Pfizer (PFE) Q4 2022 earnings summary

Executive summary

• FY 2022 revenue exceeded $100B for the first time; more than 1.3B patients worldwide were treated with medicines and vaccines.

• Q4 revenue growth was led by Comirnaty in developed markets, Paxlovid outside the U.S. and the U.S. adult launch of Prevnar 20.

Financial highlights

• Q4 revenue grew 13% operationally; excluding COVID-19 product direct sales and alliance revenue, growth was 5%, or ~3% excluding Biohaven and Global Blood Therapeutics products as well.

• Q4 reported diluted EPS rose 48% to $0.87; Adjusted diluted EPS increased 69% operationally to $1.14, including a $0.32 benefit from lower acquired IPR&D expenses YoY.

• FX reduced Q4 revenue by $2.5B, or 11%, and Adjusted diluted EPS by $0.19, or 24%; FY FX impact was $5.5B, or 7%, on revenue and $0.36, or 9%, on Adjusted EPS.

Outlook and guidance

• 2023 revenue guidance is $67–$71B, with a 31% operational decline at the midpoint; revenue excluding COVID products is expected to grow 7–9% operationally.

• COVID-19 products are expected to reach a 2023 low before potential growth from 2024; U.S. commercial sales of Comirnaty and Paxlovid are expected to begin in H2 2023.

• Potential internal launches could generate risk-adjusted 2030 revenue of $20B, more than offsetting expected $17B LOE losses for 2025–2030; BD activity targets at least $25B of risk-adjusted 2030 revenue.

• 2025–2030 revenue CAGR is projected at ~6% without additional pipeline successes and could exceed 10% if some candidates succeed.