Pfizer beats profit estimates as new drugs offset Covid products slump

Pfizer Inc on Tuesday beat analysts' estimates for first-quarter profit as strong demand for its recently acquired products and pneumococcal vaccines helped offset the impact from declining sales of its Covid-19 products.

The drugmaker is under pressure to spend the windfall gains from strong demand for its Covid products during the pandemic to mitigate a looming patent cliff for some of its top drugs, as well as a steep decline in Covid-related sales.

Pfizer expects 2023 to be a "transition year" for its Covid products, before potential returning to growth in 2024.

Sales of its Covid-19 vaccine Comirnaty and antiviral treatment, Paxlovid, came in at $7.1 billion for the quarter.

Sales from its family of pneumococcal vaccines were $1.59 billion for the quarter, slightly above estimates of $1.58 billion, according to Refinitiv estimates.

Shares of the company rose nearly 2% before the bell.

Excluding items, the US drugmaker earned $1.23 per share for the quarter ended March 31, compared with estimates of 98 cents, according to Refinitiv estimates.

The drugmaker reaffirmed its annual profit forecast of $3.25 to $3.45 per share.