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Pfizer’s finances just got a (literal) shot in the arm.
The pharmaceutical giant reported its Q3 earnings on October 29 and has exceeded expectations, making $4.5 billion in net income, compared to a net loss of $2.4 billion in the same period last year.
Pfizer’s revenue also hit $17.7 billion in Q3, a 32% YoY growth, according to the report. This surpassed predictions, as data company Fact Sheet had expected the company to reach $14.9 billion in revenue, the Wall Street Journal reported Tuesday.
The company’s execs said the boost was driven by sales from its Covid-19 vaccine and its treatment for the disease, Paxlovid. The vaccine made $1.4 billion in revenue, and Paxlovid revenues hit $2.7 billion in Q3.
“I’m extremely pleased with our third-quarter 2024 results and our overall performance this year,” Pfizer chair and CEO Albert Bourla said on the earnings call.
Look ahead. In its report, Pfizer predicted it would make between $61 billion to $64 billion in revenue this year, expecting $5 billion from the vaccine and $5.5 billion from Paxlovid. That’s an update from last quarter’s forecast, which increased from $59.5 billion to $62.5 billion this year.
Still, Pfizer’s stocks were down on Tuesday, dropping 1.3% to $28.48, according to Reuters.
Part of the pressure comes from activist hedge fund Starboard Value, which bought a $1 billion stake in Pfizer earlier this month and has been meeting with leadership, Bourla said during the earnings call.
The Pfizer team has been “mainly in listening mode,” Bourla said, sharing that it agreed with Starboard on some potential plans for the company and disagreed on others.
“[Starboard Value analysts] expressed dissatisfaction with our total shareholder return. We are not satisfied either, though we believe we are executing on the best path forward to increase shareholder return,” Bourla said, noting that the company is following a five-point plan that it released in January.
The plan includes developing inventions to finding strong oncology leadership and new innovations, maximizing product performance, and boosting value to shareholders, according to its Q4 2023 report.
“We remain focused on executing this plan and on delivering for our commitments, including driving long-term shareholder value. We will engage productively with our shareholders, including Starboard, and will consider all good ideas,” Bourla said.