Pfizer Beats Estimates Despite COVID Product Decline

Pfizer's fourth-quarter profits exceeded expectations, driven by strong demand for older drugs despite declining COVID-19 product sales. The company anticipates revenue challenges up to 2029 due to patent expirations and shifts focus to new medications, such as acquired obesity treatments, to rejuvenate growth.

Pfizer reported higher-than-expected fourth-quarter profits on Tuesday, buoyed by continued demand for long-standing medications like the blood thinner Eliquis. This comes as the pharmaceutical giant grapples with decreasing sales of its COVID-19 products.

The upbeat earnings report arrives amid a challenging transition phase for Pfizer, which is confronting a downturn in COVID-mediated revenue and looming expirations of patents on several key drugs, potentially paving the way for generic competitors. Looking to the future, Pfizer does not project revenue growth to resume until around 2029. To navigate this terrain, the company is focusing on innovations, particularly in acquiring new medications, such as obesity treatments, aimed at securing its financial rebound.

Notably, Pfizer's heart and cancer drugs bolstered the company's financial performance, helping achieve $17.56 billion in quarterly sales, surpassing analysts' forecasts of $16.95 billion. Adjusted earnings stood at 66 cents per share, exceeding analysts' predictions of 57 cents per share.

(With inputs from agencies.)