Pfizer (PFE) Q1 2022 earnings summary

Executive summary

• Q1 revenue rose 82% operationally YoY, driven by Comirnaty, Paxlovid and other growth products.

• Innovative medicines and vaccines reached an estimated 468 million patients worldwide, up 140% YoY.

Financial highlights

• Excluding Comirnaty direct and alliance revenue and Paxlovid, operational revenue grew 2%; growth would have been ~5% excluding fewer selling days and loss-of-exclusivity impacts.

• Reported diluted EPS grew 59%; adjusted diluted EPS grew 76% operationally in Q1.

• Adjusted cost of sales reduced gross margin by ~10 percentage points YoY; higher COVID vaccine sales accounted for 14 points of pressure, partly offset by favorable mix.

• FX reduced revenue growth by 5% and adjusted diluted EPS by 4%, or $0.04, in Q1.

Outlook and guidance

• FY22 revenue guidance remains $98B-$102B, representing 27% operational growth at the midpoint; the range includes an additional $2B anticipated FX impact.

• FY22 Comirnaty revenue is expected to be ~$32B and Paxlovid sales ~$22B; ex-COVID revenue is expected to be ~$46B at the midpoint, with 5% operational growth.

• Adjusted diluted EPS guidance is $6.25-$6.45, or 61% operational growth at midpoint; updated assumptions include +$0.10 operationally, offset by FX (-$0.11) and acquired IPR&D (-$0.11).

• FY22 adjusted cost of sales guidance is 32%-34%; adjusted R&D guidance increased by $500M, and acquired IPR&D expense includes $900M.

• Paxlovid production targets remain 24M courses in Q2, 30M in H1 and 120M for FY22; all planned quantities are allocated to existing orders.