Pfizer (NYSE:PFE) reported lower fourth-quarter revenue as demand for its COVID-19 treatments continued to fade, but stronger performance in other areas—particularly vaccines for respiratory diseases—helped the pharmaceutical group beat market expectations.
The company, which benefited massively from pandemic-driven demand for its COVID shots and antiviral therapies, has been working to rebalance its portfolio as vaccination rates and infection levels normalize.
Sales of Pfizer’s COVID vaccine fell 35% year on year in the quarter, while revenue from its antiviral pill declined by 70%, largely reflecting reduced usage and lower infection rates in the United States.
That weakness was partly offset by a sharp increase in sales of Abrysvo, Pfizer’s respiratory syncytial virus (RSV) vaccine for the prevention of lower respiratory tract disease in adults aged 18 to 59 at higher risk. Global Abrysvo revenue jumped 136%, driven by strong uptake in selected international markets and favorable pricing. Pfizer noted, however, that updated guidance from U.S. health authorities led to lower vaccination rates among older adults in the U.S.
Sales of oncology biosimilars also provided support, rising 76% from a year earlier.
For the quarter ended December 31, operational revenue declined 3% to $17.6 billion, still comfortably above Bloomberg consensus estimates of $16.94 billion. On an adjusted basis, earnings came in at $0.66 per share, exceeding analyst forecasts of $0.57.
Looking ahead, Pfizer reiterated its full-year guidance, projecting revenue of $59.5 billion to $62.5 billion and adjusted diluted earnings per share in the range of $2.80 to $3.00. Management said the outlook reflects continued focus on “prioritization in key therapeutic areas” and plans to initiate around 20 pivotal clinical trials during the year.
Separately on Tuesday, Pfizer highlighted progress in its obesity pipeline, announcing that its experimental weight-loss drug delivered up to 12.3% weight reduction in patients without diabetes in a mid-stage trial. The drug was acquired through Pfizer’s purchase of Metsera in November for up to $10 billion, strengthening its position in the highly competitive obesity treatment market.
Pfizer also cautioned about the “anticipated unfavorable impact” of Trump administration import tariffs and policies aimed at aligning U.S. prescription drug prices more closely with those in other developed countries. Last year, the company reached an agreement with President Donald Trump to lower Medicaid drug prices in exchange for tariff relief.
Pfizer shares were trading slightly below flat in U.S. premarket dealings.