Missed Targets, New Hopes: Pfizer’s COVID Slide Sets Stage for a Pharma Plot Twist

Pfizer posted softer-than-anticipated quarterly sales as revenue from its COVID-19 products, specifically the antiviral pill Paxlovid and the vaccine Comirnaty, continued to plummet sharply. The drug giant reported total revenue of $13.7 billion in the first quarter of 2025, falling short of analyst estimates of $13.91 billion. This shortfall highlights the continued challenge Pfizer is facing in weaning itself off its pandemic-era bonanza.

 

Key Highlights:

 

COVID Revenue Collapse: Sales of COVID-19 therapies plummeted, and revenue from Paxlovid decreased 50% year-over-year to $2.04 billion, while Comirnaty vaccine sales plunged 88% to a mere $354 million. The decline in demand for these products was the biggest reason behind Pfizer's revenue miss.

 

Profit Impact: The net income for Pfizer in the quarter came in at $3.12 billion, a sharp 44% drop from the previous year's corresponding period, driven by the effect of reduced COVID-related sales.

 

Core Business Resilience: If COVID products are excluded, Pfizer's revenues would have increased by 11%, led by solid performances by major medicines such as Eliquis (up 10% to $2.04 billion), the Vyndaqel group for cardiomyopathy (up 66% to $1.14 billion), and additions from newly acquired Seagen's oncology business.

 

Pipeline Pruning: In a move to trim the fat and position itself for future growth, Pfizer cut four pipeline programs, such as gene therapy for Wilson disease and for migraine treatments, marking a strategic reset.

 

Guidance Raised: While missing its sales forecast, Pfizer lifted full-year profit expectations, now expecting adjusted earnings per share of between $2.15 and $2.35 and full-year revenue of $58.5 billion to $61.5 billion, anchored by the robustness of its non-COVID portfolio.

 

CEO's Take: CEO Albert Bourla was upbeat, pointing to a "well-executed quarter" and core business momentum, while recognizing the continued COVID-19 headwinds.

 

Sources: Reuters, BioSpace, Nasdaq