Pfizer’s profit surges 59% on strong Covid-19 vaccine sales

The Covid-19 shot made by Pfizer and its German partner BioNTech drew in sales worth $7.8bn in the second quarter

Pfizer sharply increased its 2021 projection for revenues tied to its Covid-19 vaccine and also lifted its full-year profit outlook. AFP

Pfizer reported a 59 per cent annual jump in second-quarter net profit as the company increased its forecast for the Covid-19 vaccine sales.

The company’s net profit increased to $5.6 billion, over $2bn more than the same period last year.

Revenue soared nearly 92 per cent yearly to $18.9bn in three months to June 30. It marginally exceeded the analysts’ expectation of $18.7bn.

“The second quarter was remarkable in a number of ways. Most visibly, the speed and efficiency of our efforts with BioNTech to help vaccinate the world against Covid-19 have been unprecedented, with now more than a billion doses … been delivered globally, Albert Bourla, chairman and chief executive of the company, said.

The shot developed by Pfizer and German pharmaceutical company BioNTech against Covid-19 added $7.8bn in the company’s sales in the second quarter, surpassing the analysts’ expectation of $7.05bn.

The New York-based drug maker now expects the shots to add $33.5bn this financial year, up from the previous estimate of $26bn, as the new delta variant spreads and researchers contemplate on suggesting booster shots to improve immunity.

Pfizer said it is developing a booster dose for the delta variant. It expects to start clinical studies testing its delta variant vaccine from next month.

“Looking forward, we remain highly confident in our ability to achieve at least a 6 per cent compound annual growth rate through 2025 … and intend to build upon our recent successes by continuing to follow the science, trust in our people and remain focused on delivering breakthroughs,” Mr Bourla added.

Pfizer said it is investing in areas “where we can win”. “We are scaling emerging technology platforms, maintaining patient centricity … and reducing approval development cycle times,” it said.

The company now expects its full-year revenue to hover in the range of $78bn to $80bn, compared with $70.5bn to $72.5bn announced earlier.

The adjusted earnings per share are projected to reach $3.9 to $4.05, up from the previous prediction of $3.5 to $3.6.

The second-quarter earnings highlighted the “underlying strength of our business, with consistent and solid growth coming from multiple products and categories”, Frank D’Amelio, chief financial officer and executive vice president for global supply at Pfizer, said.

“As a result of updates to our expectations for our business … we are increasing our 2021 financial guidance ranges for revenues and adjusted diluted EPS for the second quarter in a row,” he added.

All units of Pfizer showcased good growth in the second quarter.

Pfizer’s internal medicine unit sales surged 5 per cent yearly to $2.4bn in the three-month period. Revenue from the oncology unit increased by almost 19 per cent on an annual basis to $3.1bn.

The company’s inflammation and immunology department added more than $1bn in sales, a yearly increase of 9 per cent. Its hospital unit contributed $2.2bn in sales, almost 21 per cent more than the prior year period.