Pfizer forecasts $US54 billion in 2022 sales From Covid vaccine, treatment

Drugmaker in search for deals to boost pipeline of products.

Pfizers Covid-19 vaccine achieved $US12.5bn in sales in the latest quarter. Picture: AFP

As Pfizer forecasts strong sales this year for its Covid-19 vaccine and treatment, the drugmaker is on the hunt for deals to bolster its pipeline of experimental products.

Pfizer said on Tuesday night that surging sales of its Covid-19 treatment and continued demand for its shots should boost the company’s revenue to around $US100bn ($140bn) this year. The company estimated that sales of its antiviral pill Paxlovid will reach about $US22bn while the vaccine will add $US32bn.

That is on top of last year’s sales of $US36.8bn for the vaccine, also known as Comirnaty, the highest annual sales total for any pharmaceutical product. Paxlovid sales last year totalled $US76m.

The company has done a handful of recent acquisitions and partnerships to bolster its pipeline of drugs and vaccines, including several partnerships announced last month to boost its growing mRNA business. In December, Pfizer said it would acquire Arena Pharmaceuticals for $US6.7bn. Pfizer says it has invested $US25bn on business development since 2019.

With a growing chest of cash, Pfizer says its deal-making strategy will focus on drugs in early and late-stage development in areas the company is already focusing on, such as oncology, immunology and rare diseases. The New York-based drugmaker forecasts new deals to generate $US25bn in additional revenue by 2030. “We would like to deploy capital in scientific areas that we have expertise in so we can choose the right targets,” chief executive Albert Bourla said in an interview.

The prospect of further deal making could address concerns from analysts and investors who are watching what Pfizer does with its windfall from the pandemic. Sales from the pandemic vaccine and treatment will taper over time and the company faces drops in sales as innovative products lose their patent protection. Pfizer shares had fallen more than 4 per cent on Tuesday night following its earnings. The drop was because investors were expecting Pfizer’s guidance on this year’s earnings per share to be higher than $US6.35 to $US6.55, according to Evercore ISI analyst Umer Raffat.

“It’s our all-time record high,” chief financial officer Frank D’Amelio said, regarding the company’s guidance. He said analysts may have had higher expectations because of the pandemic products, but noted that Pfizer’s estimates only include finalised agreements.

Pfizer is in discussions with more than 100 countries for Paxlovid, so revenues are likely to come in higher than the $US22bn should it strike more agreements.

Paxlovid is cleared for use in people in the US 12 years and older who are at high risk of developing severe disease. The company said it expects to begin a study of the drug for children 6 years to 18 by the end of March. Results from studies of the drug in adults who are at standard risk for severe disease and household exposure should come later this year, Pfizer said.

The drug remains in short supply, and has been difficult to find in the US as Pfizer increases production to 120 million courses of treatment this year.

While Pfizer says Paxlovid works safely, and was effective against the Omicron variant in laboratory studies, it says it is working on a new treatment, too. The potential drug is designed to counter possible viral resistance to Paxlovid, require fewer pills in a course, and to work without the aid of the antiviral ritonavir that is given with Paxlovid, but carries safety risks for patients taking some common medications, according to Pfizer.

“We are not taking any chances; we’re going to stay on the forefront of the scientific efforts to battle the pandemic,” said Mr Bourla.

The company says it will begin studying the new Covid-19 treatment in the second half of this year.

While Pfizer says demand for the vaccine may wane, it expects growing demand for the treatment. Yet sales of both will combine for more than half of annual $US98bn to $US102bn Pfizer forecasted revenue for 2022. Pfizer says the virus won’t be fully eradicated in the near term because it is difficult to contain, has been shown to mutate, and that data shows natural infections don’t lead to long-term protection needed to prevent transmission and mutations.

The Covid-19 vaccine from Pfizer and partner BioNTech SE has grown into one of the most widely used shots globally. Pfizer’s booster shots have also seen the greatest use in the U.S. Nearly 50 million have been administered.

In the last three months of 2021, Pfizer’s vaccine achieved $US12.5bn in sales, contributing to overall revenue of $US23.84bn. A year earlier, Pfizer’s fourth-quarter revenue was $US11.63bn.

Adjusted earnings grew to $US1.08 a share, from 43c a share in the year-ago quarter. Analysts polled by FactSet had forecast adjusted earnings of 87c a share on sales of $US24.16bn.

The Wall Street Journal