Press Release: Pfizer Provides Full-Year 2025 Guidance and Reaffirms Full-Year 2024 Guidance

Dow Jones12-17

Pfizer Provides Full-Year 2025 Guidance and Reaffirms Full-Year 2024 Guidance

   -- 
 Full-Year 2025 Revenue Guidance(1) Range of $61.0 to $64.0 Billion 
 
 
   -- 
 Full-Year 2025 Adjusted(2) Diluted EPS Guidance Range of $2.80 to 
      $3.00 
 
 
   -- 
 Expect Full-Year 2025 Adjusted(2) Diluted EPS Operational(3) Growth of 
      10% to 18% from the Midpoint of 2024 Guidance After Adjusting for 2024 
      Non-Recurring Items(4) 
 
 
   -- 
 Achieved Goal of $4.0 Billion in Net Cost Savings Through 2024 and 
      Anticipate an Additional $500 Million in Savings in 2025 from Ongoing 
      Cost Realignment Program 
 
 
   -- 
 First Phase of Manufacturing Optimization Program On Track to Deliver 
      Initial Net Cost Savings in the Latter Part of 2025, Toward Goal of 
      Improving Gross Margin Performance 
 
NEW YORK--(BUSINESS WIRE)--December 17, 2024-- 

Pfizer Inc. $(PFE)$ today provided its full-year 2025 guidance(1) and reaffirmed its October 29, 2024 full-year 2024 guidance(1) . The accompanying presentation can be found at www.pfizer.com/investors.

Full-Year 2025 Revenue Guidance(1)

Pfizer anticipates full-year 2025 revenues to be in the range of $61.0 to $64.0 billion, which includes the expectation of revenues from our COVID-19 products in 2025 being largely consistent with 2024 after excluding approximately $1.2 billion of non-recurring revenue for Paxlovid in 2024. Pfizer expects full-year 2025 operational(3) revenue growth, year-over-year, in a range of approximately flat to 5% from the midpoint of 2024 baseline guidance(4) , which excludes 2024 non-recurring items(4) .

2025 Revenue guidance takes into consideration the anticipated net unfavorable impact to revenue of approximately $1 billion, year-over-year, related to the Inflation Reduction Act (IRA) Part D Redesign changes that take effect in 2025. The IRA makes significant changes to the Medicare Part D benefit design, which will impact Pfizer revenue in 2025, including: an expected favorable impact from the $2,000 annual out-of-pocket cap and new Prescription Payment Plan, more than offset by an expected unfavorable impact from the sunsetting of the Coverage Gap Discount Program and the addition of new manufacturer discounts in the initial and catastrophic coverage phases.

Full-Year 2025 Adjusted(2) SI&A and Adjusted(2) R&D Guidance(1)

Pfizer anticipates full-year 2025 Adjusted(2) SI&A expenses to be in the range of $13.3 to $14.3 billion and full-year 2025 Adjusted(2) R&D expenses to be in the range of $10.7 to $11.7 billion. Consequently, total 2025 Adjusted(2) SI&A and R&D expenses are expected to be in the range of $24.0 to $26.0 billion. This range reflects approximately $4.0 billion in net operating expense savings from our cost realignment program achieved through the end of 2024 and anticipates an additional $500 million of savings in 2025.

Full-Year 2025 Adjusted(2) Diluted EPS Guidance(1)

Pfizer anticipates full-year 2025 Adjusted(2) diluted EPS to be in a range of $2.80 to $3.00, reflecting expected operational(3) growth of 10% to 18%, year-over-year, from the midpoint of our 2024 baseline guidance(4) , which excludes 2024 non-recurring items(4) . 2025 Adjusted(2) diluted EPS guidance primarily reflects our expected revenues, anticipated operating margin improvement from continued cost management, and the non-recurrence of the following items that are expected to favorably impact 2024 Adjusted(2) diluted EPS by approximately $0.30:

   -- 
 During 2024, Pfizer recognized Paxlovid revenue of $1.2 billion from 
      two one-time items: $771 million from a U.S. Government revenue credit 
      true-up and $442 million from the fulfillment of our obligated delivery 
      of one million treatment courses to the U.S. Strategic National 
      Stockpile; 
 
 
   -- 
 With the reduction of our Haleon ownership percentage in the fourth 
      quarter of 2024, Haleon equity method income will no longer be included 
      in Adjusted(2) earnings in 2025; and 
 
 
   -- 
 Our 2024 tax rate on adjusted income was favorably impacted by the 
      timing of Pillar 2 and, to a lesser extent, audit settlements. 
 

A comparison of Pfizer's 2024 Financial Guidance to its 2025 Financial Guidance(1) is presented below.

 
                         2024                          2024 Guidance(4) 
                    Guidance(1) (as       2024        (Baseline excluding      2025 
                    of December 17,   Non-Recurring      non-recurring       Financial 
                         2024)          Items(4)            items)          Guidance(1) 
-----------------  ----------------  --------------  --------------------  ------------ 
 Revenues ($ in                                                              $61.0 -- 
 billions)          $61.0 -- $64.0      ($1.2)         $59.8 -- $62.8        $64.0 
-----------------  ----------------  --------------  --------------------  ------------ 
 Adjusted(2) SI&A 
 Expenses ($ in                                                              $13.3 -- 
 billions)          $13.8 -- $14.8                                            $14.3 
-----------------  ----------------  --------------  --------------------  ------------ 
 Adjusted(2) R&D 
 Expenses ($ in                                                              $10.7 -- 
 billions)          $11.0 -- $12.0                                            $11.7 
-----------------  ----------------  --------------  --------------------  ------------ 
 Effective Tax 
  Rate on 
  Adjusted(2) 
  Income                 13%                                                  15% 
-----------------  ----------------  --------------  --------------------  ------------ 
 Adjusted(2)        $2.75 -- $2.95      ($0.30)        $2.45 -- $2.65       $2.80 -- 
  Diluted EPS                                                                 $3.00 
-----------------  ----------------  --------------  --------------------  ------------ 
 

Pfizer's expected 2025 operational(3) revenue and Adjusted(2) diluted EPS growth, year-over-year, versus its 2024 baseline guidance(4) midpoint is presented below.

 
                      2024 Guidance(4) 
                    (Baseline excluding 
                       non-recurring        2025 Financial      Operational 
                           items)            Guidance(1)         Growth(5) 
-----------------  ---------------------  -----------------  ----------------- 
 Revenues ($ in       $59.8 -- $62.8 
 billions)            (midpoint $61.3)     $61.0 -- $64.0      flat to  5% 
-----------------  ---------------------  -----------------  ----------------- 
 Adjusted(2)          $2.45 -- $2.65 
  Diluted EPS         (midpoint $2.55)     $2.80 -- $3.00      10% to  18% 
-----------------  ---------------------  -----------------  ----------------- 
 

Financial guidance for Adjusted(2) diluted EPS is calculated using approximately 5.74 billion weighted average shares outstanding, and assumes no share repurchases in 2024 or 2025.

Executive Commentary

Dr. Albert Bourla, Pfizer Chairman and Chief Executive Officer, stated: "Pfizer is in a strong position to continue making a positive impact for patients and delivering on our financial commitments in 2025. Our team will build on a year of disciplined execution in 2024 and our product portfolio remains strong.

"We also expect to continue improving our operating margins with focused financial discipline. We've been successful in delivering on our goal of $4 billion in net operating expense savings through 2024 from our cost realignment program, with an additional $500 million still expected to come in 2025. Additionally, in support of our ongoing efforts to improve gross margin performance, we will work to make additional progress with our Manufacturing Optimization Program in the coming year.

"As we look forward, we are confident in our future. With our clear strategic roadmap, a robust pipeline of potential innovative medicines and vaccines and a talented team laser-focused on execution, we believe we are on course to deliver significant shareholder value."

Pfizer intends to provide additional commentary in an analyst webcast scheduled for 8:30 a.m. EST, Tuesday, December 17, 2024; details can be found at www.investors.pfizer.com.

 
(1)  Pfizer does not provide guidance for U.S. generally accepted accounting 
     principles (GAAP) Reported financial measures (other than revenues) or a 
     reconciliation of forward-looking non-GAAP financial measures to the most 
     directly comparable GAAP Reported financial measures on a forward-looking 
     basis because it is unable to predict with reasonable certainty the 
     ultimate outcome of unusual gains and losses, certain acquisition-related 
     expenses, gains and losses from equity securities, actuarial gains and 
     losses from pension and postretirement plan remeasurements, potential 
     future asset impairments and pending litigation without unreasonable 
     effort. These items are uncertain, depend on various factors, and could 
     have a material impact on U.S. GAAP Reported results for the guidance 
     period. 
 
     Financial guidance for full-year 2025 reflects the following: 
 
     Does not assume the completion of any business development transactions 
     not completed as of December 16, 2024. Reflects an anticipated negative 
     revenue impact of approximately $0.6 billion due to recent and expected 
     generic and biosimilar competition for certain products that have 
     recently lost patent or regulatory protection or that are anticipated to 
     lose patent or regulatory protection. Exchange rates assumed are actual 
     rates at mid-November 2024. Guidance for Adjusted(2) diluted EPS assumes 
     diluted weighted-average shares outstanding of approximately 5.74 billion 
     shares, and assumes no share repurchases in 2025. 
     Our reaffirmed financial guidance for full-year 2024 reflects assumptions 
     that are consistent with those outlined in Note (1) within Pfizer's Q3-24 

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December 17, 2024 06:45 ET (11:45 GMT)

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