, the established business grew by a moderate two percent after currency adjustments.
Post Covid business outlook
A significant challenge for the US group is to push the rest of the business more forward in order to continue generating growth even after the boom caused by Covid. Here, the group is still some way from the goal it has set itself of organically increasing revenues by around six percent per year by the end of the decade.
In addition, products with combined annual sales of $17 billion will lose patent protection by 2030. These include blockbusters such as the cancer drug Ibrance and the blood thinner Eliquis. Many investors are therefore skeptical when it comes to the long-term growth opportunities for the group.
>> Also read: German biotech company wants to launch better therapies for seriously ill Covid patients
Company boss Albert Bourla, on the other hand, referred to a well-stocked pipeline when the quarterly figures were presented on Tuesday. “We believe that we can not only offset these losses, but potentially deliver strong growth through the end of the decade.”
In the next 18 months, approvals for 19 products or extended areas of application are expected. Among other things, Bourla highlighted a vaccine against the respiratory syncytial virus (RSV). The group recently presented phase 3 data for the pathogen that causes respiratory diseases.
By the end of the decade, Pfizer wants to tap additional sales potential of around $25 billion through acquisitions and license deals. $26 billion has already been invested in acquisitions this year. Biotech firms Biohaven and Global Blood Therapeutics together cost Pfizer $17 billion. Thanks to the Covid proceeds, the group still has considerable scope for further deals.
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