US pharmaceutical giant Pfizer Inc., (NYSE: PFE) has released its financial results for the third quarter of 2023, reporting a contraction of -41% year-on-year (YOY) in operational terms to USD 13.2 billion, excluding foreign currency fluctuations. The quarter was marked by a net loss of USD 2.38 billion, the company’s first since 2019, largely due to a USD 5.7 billion write-off of COVID-19 product inventory, primarily related to the US government’s cancellation of Paxlovid orders. In response, Pfizer is launching a ‘cost realignment program’ to achieve at least USD 3.5 billion in net cost savings by the end of 2024 and enhance profitability.
Positive Growth and COVID-19 Impact
On a positive note, excluding COVID-19-related sales, Pfizer’s other products contributed to a 10% YOY growth. The company’s leadership is confident that the target for full-year non-COVID revenue growth of 6%-8% will be met. Key performers highlighted by Pfizer include Abrysvo, the recently approved RSV vaccine, which contributed USD 375 million in sales, and the 2022 acquisitions of BioHaven and Global Blood Therapeutics (GBT), which are proving successful with BioHaven’s migraine drug Nurtec ODT/Vydura (rimegepant) generating USD 233 million in sales and GBT’s sickle cell disease drug Oxbryta (voxelotor) making USD 85 million. The Vyndaqel (tafamidis) family of cardiomyopathy drugs saw sales up 47% to USD 892 million, while the Prevnar (13 and 20) pneumococcal vaccine family sales expanded by 15% to USD 1.9 billion.
Seagen Acquisition and Pipeline Developments
The USD 43 billion deal to purchase antibody drug conjugate (ADC) specialist Seagen Inc. (NASDAQ: SGEN) is nearing completion with unconditional approval from the European Commission in October. Pfizer CEO Albert Bourla stated during the earnings conference call that the transaction is expected to close late in 2023 or early 2024, pending approval from the US Federal Trade Commission (FTC). Once closed, Seagen is forecast to contribute at least USD 10 billion in annual revenues to Pfizer by 2030.
Pipeline Challenges and Discontinuations
Despite several positive pipeline developments, including FDA recognition of Abrilada’s interchangeability with Humira and approvals for Elrexfio and Braftovi/Mektovi, Pfizer’s Q3 update also included the discontinuation of five programs: PF-06730512, a treatment for Focal Segmental Glomerulosclerosis (FSGS); PF-07038124, a topical PDE4 inhibitor for atopic dermatitis and psoriasis; and three Phase I drugs, PF-06647020, PF-07257876, and PF-07265028, targeting NSCLC and solid tumors.-Fineline Info & Tech
