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Pfizer Balances Cost Cuts and Pipeline Challenges Amidst Post-Pfizer Balances Cost Cuts and Pipeline Challenges Amidst Post-Pandemic Revenue Declines

Apr 29, 2025 (14 hr ago)
Neutral
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Pfizer reported mixed Q1 results, balancing cost discipline and new product launches against pandemic-era revenue declines and operational headwings.

Strategic Initiatives & Cost Management

  • Pfizer reaffirmed 2025 revenue guidance of $61-64B and EPS of $2.80-3.80, while increasing cost-cutting targets to $7.7B from $6B.1
  • CEO Albert Bourla emphasized R&D discipline to prioritize high-potential therapies amid market volatility.1

Product Portfolio Challenges

  • The company faces a $17B annual revenue hole from declining pandemic-era products like Paxlovid and Comirnaty.1
  • Oncology drug Padcev aims to offset losses with $3.3B annual sales potential, but halted obesity trial delays growth opportunities.1

Financial Performance

  • Q1 revenue fell 7.8% YoY to $13.72B, missing estimates, with operating margin dropping to 21.7% from 31.3%.3
  • Organic revenue growth improved to 6% YoY from a 19% decline last year, signaling stabilization.3

Earnings Results

  • Q1 EPS of $0.92 beat estimates by 43.75%, but shares outstanding rose 1.7% over five years, diluting EPS growth.3
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