• Full Year 2024 Revenue: $63.6 billion, up from $59.6 billion last year.
• Operational Revenue Growth (Excluding COVID Products): 12%, exceeding expectations of 9% to 11%.
• Full Year 2024 Adjusted Gross Margin: 74%.
• Full Year 2024 Diluted EPS: $1.41, up from $0.37 last year.
• Full Year 2024 Adjusted Diluted EPS: $3.11, up from $1.84 last year.
• Fourth Quarter 2024 Revenue: $17.8 billion, up from $14.6 billion in the same period last year.
• Fourth Quarter Non-COVID-19 Products Revenue: $13.7 billion, reflecting 11% operational year-over-year growth.
• Fourth Quarter Adjusted Gross Margin: Approximately 68%.
• Fourth Quarter Adjusted Operating Expenses: $7.3 billion, flat operationally.
• Fourth Quarter Adjusted SI&A Expenses: Decreased 4% operationally.
• Fourth Quarter Adjusted R&D Expenses: Increased 8% operationally.
• Fourth Quarter Adjusted Diluted EPS: $0.63.
• 2024 Capital Return to Shareholders: $9.5 billion via dividends.
• 2024 Internal R&D Investment: $10.8 billion.
• 2024 Deleveraging: $7.8 billion, including $2.3 billion in maturing debt and $5.5 billion in commercial paper.
• 2025 Revenue Guidance: $61 billion to $64 billion.
• 2025 Adjusted Diluted EPS Guidance: $2.80 to $3.00.
• 2025 Expected Net Savings from Cost Realignment: $4.5 billion by the end of 2025.

• Warning! GuruFocus has detected 7 Warning Signs with PFE.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pfizer Inc (NYSE:PFE) successfully integrated the Seagen business, enhancing its oncology capabilities.
• The company achieved strong financial performance with a 12% operational revenue growth excluding COVID products.
• Pfizer Inc (NYSE:PFE) maintained a leadership position in key markets, such as the top spot in the 2024 IQVIA US Field Force Ranking report.
• The company demonstrated robust pipeline progress with more than a dozen approvals and several pivotal study starts.
• Pfizer Inc (NYSE:PFE) achieved significant cost savings, contributing to expanded margins and strong shareholder returns.

Negative Points

• The COVID-19 portfolio showed stabilizing patterns with relatively low vaccination rates in the US.
• Pfizer Inc (NYSE:PFE) faces competitive pressure in the adult vaccine market, particularly from Capvaxive.
• The company anticipates a $1 billion revenue headwind due to the IRA Medicare Part D redesign.
• There are concerns about potential impacts from new market entrants on the Vyndaqel franchise.
• Pfizer Inc (NYSE:PFE) recorded approximately $2.9 billion in noncash intangible asset impairments related to several medicines.

Q & A Highlights

Q: What is the status of the danuglipron dose optimization data, and is there a possibility of dropping this version of the compound? A: Chris Boshoff, Chief Scientific Officer and President, Research & Development, stated that the data from the ongoing dose optimization and formulation study is expected in the first quarter. The future of danuglipron will be determined based on this data.

Q: Can you provide insights into Pfizer's COVID franchise revenue stabilization and future investments? A: Aamir Malik, Executive Vice President, Chief US Commercial Officer, explained that Paxlovid utilization tracks directly with disease outbreaks, and the commercial model is effective. For Comirnaty, vaccination rates were stable, and Pfizer improved its market share. The company has multiyear contracts internationally, making the revenue stream stable and predictable.

Q: What is Pfizer's approach to capital allocation and business development in 2025? A: David Denton, Executive Vice President, Chief Financial Officer, mentioned that Pfizer has the capacity for business development transactions in the $10 billion to $15 billion range in 2025. Andrew Baum, Chief Strategy and Innovation Officer, added that any expansion into new therapeutic areas would focus on breakthrough science and unmet medical needs.

Q: How is Pfizer's RSV market strategy evolving, and what are the growth catalysts? A: Aamir Malik noted that while the RSV market may not grow without policy changes, there are midterm growth catalysts such as policy updates, age expansion, and revaccination recommendations. Alexandre De Germay, Executive Vice President, Chief International Commercial Officer, highlighted strong execution in international markets, with significant vaccination rates in the UK and France.

Q: What is the strategy for Pfizer's breast cancer portfolio, particularly with CDK4 and vepdeg? A: Chris Boshoff explained that Pfizer's CDK4 inhibitor is expected to replace existing CDK4/6 inhibitors in early-line breast cancer. The company is also planning a study combining vepdeg with CDK4 in first-line ER-positive breast cancer, aiming to establish a strong position in the evolving landscape.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.