US-based Pfizer Inc. (NYSE: PFE) reported its Q4 2022 financial results, highlighting an all-time high in 12-month revenues of USD 100.3 billion, up 30% year-on-year (YOY) excluding foreign exchange impacts. The company’s COVID-19 portfolio, including the Comirnaty vaccine and Paxlovid treatment, drove significant growth, though Pfizer expects a substantial revenue decline in 2023 as demand for COVID-19 products wanes.
COVID-19 Portfolio Performance
Pfizer’s COVID-19 business delivered over USD 56 billion in revenues, with the Comirnaty mRNA vaccine generating USD 37.8 billion in sales and Paxlovid contributing USD 18.93 billion. For 2023, Pfizer forecasts a USD 30 billion drop in revenues, setting its guidance at USD 67-71 billion. Comirnaty is expected to maintain around USD 13.5 billion in sales, while Paxlovid is projected to generate approximately USD 8 billion.
Pricing and Market Dynamics
In October, Reuters reported that Pfizer was considering raising the price of Comirnaty to USD 100-130 per dose, compared to the USD 30 per dose paid by the US government under previous agreements. This week, UK lawmakers sent a letter to Pfizer CEO Albert Bourla, urging reconsideration of price increases in the UK market.
Paxlovid Opportunity in China
During the earnings call, Bourla addressed speculation about Paxlovid’s market opportunity in China. He clarified that Pfizer has agreements with local Chinese companies for importing, distributing, and manufacturing Paxlovid. In 2022, Pfizer shipped only tens of thousands of courses to China, but expects to ship millions of courses in the first quarter of 2023 to meet growing demand. Paxlovid currently holds temporary reimbursement status in China until March 31. Despite not being included on China’s National Drug Reimbursement List, Bourla noted that Pfizer plans to offer the product on the private market after April 1.
Beyond COVID-19
Excluding COVID-19 products, Pfizer’s full-year revenues grew 2% YOY. CFO David Denton forecasted strong topline growth of 7%-9% in 2023, excluding COVID-19 products and foreign exchange impacts. Pfizer’s non-COVID portfolio includes eight products generating over USD 1 billion in revenues:
- Eliquis (apixaban), an anti-coagulant, with sales of USD 6.48 billion, up 14%;
- Prevnar (Pneumococcal 7-val conjugate vaccine), at USD 6.34 billion, up 23%;
- Vyndaqel (tafamidis meglumine), a heart failure therapy, up 29% to USD 2.45 billion.
Future Growth and New Product Launches
Pfizer is reinvesting its COVID-19 windfalls into new product acquisitions and launches. Bourla highlighted that 2023 is expected to be a record year, with potentially the largest number of new product and indication launches in Pfizer’s history. Notable upcoming launches include a 20-valent pneumococcal conjugate vaccine candidate, filed with the US FDA in January 2023 and expected to receive a regulatory decision in April.
