Pfizer's Revenue Leap: A Look Behind the Numbers of the Healthcare Giant

Pfizer reported impressive revenues in its latest quarterly report. The healthcare conglomerate recorded a 31% increase in revenue in the third quarter of 2024 compared to the previous year. This significant increase is primarily attributed to sales of the Covid-19 drugs Paxlovid and Comirnaty, which together accounted for nearly half of the annual growth. Specifically, Paxlovid generated $2.7 billion, while Comirnaty contributed $1.4 billion to the total quarterly revenue of $17.7 billion. Despite these impressive figures, the stock price remained largely unaffected, although trading volume rose to levels not seen since the acquisition of Seagen in December 2023. The current market value of Pfizer stands at $161 billion. Nevertheless, the involvement of the activist hedge fund Starboard Value, which acquired a one-billion-dollar stake in Pfizer, could spark further discussions. Their criticism of the company's management and capital policy has already initiated debates. Pfizer CEO Albert Bourla responded cautiously to Starboard's allegations in a quarterly call. While he agreed with some points, he sharply refuted others and emphasized the strategic importance of the acquisitions of Seagen and BioNTech. Furthermore, Bourla referred to organizational changes already made within the company to meet the challenges. In contrast to the impressive growth rate in the third quarter, overall growth for the first nine months of 2024 was rather moderate at 2%. Consequently, Pfizer has raised its revenue forecasts for the year to $61 to $64 billion, representing an increase of 9 to 11% compared to 2023. The expected revenues for Comirnaty and Paxlovid are projected to be $5 billion and $5.5 billion, respectively. Pfizer also generated additional revenue through the acquisition of Seagen, which positively contributed $854 million to the quarterly report. Furthermore, drugs such as Eliquis, Xtandi, Vydura, and the Vyndaqel product family recorded significant revenue increases compared to the previous year, underscoring the company's innovative strength.