Pfizer Reports 31% Revenue Growth, Net Income Turnaround in Q3 2024

Pfizer Inc. reported significant financial improvements in its latest 10-Q filing for the quarter ending September 29, 2024. Total revenues reached $17,702 million, a 31% increase from $13,491 million in the same quarter of the previous year. This growth was driven by strong sales of Paxlovid and products acquired from Seagen, alongside a notable operational increase of 32%. Alliance revenues also rose to $1,900 million from $1,645 million year-over-year.

The company experienced a remarkable turnaround in profitability, with net income attributable to common shareholders soaring to $4,465 million, compared to a net loss of $(2,382) million in Q3 2023. Earnings per share (EPS) improved to $0.79 from a loss of $(0.42) in the prior year. For the nine months ended September 29, 2024, net income was $7,621 million, up from $5,488 million in the same period of 2023.

Pfizer's total assets decreased to $219,476 million from $226,501 million at the end of 2023, with cash and cash equivalents dropping to $1,092 million from $2,853 million. However, trade accounts receivable increased to $14,451 million, and inventories rose to $11,721 million, reflecting ongoing operational adjustments.

The company has been actively managing costs, reporting a decrease in cost of sales by $4 billion in Q3 2024 compared to the same quarter in 2023, primarily due to the non-recurrence of a $5.6 billion charge for inventory write-offs related to COVID-19 products. Selling, informational, and administrative expenses remained stable, while research and development expenses decreased, reflecting ongoing cost realignment efforts.

Strategically, Pfizer completed the acquisition of Seagen for $44.2 billion in December 2023, which is expected to generate approximately $1 billion in annual cost synergies by 2026. The company also reported a $3.5 billion gain from the partial sale of its investment in Haleon, reducing its ownership from 32% to approximately 23%. This divestiture aligns with Pfizer's capital allocation priorities.

In terms of operational challenges, Pfizer's manufacturing facility in Rocky Mount, NC, was impacted by a tornado in July 2023, but supply has since recovered. The company is transitioning its COVID-19 products, including Paxlovid and Comirnaty, to commercial markets, with expectations of significant revenue contributions in the fourth quarter of 2024.

Overall, Pfizer's financial performance reflects a robust recovery and strategic positioning for future growth, despite ongoing market challenges and operational adjustments.