Total Company Revenues: $14.9 billion, showing an operational decline of $3.5 billion or 19% versus the previous year.
Adjusted Gross Margin: Improved by 530 basis points to 79.6% versus Q1 of last year.
Operational Revenue Growth (excluding COVID products): 11% growth, driven by renewed focus on key products and markets.
Adjusted Operating Expenses: Increased modestly by 1% to $5.9 billion compared to Q1 of last year.
Adjusted R&D Expenses: $2.5 billion, a decrease of 1% operationally versus the previous year.
Reported Diluted Earnings Per Share: $0.55.
Adjusted Diluted Earnings Per Share: $0.82, exceeding expectations due to favorable gross margin performance and strong cost management.
Future Guidance
Full Year Adjusted Diluted Earnings Per Share Guidance Range: Raised by $0.10 to a new range of $2.15 to $2.35.
Revenues Forecast: Expected to range between $58.5 billion to $61.5 billion for the year.
COVID Products Revenue Contribution: Expected to contribute to revenue and cash flows for the foreseeable future, with approx. 90% of COMIRNATY sales anticipated in the second half of the year, mostly in Q4.
Cost Realignment Program: On track to deliver at least $4 billion of net savings by the end of the year.
Trends, Market Conditions, Sentiment
Seasonal Trends in Vaccine Sales: RSV vaccine market appears to follow a seasonal trend, with Abrysvo performance in line with expectations.
Market Dynamics for RSV Vaccines: Strong position indicated for the fall season, with Abrysvo expected to continue increasing both market growth and market share.
Global Expansion: Progress in regulatory approvals and recommendations for Abrysvo in multiple international markets, indicating a potential for wider market reach and impact.
Cost Management: Continuous focus on improving gross margin rates and disciplined cost control despite integrating expenses associated with the acquired Seagen business.
Shift in COVID Product Demand: Decline in demand for COVID-related products, with emphasis on the expectation of continued revenue contribution from these products.
Investment in R&D: Prioritization of R&D spending to enhance returns while supporting pipeline growth, despite overall decrease in spending.
Notable Quotes
”In the first quarter, we had a solid start to the year, and we are cautiously optimistic about what we will achieve in 2024.” - Albert Bourla, Chairman and CEO.
”Our relentless focus on execution is positioning Pfizer to improve shareholder returns.” - David Denton, CFO.
”As we entered 2024, the company was highly focused on delivering on its financial commitments, and our performance in Q1 demonstrates that we are off to a solid start.” - David Denton, CFO.
”Given the facts, we can now finalize the total value of the U.S. government credit. This resulted in a favorable adjustment to revenues of $771 million for PAXLOVID and contributed $0.11 to the company’s earnings per share.” - David Denton, CFO.
”We are making good progress. And actually, we have already received the recommendation in the U.K., in Australia, in Norway, and we are progressing and waiting some recommendations from the vaccine technical committee in many other European markets.” - Alexandre de Germay, EVP and Chief International Commercial Officer.
