Pfizer (PFE) raised its full-year guidance by $1.5 billion and posted strong third quarter earnings Tuesday.
The company now expects between $61 billion and $64 billion in revenue for the year and raised its outlook for adjusted earnings to $2.75 to $2.95 per share.
The announcement comes after Pfizer has recently struggled with cooling investor interest in its near-term value as the company pivots away from its COVID portfolio.
The stock traded up about 1% premarket but has since flipped and is now nearly 2% down, trading at $28.38 per share.
The third quarter earnings reflect the change, with $17.7 billion in revenue, marking a 23% growth year over year.
Some of that strength comes from cancer drugs that were acquired through the $43 billion Seagen deal, as the company’s existing blockbusters — such as its vaccine Prevnar 13 in 2026 and cancer drug Ibrance in 2028 — are facing patent expiration by the end of the decade — creating anxiety among investors as they wait for new blockbusters to emerge.
CEO Albert Bourla said during the earnings call Tuesday that he is open to working with all shareholders, “including Starboard” to increase value for the company’s stock.
Bourla has repeatedly said the company is undervalued and believes the acquisitions, plus internal pipeline candidates, are enough to bolster the company’s future.
It’s why the recent pressure from activist investor Starboard Value created intense interest, with many speculating that there isn’t much Starboard can do to alter the outlook for the company. Others point to other Big Pharma companies in the past, such as Bristol Myers Squibb (BMY), which have gone through similar lows or lulls as they build up or reconfigure their pipelines — meaning patience is required with respect to Pfizer’s near-term value.
The company continues to gain drug approvals and advance products through its pipeline, but so far none have wowed investors. The company’s RSV vaccine is a seasonal product, though it recently received FDA approval to expand from older adults to all adults as potential customers.
Meanwhile, its weight-loss pill, danuglipron, stumbled in early trials — raising questions of whether Pfizer will get any piece of the weight-loss market pie before robust competition builds up.
Pfizer said that its oral drug is finally entering phase II trials on Tuesday.
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