Pfizer’s Strong Financial Performance in 2024

Pfizer, the global biopharmaceutical company, had a very successful year in 2024, reporting solid financial results despite ongoing challenges in the industry. The company’s total revenues increased by 7% to $63.6 billion, driven by strong performance across many of its key products.

Revenue Highlights

• Paxlovid, Pfizer’s COVID-19 treatment, saw a significant increase in revenues, up over 300% to $5.7 billion. This was due to a non-cash revenue reversal in 2023 being partially offset in 2024, as well as one-time contractual deliveries.
• The Vyndaqel family of products for the treatment of a rare heart disease grew 65% operationally to $5.5 billion, reflecting strong demand and increased affordability in the U.S.
• Eliquis, an anticoagulant, grew 10% operationally to $7.4 billion, driven by continued adoption and market share gains.
• Revenues from the Prevnar family of pneumococcal vaccines declined 1% operationally to $6.4 billion, due to fewer adult vaccinations in the U.S. and lower pediatric sales in some markets, partially offset by growth in the U.S. pediatric indication.
• Comirnaty, Pfizer’s COVID-19 vaccine, saw a 53% operational decline in revenues to $5.4 billion, as vaccination rates and demand decreased globally.

Profitability and Earnings Pfizer’s profitability also improved significantly in 2024. Income from continuing operations before taxes increased by over $7 billion to $8 billion, driven by higher revenues, lower cost of sales, and decreased restructuring and acquisition-related costs.

Adjusted diluted earnings per share (EPS), a non-GAAP measure that excludes certain items, increased by 69% to $3.11. This strong earnings growth was enabled by Pfizer’s focus on cost control, productivity initiatives, and effective capital allocation.

Operational Efficiency and Cost Management Pfizer has been actively managing its cost structure to improve profitability and competitiveness. In 2023, the company launched a multi-year cost realignment program expected to deliver $4.5 billion in net cost savings by the end of 2025, most of which was achieved by the end of 2024.

Additionally, Pfizer initiated a manufacturing optimization program in 2024 that is expected to generate approximately $1.5 billion in savings by the end of 2027 through operational efficiencies, network structure changes, and product portfolio enhancements.

These cost-saving initiatives, combined with Pfizer’s disciplined approach to capital allocation, have strengthened the company’s financial position and enabled increased investment in research and development (R&D) to drive future growth.

R&D and Pipeline Advancement Pfizer remains committed to innovation and advancing its robust pipeline of new medicines and vaccines. The company’s R&D expenses increased by 1% in 2024, reflecting investments in developing promising product candidates, including those acquired through the Seagen acquisition in late 2023.

Some key pipeline highlights include:

• Approval of Velsipity for the treatment of ulcerative colitis in the U.S. and EU
• Approval of Braftovi and Mektovi in combination for the treatment of BRAF V600E-mutant metastatic non-small cell lung cancer in the U.S. and EU
• Approval of Elrexfio for the treatment of triple-class relapsed/refractory multiple myeloma in the U.S., EU, and Japan
• Approval of Xtandi for the treatment of non-metastatic castration-sensitive prostate cancer with high risk of metastasis in the U.S. and EU
• Approval of Hympavzi for the treatment of hemophilia A and B without inhibitors in the U.S., EU, and Japan

Pfizer also has several late-stage programs in development, including potential new indications for existing products like Ibrance, Talzenna, and Eliquis, as well as novel candidates targeting areas such as ulcerative colitis, Lyme disease, and sickle cell disease.

Navigating Industry Challenges Like other pharmaceutical companies, Pfizer faces various industry-specific challenges, including pricing pressures, patent expirations, and regulatory hurdles. The company is actively addressing these issues through strategic initiatives and partnerships.

One key challenge is the pricing and reimbursement environment, particularly in the U.S. where the Inflation Reduction Act (IRA) has introduced new measures to regulate drug prices. Pfizer is closely monitoring the implementation of the IRA and evaluating its potential impact on the company’s business.

The company also continues to navigate the evolving COVID-19 landscape, with Comirnaty and Paxlovid remaining important parts of Pfizer’s portfolio. As the market for COVID-19 products becomes more endemic and seasonal, the company is focused on developing variant-adapted vaccines, combinations, and treatments to address the ongoing needs.

Outlook and Future Growth Looking ahead, Pfizer remains optimistic about its growth prospects. The company’s key priorities for 2025 include improving R&D productivity, expanding margins and operational efficiency, achieving commercial excellence in its core therapeutic areas, and optimizing capital allocation.

Pfizer’s strong financial performance, coupled with its focus on innovation, cost management, and strategic initiatives, positions the company well to navigate industry challenges and continue delivering value to patients and shareholders.