Pfizer’s stock surged 4.9% on Tuesday, driven by better-than-expected earnings. However, the company’s long-term problems remain a concern for investors.
The US biopharmaceutical giant reported adjusted diluted earnings of 78 cents per share in the second quarter, beating analyst expectations. Revenue reached $14.7 billion, exceeding estimates.
Despite this positive news, Pfizer shares have declined by 58% since the start of 2022. The company’s struggles are multifaceted, including patent expirations and regulatory challenges.
Pfizer CEO Albert Bourla acknowledged that the pandemic disrupted some areas of the business, but claimed the company is now “firing on all cylinders.” CFO David Denton added that trial data from upcoming pipeline products will help reassure investors about Pfizer’s future growth prospects.
However, analysts remain cautious. The impending expiration of patents on key medicines, including Eliquis and Xtandi, poses significant challenges for the company. Regulatory pressures, such as President Trump’s demands for price cuts, also weigh on shares.
Pfizer has highlighted several promising pipeline products, including SSGJ-707 and Sigvotatug Vedotin. However, analysts question whether these assets will be enough to address the long-term growth challenges facing the company.
Source: https://www.barrons.com/articles/pfizer-earnings-stock-price-11aa2076