By Bhanvi Satija and Michael Erman
(Reuters) -Pfizer raised its full-year profit forecast on Tuesday while reporting second-quarter results that topped Wall Street estimates, and said it expects to benefit from cost-cutting and a weaker dollar.
The New York-based drugmaker said the new forecast absorbs a one-time charge of 20 cents per share related to its licensing deal with China’s 3SBio for an experimental cancer treatment. Pfizer shares rose about 2% to $24 in premarket trading.
Pfizer shares have lost more than half their value from their pandemic-era highs as it deals with waning revenue from COVID products and looming patent expirations for key drugs. In response, the company launched cost-saving measures last year across its manufacturing and research operations.
Pfizer said it was on track to deliver $7.2 billion in net savings from the programs by the end of 2027, about $4.5 billion coming by the end of 2025.
J.P. Morgan analyst Chris Schott said that the quarterly beat and the forecast raise did not come as a surprise given the company’s better-than-expected cost management.
“We would not be surprised with additional upside to EPS as the year progresses,” Schott said.
The company now expects adjusted earnings of $2.90 to $3.10 per share, up from its prior view of $2.80 to $3.00.
The pharmaceutical industry is facing intense pressure from U.S. President Donald Trump to lower prices Americans pay for prescription medicines, while preparing for 15% tariffs on imports from the European Union.
Pfizer shares have fallen over 11% this year, compared to a 1.7% decline for the broader NYSE Arca Pharmaceutical Index.
The company said its forecast also absorbs the impact of the currently imposed tariffs on goods imported from China, Canada and Mexico, as well as potential price changes this year based on the letter it received from Trump on July 31.
“We continue to be actively engaged with policymakers as we navigate a complicated and rapidly evolving geopolitical environment,” said CEO Albert Bourla in prepared remarks.
Pfizer has said it has enough manufacturing capacity across its 10 U.S. sites to mitigate any tariff impact and is open to shifting some production to those facilities.
Total quarterly sales of $14.65 billion topped analysts’ estimates by over $1 billion, according to LSEG data, and included a $22 million favorable impact from foreign exchange.
Sales of antiviral COVID-19 treatment Paxlovid of $427 million for the quarter far exceeded analysts’ expectations of $244.4 million.
COVID vaccine Comirnaty, which Pfizer makes with German partner BioNTech, brought in sales of $381 million. Analysts were expecting $188 million.
Quarterly sales of the heart disease treatment sold under brand names Vyndaqel and Vyndamax were $1.62 billion, slightly above estimates of $1.59 billion.
Revenue from blood thinner Eliquis, which Pfizer shares with Bristol Myers Squibb, was $2 billion, while analysts were expecting $1.94 billion.
On an adjusted basis, Pfizer earned 78 cents per share for the second quarter, topping analysts’ expectations by 20 cents.
(Reporting by Bhanvi Satija and Mrinalika Roy in Bengaluru and Michael Erman in New York; Editing by Anil D’Silva and Bill Berkrot)
