The Pfizer logo is outside the production facility of the pharmaceutical companies in Newbridge, Ireland, February 10, 2025.
Kilcoyne | Reuters
Pfizer On Tuesday, its cost reduction efforts expanded and reported the profit in the first quarter, which was estimated, even if the company's turnover is mainly due to the sales for its antiviral covid pill Paxlovid.
The company previously said that its cost reduction program would achieve the total cost savings of around $ 4.5 billion by the end of 2025. On Tuesday, Pfizer now expects additional savings of around $ 1.2 billion, mainly at sales, information and administrative costs until the end of 2027.
The company said that this is largely powered by “improved digital activation”, including automation and artificial intelligence and optimizing business processes.
The expanded cuts also include the expected reorganization cost savings of research and development costs of around 500 million US dollars by the end of 2026, the company added. These savings are invested in the Pfizer product pipeline.
Pfizer has a separate multi-year initiative to reduce the costs, the first phase of the effort to achieve $ 1.5 billion $ 1.5 billion by the end of 2027. After the additional cuts were announced on Tuesday on Tuesday, Pfizer is now expecting around $ 7.7 billion by the end of this year.
The cuts aim to help the pharmacher to recover from the rapid decline in his covid business and the share course in recent years and seem to pay off.
The company reported the following in the first quarter compared to the expectations of Wall Street, based on a survey of LSEG analysts:
- Win each share: 92 cents adapted compared to 66 cents
- Revenue: 13.72 billion US dollars are expected compared to $ 13.91 billion
“Fleeting external surroundings”
The results come as drug makers for the planned tariffs of President Donald Trump for pharmaceuticals that were imported into the USA – the offer of his government to increase the US production of medication.
In contrast to other companies that deal with the developing trade policy, Pfizer has not revised his prospects.
The company has maintained its outlook on the year 2025 and forecast sales of $ 61 to $ 64 billion, whereby the 2024 performance from its covid products saw as in 2024.
During the earnings call on Tuesday, Pfizer executives said that the instructions reflect 150 million US dollars on the existing tariffs of Trump.
“In our instructions, which we have not really talked about, it is that there are some tariffs today,” said Pfizer Cfo Dave Denton when calling.
“We consider that we can continue to develop this within our guideline area until the top of our guide area, even if these costs incur this year,” he said.
Pfizer's CEO, Albert Bourla, said the company had set up a team to analyze a number of potential results and develop strategies in order to alleviate the potential effects of tariffs on its business for a short time and long and in the long term. This team manages the current inventory level in certain jurisdiction and uses, among other things, the domestic manufacturing of Pfizer.
“If we are affected by other tariffs in the future, we will evaluate the effects of the issued guidelines and provide information at the right time,” said Bourla.
He added that the uncertainty in relation to Trump's pharmaceuticals keeps the company from further investing in manufacturing, research and development in the United States.
More CNBC health insurance
Pfizer also assumes that changes to the Medicare program impair sales by 1 billion US dollars due to the law on inflation reduction and growing growth by around 1.6% compared to 2024.
The company is expected that the company lies with a profit from 2025 in the range of $ 2.80 to $ 3 per share.
“With the underlying strength of our business, we believe that we can be agile in an insecure and volatile external environment,” said Bourla in a press release.
For the first quarter, the company booked a net profit of 2.97 billion US dollars or 52 cents per share. This corresponds to the net profit of 3.12 billion US dollars or 55 cents per share in the same period a year ago.
With the exception of certain items, including restructuring costs and costs associated with intangible assets, the company achieved a profit of 92 cents per share in the quarter.
Pfizer recorded sales of $ 13.72 billion in the first quarter, which decreased from 8% compared to the same period last year.
Covid turnover
The company stated that the decline in sales was mainly due to a decline in sales of Paxlovid, which is due to 76% by 76% in the first quarter compared to the same period in the previous year, partly due to lower COVID infections worldwide and reduced international state purchases of the drug.
The decline in sales also reflects a Boostpfizer, which is available in the first quarter of 2024 from a final adaptation in connection with a previously recorded reverse of sales for Paxlovid.
Analysts had expected Paxlovid, according to StreetCcount estimates, would achieve sales of $ 769.7 million for the first quarter in the first quarter.
In the meantime, the company's Covid Shot, Comirnaty, booked a turnover of 565 million US dollars, which increased an increase of 60% compared to the same period in the previous year. According to StreetCcount, these are over the 352 million US dollars, the analysts expected.
The results come when shot manufacturers such as Pfizer under Robert F. Kennedy Jr., a prominent vaccine skeptic, who is now monitoring the state's federal health authorities.
As a secretary of the Ministry of Health and Human Services, Kennedy has carried out a comprehensive revision of various agencies that cut staff, consolidated or eliminated offices and took measures that could ultimately undermine the vaccines.
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