Pfizer Inc. (PFE) is a research-based, global biopharmaceutical company that applies science and its global resources to bring therapies to people that extend and significantly improve their lives. The company manages its commercial operations through two operating segments: Biopharma and Business Innovation, with Biopharma being the only reportable segment.
In the fiscal year 2023, Pfizer reported annual revenues of $58,496 million and net income of $11,119 million. The company's annual operating cash flow was $8,700 million, while its annual free cash flow stood at $4,793 million. These financial metrics demonstrate Pfizer's scale, profitability, and strong cash generation capabilities, which are critical in supporting its strategic priorities and investments.
During the first quarter of 2024, Pfizer reported total revenues of $14,879 million, a decrease of 20% compared to the same period in the prior year. This decline was primarily driven by lower sales of Comirnaty and Paxlovid, the company's COVID-19 vaccine and treatment, respectively. Excluding the contributions from these COVID-19 products, Pfizer's total revenues increased by 11% operationally, reflecting strong performance from its legacy products and the addition of Seagen's portfolio following the company's acquisition in December 2023.
Pfizer's Biopharma segment, which includes its core biopharmaceutical business, generated revenues of $14,604 million in the first quarter of 2024, down 20% year-over-year. This decline was largely attributable to the reduced demand for Comirnaty and Paxlovid, which was partially offset by growth in products such as Eliquis, the Vyndaqel family, and Abrysvo. The company's Business Innovation segment, which includes its contract manufacturing and R&D services operations, reported revenues of $275 million, a 12% decrease compared to the same period in the prior year.
Geographically, Pfizer's revenues from the United States increased by 9% to $9,514 million in the first quarter of 2024, while its international revenues declined by 45% to $5,365 million, primarily due to the reduced demand for its COVID-19 products in international markets.
Pfizer's adjusted diluted earnings per share (EPS) for the first quarter of 2024 was $0.82, exceeding the company's expectations due to favorable gross margin performance and strong cost management across the enterprise. The company's reported diluted EPS for the quarter was $0.55.
Looking ahead, Pfizer has raised its full-year 2024 adjusted diluted EPS guidance range by $0.10 to $2.15 to $2.35, reflecting its improving line of sight to its cost savings targets and continued strength in its underlying business. The company's revenue guidance for 2024 remains unchanged, with an expected range of $58.5 billion to $61.5 billion.
Strategic Priorities
Pfizer's strategic priorities for 2024 include achieving world-class oncology leadership, delivering the next wave of pipeline innovation, maximizing the performance of its new products, expanding margins by realigning its cost base, and allocating capital to enhance shareholder value. The company has made notable progress in each of these areas during the first quarter of 2024.
In oncology, Pfizer's revenues grew 19% operationally in the first quarter, driven by the acquisition of Seagen's portfolio and the strong launch of Padcev in first-line locally advanced/metastatic urothelial cancer. The company also received full FDA approval for Tivdak to treat recurring or metastatic cervical cancer. Pfizer is confident in its ability to achieve its 2030 goals of doubling the number of patients treated with its innovative cancer medicines, increasing the number of blockbuster medicines in its portfolio from 5 to 8 or more, and driving a tenfold increase in the proportion of revenue from biologics.
Regarding pipeline innovation, Pfizer has made progress in its Respiratory and Hematology portfolios. In Respiratory, the company recently reported positive results from the Phase III MONeT trial, evaluating Abrysvo in adults aged 18 to 59 at increased risk for RSV disease. In Hematology, Pfizer received the first U.S. FDA gene therapy approval for Beqvez, a one-time gene therapy for adults with hemophilia B, and expects an FDA decision on marstacimab, a potential first-in-class treatment for hemophilia A and B, before the end of 2024.
Pfizer's efforts to maximize the performance of its new products have also yielded positive results. The company is seeing momentum in its Oncology portfolio, as well as in products like Abrysvo, Nurtec ODT/Vydura, Oxbryta, and Velsipity. Additionally, Pfizer continues to protect and grow its core brands and key blockbusters, including Prevnar, Vyndaqel, and Eliquis.
The company's progress in realigning its cost base through its multi-year, enterprise-wide Realigning our Cost Base program is also noteworthy. Pfizer expects to deliver at least $4 billion in net savings by the end of 2024, which will contribute to margin expansion and improved financial returns.
Pfizer's capital allocation framework is primarily focused on maintaining and growing its dividend over time, reinvesting in the business, and making value-enhancing share repurchases after deleveraging its balance sheet. During the first quarter of 2024, the company returned $2.4 billion to shareholders through its quarterly dividend and invested $2.5 billion in internal R&D.
Despite the challenges posed by the declining COVID-19 environment, Pfizer remains cautiously optimistic about its prospects for 2024 and beyond. The company's diversified portfolio, strong pipeline, and disciplined execution of its strategic priorities position it well to navigate the current landscape and deliver value for its shareholders.