Pfizer beats earnings estimates, targets $2.5 billion in additional cost cuts

GENEVA: Pfizer on Tuesday reported better-than-expected second-quarter results, boosted by strong demand for blood thinner Eliquis, and unveiled plans for an additional $2.5 billion in savings through its ongoing cost-cutting efforts.
Pfizer said the additional savings, expected to be realized between 2027 and 2029, will build on existing cost-cutting efforts as it seeks to offset declining COVID-related revenue and restore sustainable growth.
The company is also counting on newer medicines to lessen its ‌dependence on ‌aging blockbuster drugs, while investors are watching ‌for ⁠signs that its $10 ⁠billion acquisition of Metsera can help establish a meaningful foothold in the fast-growing obesity market.
Pfizer has said it expects to return to stronger growth after 2028.
CEO Albert Bourla struck an optimistic tone, saying the company’s “launched and acquired products performed well ... our obesity program is advancing ⁠with meaningful momentum.”
Revenue from acquired products ‌rose 25 percent on an ‌operational basis during the quarter.
Eliquis sales rose 19 percent on an ‌operational basis, driven by higher US net pricing from ‌lower rebates and a favorable channel mix, along with stronger demand across global markets.
Sales of Eliquis, which Pfizer sells with Bristol Myers Squibb, were $2.43 billion in the quarter, ‌above analysts’ estimates of $1.93 billion.
Higher sales of Eliquis and cancer therapy Padcev helped offset weaker ⁠demand for ⁠the company’s COVID products.
The US drugmaker now expects annual sales of $60.5 billion to $62.5 billion, up from $59.5 billion to $62.5 billion forecast previously.
It reaffirmed its annual profit forecast to reflect a $650 million impact related to a licensing deal worth up to $10.5 billion with China’s Innovent Biologics.
On an adjusted basis, the company reported a profit of 77 cents per share, compared with analysts’ estimates of 68 cents per share, according to data compiled by LSEG.
Shares of the drugmaker were flat in premarket trading.