Pfizer Inc. (NYSE:PFE) today provided its full-year 2024 guidance(1)(6), which includes the expected financial impact from the Seagen transaction.
Accompanying presentation can be found at www.pfizer.com/investors.
Full-Year 2024 Revenue, Adjusted(5) SI&A, Adjusted(5) R&D and Adjusted(5) Diluted EPS Guidance Ranges(1)(6)
Pfizer expects full-year 2024 revenues to be in the range of $58.5 to $61.5 billion, which includes approximately $8 billion in anticipated revenues for Comirnaty(2) and Paxlovid, approximately $3.1 billion in anticipated revenues from Seagen and approximately $1 billion related to the reclassification of Pfizer's royalty income from Other (Income)/Deductions into the Revenue line. Including the contribution from Seagen and excluding revenues from Comirnaty(2) and Paxlovid, Pfizer expects to achieve full-year 2024 operational(3) revenue growth of 8% to 10%. Excluding revenues from Comirnaty(2) and Paxlovid and the expected contribution from Seagen, Pfizer expects to achieve full-year 2024 operational(3) revenue growth of 3% to 5%. Both expected operational(3) growth rate ranges are compared with the mid-point of Pfizer's full-year 2023 revenue guidance range provided on October 31, 2023, and account for the reclassification of royalty income. While the company will begin reporting royalty income in the revenue line in 2024, for growth rate purposes, the company has included royalty income in both 2023 and 2024. Consequently, there is no operational revenue growth As put by the reclassification of royalty income.
Including the impact of Seagen, Pfizer anticipates full-year 2024 Adjusted(5) SI&A expenses to be in the range of $13.8 billion to $14.8 billion and full-year 2024 Adjusted(5) R&D expenses to be in the range of $11.0 to $12.0 billion. Consequently, total 2024 Adjusted(5) SI&A and R&D expenses are expected to be in the range of $24.8 to $26.8 billion. This range reflects an anticipated decline of approximately $4 billion by the end of 2024 and represents an incremental $500 million expense reduction versus the midpoint of Pfizer's SI&A and R&D expense guidance provided on August 1, 2023, solely driven by Pfizer's cost realignment program. 2024 Adjusted(5) diluted EPS is anticipated to be in a range of $2.05 to $2.25, which primarily reflects expected operational(3) growth of 8%-10% in revenues, excluding Comirnaty(2) and Paxlovid, and including the impact of Seagen, as well as anticipated operating margin improvement from the company's cost realignment activities, partially offset by an expected $0.40 dilutive impact related to the Seagen acquisition, which is predominantly driven by costs to finance the transaction.
A reconciliation of Pfizer's 2023 Financial Guidance to its 2024 Financial Guidance(1)(6), including certain significant factors impacting 2024 Financial Guidance, is presented below.
2023 Pfizer Guidance (as of October 31, 2023) |
2024 Legacy Pfizer Guidance |
Anticipated Impact of Royalty Reclass included in 2024 Guidance |
Anticipated 2024 Seagen Impact included in 2024 Guidance |
2024 Financial Guidance |
|
Revenues ($ in billions) |
$58.0 - $61.0 |
$54.5 - $57.5 |
$1.0 |
$3.1 |
$58.5 - $61.5 |
Adjusted(5) SI&AExpenses($ in billions) |
$13.3 - $14.3 |
$13.8 - $14.8 |
|||
Adjusted(5) R&D Expenses($ in billions) |
$11.9 - $12.9 |
$11.0 - $12.0 |
|||
Effective Tax Rate on Adjusted(5) Income |
~12% |
~15% |
|||
Adjusted(5) Diluted EPS |
$1.45 - $1.65 |
$2.45 - $2.65 |
- |
($0.40) |
$2.05 - $2.25 |
Financial guidance for Adjusted(5) diluted EPS is calculated using approximately 5.75 billion weighted average shares outstanding, and assumes no share repurchases in 2023 or 2024.
Seagen Acquisition
As announced on December 12, 2023,Pfizer and Seagen have received all required regulatory approvals for the closing of the acquisition. Pfizer expects to complete the acquisition of Seagen on December 14, 2023, subject to the satisfaction of other customary closing conditions.
Executive Commentary
Dr. Albert Bourla, Pfizer Chairman and Chief Executive Officer, stated: "Pfizer's product portfolio remains strong. In 2024, Comirnaty and Paxlovid are expected to deliver combined revenues of approximately $8 billion and our remaining portfolio of combined Pfizer and Seagen products is expected to achieve year-over-year operational revenue growth in the range of 8% to 10%.
"In addition, we expect our cost realignment program to deliver savings of at least $4.0 billion by the end of 2024, which puts us on a path to potentially regain our pre-pandemic operating margins.
"We look forward to joining forces with Seagen and using our combined strengths to bring us ever closer to delivering long promised cures for certain cancers."
Pfizer intends to provide additional commentary in an analyst webcast scheduled for 8:30 a.m. EST, Wednesday, December 13, 2023, details can be found at www.pfizer.com/investors.
