Pfizer recently reported strong earnings for the third quarter, surpassing Wall Street expectations. As a result, the company has increased its revenue forecast for 2024, predicting it will earn between $61 and $64 billion, which is $1.5 billion more than previous estimates. Sales from July to September reached $17.7 billion, a 32% increase compared to last year, largely due to high demand for its COVID-19 treatment, Paxlovid. Even without COVID-related products, sales grew by 14%, thanks to other drugs like Vyndaqel for rare diseases, Xtandi for prostate cancer, and Nurtec ODT for migraines.
Despite the positive financial performance, Pfizer is under pressure from activist investor Starboard Value, which has criticized the company for losing market value through poor acquisitions and unmet research goals. Starboard has urged Pfizer’s board to hold its management accountable, although it hasn’t suggested specific actions.
In response, Pfizer CEO Albert Bourla highlighted the company’s efforts to cut costs and improve its operations. He also expressed a willingness to engage with shareholders, including Starboard, to consider ideas that could increase long-term shareholder value. Bourla dismissed Starboard’s general call for change as impractical, noting Pfizer has already made significant improvements.
While some of Pfizer’s new drugs are performing well, others have struggled. For instance, Pfizer recently decided to discontinue Oxbryta, a treatment for sickle cell disease, which it acquired for $5.4 billion two years ago. Despite these challenges, Pfizer remains optimistic about its future financial performance.