Pfizer Provides Full-Year 2025 Guidance and Reaffirms Full-Year 2024 Guidance
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Full-Year 2025 Revenue Guidance(1) Range of $61.0 to $64.0 Billion
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Full-Year 2025 Adjusted(2) Diluted EPS Guidance Range of $2.80 to
$3.00
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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)
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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
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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:
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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 $442 million from the fulfillment of our obligated delivery
of one million treatment courses to the U.S. Strategic National
Stockpile;
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With the reduction of our Haleon ownership percentage in the fourth
quarter of 2024, Haleon equity method income will no longer be included
in Adjusted(2) earnings in 2025; and
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Our 2024 tax rate on adjusted income was favorably impacted by the
timing of Pillar 2 and, to a lesser extent, audit settlements.
A comparison of Pfizer's 2024 Financial Guidance to its 2025 Financial Guidance(1) is presented below.
2024 2024 Guidance(4)
Guidance(1) (as 2024 (Baseline excluding 2025
of December 17, Non-Recurring non-recurring Financial
2024) Items(4) items) Guidance(1)
----------------- ---------------- -------------- -------------------- ------------
Revenues ($ 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 $3.00
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Pfizer's expected 2025 operational(3) revenue and Adjusted(2) diluted EPS growth, year-over-year, versus its 2024 baseline guidance(4) midpoint is presented below.
2024 Guidance(4)
(Baseline excluding
non-recurring 2025 Financial Operational
items) Guidance(1) Growth(5)
----------------- --------------------- ----------------- -----------------
Revenues ($ 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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