Full Press Release Details
PFIZER REPORTS RECORD FULL-YEAR 2022 RESULTS AND PROVIDES FULL-YEAR 2023 FINANCIAL GUIDANCE
Full-Year 2022 Revenues of $100.3 Billion, An All-Time High for Pfizer, Reflecting 30% Operational Growth
-Excluding Contributions from Paxlovid and Comirnaty(1), Revenues Grew 2% Operationally
Strong Fourth-Quarter 2022 Revenues of $24.3 Billion, Reflecting 13% Operational Growth
-Excluding Contributions from Paxlovid and Comirnaty(1), Revenues Grew 5% Operationally
Full-Year 2022 Reported Diluted EPS(2) of $5.47, Up 42% Year-Over-Year, and Adjusted Diluted EPS(3) of $6.58, Up 62% Year-Over-Year, Both of Which Represent All-Time Highs for Pfizer
Fourth-Quarter 2022 Reported Diluted EPS(2) of $0.87, Up 48% Year-Over-Year, and Adjusted Diluted EPS(3) of $1.14, Up 45% Year-Over-Year
-Includes a $0.32 Benefit from Lower Acquired IPR D Expenses Compared to Fourth-Quarter 2021
Provides Full-Year 2023 Revenue Guidance(4) of $67.0 to $71.0 Billion and Adjusted Diluted EPS(3) Guidance of $3.25 to $3.45
-Full-Year 2023 Revenues Excluding COVID-19 Products Expected to Grow 7% to 9% Operationally Compared to Full-Year 2022
-Full-Year 2023 Revenue Guidance for Comirnaty(1) of $13.5 Billion and Paxlovid of $8 Billion
-Revenues from COVID-19 Products Expected to Grow in 2024 After Reaching a Low Point in 2023 Due to Significant Government Supply on Hand to Start the Year
-Company Plans to Make Significant Incremental Investments in 2023 to Support Launch Products and R D Projects that are Expected to Drive its Long-Term Growth Ambitions
Continues to Make Progress on Pfizer's Unprecedented Number of Anticipated Launches of New Products and Indications, Including Recent Regulatory Filing Acceptances for Prevnar 20 Pediatric, its RSV Vaccine for Older Adults, Etrasimod, and its Pentavalent Meningococcal Vaccine
NEW YORK, NY, Tuesday, January 31, 2023 - Pfizer Inc. (NYSE PFE) reported exceptional financial results for fourth-quarter and full-year 2022 and provided 2023 financial guidance(4).
The fourth-quarter 2022 earnings presentation and accompanying prepared remarks from management as well as the quarterly update to Pfizer's R D pipeline can be found at www.pfizer.com.
EXECUTIVE COMMENTARY
Dr. Albert Bourla, Chairman and Chief Executive Officer, stated "2022 was a record-breaking year for Pfizer, not only in terms of revenue and earnings per share, which were the highest in our long history, but more importantly, in terms of the percentage of patients who have a positive perception of Pfizer and the work we do. As proud as we are about what we have accomplished, our focus is always on what is next. As we turn to 2023, we expect to once again set records, with potentially the largest number of new product and indication launches that we've ever
had in such a short period of time. We believe that the combination of these expected near-term launches, additional pipeline products that could potentially come to market in the medium-term, and anticipated contributions from business development, has the potential to set the company up for continued robust growth through the rest of this decade and beyond."
David Denton, Chief Financial Officer and Executive Vice President, stated "I am very pleased with our fourth-quarter performance, which was highlighted by strong operational growth from Paxlovid, Prevnar 20, Comirnaty, Vyndaqel and Eliquis, as well as the inclusion of Nurtec ODT Vydura and Oxbryta. For the full-year, we achieved revenues of over $100 billion, including 10 medicines or vaccines that generated revenues of more than $1 billion each, and all of this was accomplished despite operating in an environment in which foreign exchange reduced our revenues by 7%. Looking forward to 2023, we expect strong topline growth of 7% to 9% excluding our COVID-19 products and anticipated foreign exchange impacts. We are also increasing our investments behind our launch products and pipeline in order to help realize our growth goals for 2023 and beyond."
Results for the fourth-quarter and full-year 2022 and 2021(5) are summarized below.
| ($ in millions, except per share amounts) | Fourth-Quarter | Full-Year | ||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||
| Revenues | $ 24,290 | $ 23,838 | 2% | $ 100,330 | $ 81,288 | 23% | ||||||
| Reported Net Income (2) | 4,995 | 3,393 | 47% | 31,372 | 21,979 | 43% | ||||||
| Reported Diluted EPS (2) | 0.87 | 0.59 | 48% | 5.47 | 3.85 | 42% | ||||||
| Adjusted Income (3) | 6,551 | 4,543 | 44% | 37,717 | 23,196 | 63% | ||||||
| Adjusted Diluted EPS (3) | 1.14 | 0.79 | 45% | 6.58 | 4.06 | 62% |
| ($ in millions) | Fourth-Quarter | Full-Year | ||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||
| Total | Oper. | Total | Oper. | |||||||||||
| Global Biopharmaceuticals Business (Biopharma) (6) | $ 23,922 | $ 23,456 | 2% | 13% | $ 98,988 | $ 79,557 | 24% | 31% | ||||||
| Primary Care (6) | 17,348 | 16,225 | 7% | 20% | 73,023 | 52,029 | 40% | 49% | ||||||
| Specialty Care (6) | 3,566 | 3,989 | (11%) | (3%) | 13,833 | 15,194 | (9%) | (4%) | ||||||
| Oncology (6) | 3,007 | 3,242 | (7%) | (3%) | 12,132 | 12,333 | (2%) | 2% | ||||||
| Pfizer CentreOne | $ 368 | $ 382 | (4%) | 1% | $ 1,342 | $ 1,731 | (22%) | (19%) | ||||||
| TOTAL REVENUES | $ 24,290 | $ 23,838 | 2% | 13% | $ 100,330 | $ 81,288 | 23% | 30% |
Beginning in the first quarter of 2022, Pfizer implemented changes to its Adjusted(3) financial measures with respect to acquired in-process research and development (IPR D) costs and amortization of intangibles. More
information about these changes and their impact on the periods presented can be found in the Non-GAAP Financial Measure Adjusted Income section of this press release.
Beginning in the third quarter of 2022, Pfizer has made several organizational changes to further transform its operations to better leverage its expertise in certain areas and in anticipation of potential future new product or indication launches. These changes include establishing a new commercial structure within Biopharma focused on three broad customer groups (primary care, specialty care and oncology)(6), optimizing our end-to-end R D operations and further prioritizing our internal R D portfolio, as well as realigning certain enabling and platform functions across the organization to ensure alignment with this new operating structure.
Prior period amounts have been revised to conform to the current period presentation for all changes discussed above.
Business development activities(7) completed in 2021 and 2022(5) impacted financial results in the periods presented. Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts. References to operational variances pertain to period-over-period changes that exclude the impact of foreign exchange rates(8).
2023 FINANCIAL GUIDANCE(4)
Pfizer's 2023 financial guidance is presented below. This guidance includes management's expectations for contributions from the entire company, including Comirnaty(1) and Paxlovid.
| 2022 Actual Results | 2023 Financial Guidance | |||
| Revenues | $100.3 billion | $67.0 to $71.0 billion | ||
| Operational (8) Growth (Decline) vs. Prior Year | 30% | (33%) to (29%) | ||
| Growth (Decline) vs. Prior Year | 23% | (33%) to (29%) | ||
| Adjusted (3) Diluted EPS | $6.58 | $3.25 to $3.45 | ||
| Operational (8) Growth (Decline) vs. Prior Year | 71% | (50%) to (47%) | ||
| Growth (Decline) vs. Prior Year | 62% | (51%) to (48%) |
The midpoint of the guidance range for revenues reflects a 31% operational decrease compared to 2022 revenues. Company revenues are anticipated to be lower in 2023 than in 2022 due entirely to expected revenue declines for Pfizer's COVID-19 products.
Excluding COVID-19 products, the Company continues to expect 7% to 9% operational revenue growth in 2023.
Revenue guidance for Pfizer's COVID-19 products is as follows
Comirnaty(1) revenues of approximately $13.5 billion, down 64% from actual 2022 results.
Paxlovid revenues of approximately $8 billion, down 58% from actual 2022 results.
In contrast to previous years, guidance for both products is no longer based primarily on expected deliveries under existing signed or committed supply contracts, but now also includes, among other things, anticipated sales through traditional commercial markets in the U.S. in the second half of 2023.
The midpoint of the guidance range for Adjusted(3) diluted EPS reflects a 49% operational decrease compared to 2022, primarily driven by anticipated lower revenues from COVID-19 products, higher spending to support anticipated near-term launches and greater investments in certain late-stage pipeline projects.
Financial guidance for Adjusted diluted EPS(3) is calculated using approximately 5.75 billion weighted average shares outstanding, and assumes no share repurchases in 2023.
Other components of Pfizer's 2023 financial guidance are presented below.
| Adjusted (3) Cost of Sales as a Percentage of Revenues | 28.0% to 30.0% | |
| Adjusted (3) SI A Expenses | $13.8 to $14.8 billion | |
| Adjusted (3) R D Expenses | $12.4 to $13.4 billion | |
| Acquired IPR D Expenses (4) | Approximately $0.1 billion | |
| Adjusted (3) Other (Income) Deductions | Approximately $1.5 billion of income | |
| Effective Tax Rate on Adjusted (3) Income | Approximately 15.0% |
Pfizer's 2023 financial guidance is based on estimates and assumptions which are subject to significant uncertainties, particularly with regard to the anticipated performance of Comirnaty(1) and Paxlovid, for which patient demand could be significantly impacted by the infectiousness and severity of the predominant strains of the SARS-CoV-2 virus during 2023.
Key assumptions incorporated within the guidance follow.
| Key Assumptions for 2023 Guidance | Commentary | |
| Operational revenue growth compared to 2022 excluding COVID-19 products | 7% to 9% | Growth expected to be split among each of three categories launch, acquired and in-line products |
| Incremental SI A spend to support anticipated new launches, acquired assets and commercial launch of COVID-19 products | $1.3 billion | Investments to support short- and long-term growth aspirations |
| Incremental R D spend to support high-value pipeline programs and acquired assets | $1.5 billion | Includes, among others GLP-1, elranatamab, respiratory combination vaccines |
| Comirnaty - 2023 Guidance Assumptions | Commentary | |
| Estimated proportion of U.S. population that receives a vaccine | 24% | Compared to 31% in 2022 Decrease due to fewer primary vaccinations and lower compliance |
| Estimated number of doses per vaccinated person per year, on average | 1.3 doses | Compared to 1.4 doses in 2022 Decrease due to fewer primary vaccinations |
| Estimated Comirnaty market share - U.S. | 64% | Consistent with share achieved with most recent bivalent booster in 2022 |
| Estimated total demand for Comirnaty doses - U.S. (includes use of existing government supply) | 65 million doses | Compared to 92 million doses in 2022 |
| Assumed timing for delivery of the contracted doses of Comirnaty to the European Commission | Re-phased over multiple years (not all in 2023) | Negotiations on re-phasing of delivery timelines are ongoing |
| Paxlovid - 2023 Guidance Assumptions | Commentary | |
| Estimated number of total reported symptomatic infections - global*, excluding China | 112 million | Compared to 110 million in 2022 Increase due to expected waning of population immune protection due to reduced vaccination rates |
| Estimated proportion of symptomatic COVID-19 patients treated with an oral antiviral treatment - global*, excluding China | 17% | Compared to 12% in 2022 (partial year only) Increase due to greater awareness education and full-year implementation |
| Estimated Paxlovid share of oral antiviral market - global*, excluding China | 90% | Consistent with share achieved in 2022 |
| Estimated total demand for Paxlovid - global*, excluding China (includes use of existing government supply) | 17 million courses | Compared to 12 million courses in 2022 (partial year only) Increase due to broad product availability, greater awareness education and full-year implementation |
| Paxlovid sales to China | Assumes no sales after April 1, 2023 | Temporary National Reimbursement Drug List currently set to end on April 1, 2023 |
| General - 2023 Guidance Assumption | Commentary | |
| Estimated timing for transitioning Comirnaty and Paxlovid to commercial market in the U.S. | Second half of 2023 | Assumes prior absorption of existing government supply |
* Only includes markets where Paxlovid is available, and only includes individuals age 12+ 18+ where authorized approved in accordance with local labeling.
Actual 2022 market data is derived from a combination of public data sources and internal market research.
During full-year 2022, Pfizer deployed its capital in a variety of ways, which primarily include the following two broad categories
Reinvesting capital into initiatives intended to enhance the future growth prospects of the company, including
$11.4 billion invested in internal research and development projects, and
Approximately $26 billion invested in completed business development transactions, net of cash acquired, including approximately $12.7 billion(7) for the acquisition of Biohaven Pharmaceutical Holding Company Ltd. (Biohaven), $6.4 billion(7) for the acquisition of Arena Pharmaceuticals, Inc. and approximately $5.6 billion(7) for the acquisition of Global Blood Therapeutics, Inc. (GBT).
Returning capital directly to shareholders through a combination of
$9.0 billion of cash dividends, or $1.60 per share of common stock, and
$2.0 billion, which was used to repurchase 39.1 million shares on the open market in March 2022, at an average cost of $51.10 per share.
As of January 31, 2023, Pfizer's remaining share repurchase authorization is $3.3 billion. Current financial guidance does not anticipate any share repurchases in 2023.
Fourth-quarter 2022 diluted weighted-average shares outstanding used to calculate Reported(2) and Adjusted(3) diluted EPS were 5,743 million shares, a decrease of 26 million shares compared to the prior-year quarter, primarily due to shares repurchased in first-quarter 2022, partially offset by shares issued for employee compensation programs.
QUARTERLY FINANCIAL HIGHLIGHTS (Fourth-Quarter 2022 vs. Fourth-Quarter 2021)
Fourth-quarter 2022 revenues totaled $24.3 billion, an increase of $452 million, or 2%, compared to the prior-year quarter, reflecting operational growth of $3.0 billion, or 13%, as well as an unfavorable impact of foreign exchange of $2.5 billion, or 11%. Excluding contributions from Paxlovid and Comirnaty(1), company revenues grew $571 million, or 5%, operationally.
Fourth-quarter 2022 operational growth was primarily driven by
Comirnaty(1) in developed markets, up 67% operationally, driven primarily by the resumption of deliveries of the Omicron-adapted bivalent booster following a previously announced period of significantly lower deliveries of the original vaccine during third-quarter 2022, primarily involving the European Union (EU) and Japan
Paxlovid outside the U.S., which contributed $1.8 billion in revenues, driven by international launches in late 2021 and early 2022 following regulatory approvals or emergency use authorizations (EUAs)
Prevnar family (Prevnar 13 20) in the U.S., up 79%, driven primarily by strong patient demand following the launch of Prevnar 20 for the eligible adult population and favorable timing of Centers for Disease Control and Prevention (CDC) purchasing of the pediatric indication, partially offset by a reduction in revenues due to a one-time CDC inventory return program for the pediatric indication, the revenue impact of which is expected to be reversed in 2023 upon replenishment
Revenues from recently acquired products, Nurtec ODT Vydura and Oxbryta, which contributed $211 million and $73 million in global revenues, respectively
Vyndaqel family (Vyndaqel, Vyndamax, Vynmac) globally, up 31% operationally, driven by continued strong uptake of the transthyretin amyloid cardiomyopathy indication, primarily in developed Europe and the U.S., partially offset by a planned price decrease that went into effect in Japan in second-quarter 2022
Eliquis in the U.S., up 17%, driven primarily by continued oral anti-coagulant adoption and market share gains in non-valvular atrial fibrillation, as well as favorable changes in channel mix and
Prevenar 13 in emerging markets, up 22% operationally, driven primarily by strong growth in China and favorable timing of sales to GAVI, the Vaccine Alliance,
partially offset primarily by lower revenues for
Comirnaty(1) in emerging markets, down 81% operationally, primarily due to lower demand for COVID-19 vaccines
Xeljanz globally, down 28% operationally, driven primarily by declines in net price due to unfavorable changes in channel mix in the U.S. and decreased prescription volumes globally resulting from ongoing shifts in prescribing patterns related to label changes
Sutent globally, down 50% operationally, primarily driven by lower volume demand in Europe following its loss of exclusivity in January 2022
Ibrance globally, down 4% operationally, driven primarily by increases in the proportion of patients accessing Ibrance through the U.S. Patient Assistance Program, planned price decreases that recently went into effect in international developed markets and prior-year clinical trial purchases internationally, partially offset by higher volumes across multiple regions and
Eliquis internationally, down 7% operationally, primarily driven by declines in certain emerging markets.
GAAP Reported(2) Income Statement Highlights
SELECTED REPORTED COSTS AND EXPENSES(2)
| ($ in millions) | Fourth-Quarter | Full-Year | ||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||
| Total | Oper. | Total | Oper. | |||||||||||
| Cost of Sales (2) | $ 9,648 | $ 9,736 | (1%) | 11% | $ 34,344 | $ 30,821 | 11% | 21% | ||||||
| Percent of Revenues | 39.7 | % | 40.8 | % | N A | N A | 34.2 | % | 37.9 | % | N A | N A | ||
| SI A Expenses (2) | 4,644 | 4,104 | 13% | 17% | 13,677 | 12,703 | 8% | 11% | ||||||
| R D Expenses (2) | 3,615 | 3,445 | 5% | 7% | 11,428 | 10,360 | 10% | 12% | ||||||
| Acquired IPR D Expenses (2) | 73 | 2,469 | (97%) | (97%) | 953 | 3,469 | (73%) | (73%) | ||||||
| Other (Income) Deductions--net (2) | ( 846) | ( 835) | 1% | 13% | 217 | ( 4,878) | * | * | ||||||
| Effective Tax Rate on Reported Income (2) | 4.4% | 6.5 | % | 9.6 | % | 7.6 | % |
* Indicates calculation not meaningful.
Fourth-quarter 2022 Cost of Sales(2) as a percentage of revenues decreased 1.1 percentage points compared with the prior-year quarter. The decrease was primarily driven by favorable changes in sales mix, including increased sales of Paxlovid and higher alliance revenues, as well as favorable impacts resulting from changes in foreign exchange rates, partially offset by approximately $600 million and approximately $200 million of inventory write-offs related to Paxlovid and Comirnaty(1), respectively, and higher operational revenues for Comirnaty(1).
SI A Expenses(2) increased 17% operationally compared with the prior-year quarter, primarily reflecting increased investments to support Paxlovid, Comirnaty(1) and recently acquired and launched products.
Fourth-quarter 2022 R D Expenses(2) increased 7% operationally compared with the prior-year quarter, primarily driven by increased costs to support various vaccine and oncology programs, as well as spending related to recently acquired assets, partially offset by lower spending on programs to treat COVID-19 and certain other late-stage clinical programs.
Acquired IPR D Expenses(2) decreased 97% operationally compared with the prior-year quarter. The acquisitions of Biohaven and GBT in fourth-quarter 2022 qualified as business combinations under U.S. Generally Accepted Accounting Principles (GAAP), resulting in no Acquired IPR D Expenses(2), while the acquisition of Trillium Therapeutics Inc. in fourth-quarter 2021 was accounted for as an asset acquisition, giving rise to approximately $2.1 billion in Acquired IPR D Expenses.
Other income--net(2) increased 13% operationally in fourth-quarter 2022 compared with fourth-quarter 2021, primarily driven by net gains on equity securities in fourth-quarter 2022 versus net losses on equity securities recognized in the prior-year quarter and lower net interest expense, partially offset by lower net periodic benefit credits associated with pension and postretirement plans and higher asset impairment charges.
Pfizer's effective tax rate on Reported income(2) for fourth-quarter 2022 decreased compared to the prior-year quarter primarily due to a favorable change in the jurisdictional mix of earnings and global income tax resolutions, partially offset by the non-recurrence of tax benefits associated with certain tax initiatives.
Adjusted(3) Income Statement Highlights
SELECTED ADJUSTED(3) COSTS AND EXPENSES
| ($ in millions) | Fourth-Quarter | Full-Year | ||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||
| Total | Oper. | Total | Oper. | |||||||||||
| Adjusted (3) Cost of Sales | $ 9,475 | $ 9,710 | (2%) | 9% | $ 34,096 | $ 30,685 | 11% | 20% | ||||||
| Percent of Revenues | 39.0 | % | 40.7 | % | N A | N A | 34.0 | % | 37.7 | % | N A | N A | ||
| Adjusted (3) SI A Expenses | 4,414 | 3,932 | 12% | 17% | 13,049 | 12,071 | 8% | 11% | ||||||
| Adjusted (3) R D Expenses | 3,610 | 3,436 | 5% | 7% | 11,409 | 10,344 | 10% | 12% | ||||||
| Adjusted (3) Other (Income) Deductions--net | ($656) | ($728) | (10%) | 2% | ($1,954) | ($2,475) | (21%) | (13%) | ||||||
| Effective Tax Rate on Adjusted Income (3) | 11.1 | % | 9.5 | % | 11.7 | % | 14.5 | % |
Reconciliations of certain Reported(2) to non-GAAP Adjusted(3) financial measures and associated footnotes can be found in the financial tables section of this press release.
FULL-YEAR REVENUE SUMMARY (Full-Year 2022 vs. Full-Year 2021)
Full-year 2022 revenues totaled $100.3 billion, an increase of $19.0 billion, or 23%, compared to full-year 2021, reflecting operational growth of $24.6 billion, or 30%, and an unfavorable impact of foreign exchange of $5.5 billion, or 7%. Excluding the revenue growth contributed by Paxlovid and Comirnaty(1), revenues for the full-year grew 2% operationally. Operational growth compared to the prior year was driven primarily by
Global sales of Paxlovid
Strong growth of Comirnaty(1) in developed markets
The launch of Prevnar 20 in the U.S. for the adult population
Continued strong growth of Eliquis globally
Vyndaqel family globally, partially offset by a planned price decrease in Japan and
Newly acquired products Nurtec ODT Vydura and Oxbryta,
partially offset primarily by lower revenues for
Comirnaty(1) in emerging markets
Xeljanz, Chantix and Sutent globally and
Ibrance in developed Europe and the U.S.
RECENT NOTABLE DEVELOPMENTS (Since November 1, 2022)
Product Developments