US market today: Pfizer posts strong first-quarter, sees boost from recent legal wins

Pfizer reported higher-than-expected sales and profit on Tuesday and said a patent extension for its Vyndamax heart drug and a recent favorable European court ruling on its COVID-19 vaccine would help secure stronger growth after 2028.

The latest results should provide some relief for ‌investors looking for new ⁠growth drivers ⁠to compensate for waning sales of COVID products compounded by narrowed U.S. recommendations for the vaccine and impending patent expirations.

While there are several drugs in ​the company's pipeline "that could make the story more interesting over time," investors will need to see more clinical data and reduced ​risk around those programs before sentiment improves, J.P.Morgan analyst Chris Schott said.


Pfizer's first obesity drug from its $10 billion purchase of Metsera, if successful in trials, would not reach the market before 2028.

Pfizer's first-quarter results saw a boost from new and acquired medicines, ​including cancer drug Padcev and migraine treatment Nurtec ODT.

Padcev brought in sales of $591 ⁠million in ‌the quarter, above analysts' average expectation of $534.5 million.

Citi analyst Geoff Meacham said the 22% growth ​in newly launched and acquired ​products demonstrates "the commercial portfolio's ability to offset ongoing COVID franchise declines."

Total sales of $14.45 billion ⁠for the first quarter topped estimates of $13.79 billion.

The company settled patent disputes with ​three generic drugmakers over Vyndamax last week, effectively delaying cheaper copies from entering the market ​through mid-2031.

CEO Albert Bourla said the settlements have the potential to change the growth profile of the company significantly after 2028, giving it confidence it will achieve a high-single-digit compounded annual growth rate for a five-year period beginning in 2029.

Last month's COVID court ruling in Europe, which requires Poland and Romania to accept 1.9 billion euros ($2.22 billion) worth of COVID vaccines made by Pfizer and partner BioNTech , will also help.

The New York-based drugmaker is also banking on new medicines, including obesity ‌drugs acquired through recent deals, to navigate near-term challenges as it aims to return to growth later this decade.

"Our R&D pipeline is advancing on multiple fronts... and I'm particularly encouraged by what we're ​seeing in oncology ​and obesity, two areas where I ⁠believe Pfizer is positioned to lead," Bourla said in a statement.

BEAT BUT NO RAISE

The company posted an adjusted profit of 75 cents per share, topping Wall Street estimates by 3 cents.

Despite the modest profit beat, Pfizer maintained its full-year forecast ​of $59.5 billion to $62.5 billion in revenue and a profit of $2.80 to $3.00 per share, and shares were down about 1% in early trading.

Sales of blood thinner Eliquis, which Pfizer sells with Bristol Myers Squibb, came in at $2.17 billion, compared with estimates of $1.76 billion.

Vyndamax generated $1.6 billion in sales in the first quarter, slightly below expectations.

Sales of COVID vaccine Comirnaty were $232 million, down 59% from a year earlier and below expectations of $434 million.

($1 = 0.8554 euros)