Pfizer sees big reversal after reporting record high revenues, earnings in 2022

US pharmaceutical and biotechnology corporation Pfizer Inc said it expected to see a sharp year-on-year drop in revenues and earnings in 2023 following record highs in 2022.

Pfizer on Tuesday reported US$100.3 billion in revenues and US$6.58 of adjusted diluted earnings per share (EPS) in 2022, both of which hit record highs.

Pfizer's annual revenues and adjusted diluted EPS jumped 23 percent and 62 percent year on year, respectively.

Much of the growth was driven by sales from oral antiviral treatment Paxlovid and COVID-19 vaccine Comirnaty.

Excluding contributions from Paxlovid and Comirnaty, Pfizer's revenues grew 2 percent operationally in 2022.

As the United States is likely to end the COVID-19 public health emergency in May this year, less governmental spending around the world dampens the sales prospects of medical products related to COVID-19.

Pfizer expects to have US$67 billion to 71 billion of revenues and US$3.25 to US$3.45 of adjusted diluted EPS in 2023, down 29 percent to 33 percent and 48 percent to 51 percent, respectively.

The forecasts of revenues and adjusted diluted EPS are even materially lower than that in 2021.

Notably, Pfizer predicts around US$8 billion and US$13.5 billion of revenues from Paxlovid and Comirnaty in 2023, 58 percent and 64 percent lower than that in 2022, respectively.

However, Pfizer expects to see a 7 percent to 9 percent of revenue expansion in 2023 excluding COVID-19 products and anticipated foreign exchange impacts.

Pfizer could record the largest number of new product and indication launches in 2023, according to Albert Bourla, chairman and chief executive officer of Pfizer.