Pfizer Inc. has provided its financial forecast guidance for the full year of 2024, accounting for the anticipated impact of the Seagen acquisition. The company expects full-year 2024 revenues to range between $58.5 and $61.5 billion, including an estimated $8 billion from Comirnaty and Paxlovid revenues, approximately $3.1 billion from Seagen, and an additional $1 billion from the reclassification of Pfizer’s royalty income.
The guidance projects operational revenue growth of 8% to 10%, excluding the revenues from Comirnaty and Paxlovid but including Seagen’s expected contribution. Without including revenues from Comirnaty, Paxlovid, and Seagen, Pfizer forecasts operational revenue growth of 3% to 5% for 2024. These growth rates are calculated relative to the midpoint of Pfizer’s 2023 revenue guidance and consider the reclassification of royalty income.
Pfizer plans to report royalty income in the revenue line starting in 2024, but for growth rate calculations, it is included in both 2023 and 2024 to avoid attributing operational revenue growth to the reclassification.
Added expenses resulting from Seagen are factored into Pfizer’s anticipated full-year 2024 Adjusted SI&A expenses, which are expected to be between $13.8 billion and $14.8 billion, and full-year 2024 Adjusted R&D expenses, predicted to be between $11.0 and $12.0 billion. Consequently, total adjusted SI&A and R&D expenses for 2024 are projected to land between $24.8 and $26.8 billion, reflecting an approximate $4 billion reduction by year-end, driven primarily by Pfizer’s cost realignment program.
Pfizer’s adjusted diluted EPS for 2024 is forecasted to be $2.05 to $2.25. This projection incorporates operational growth and improved operating margins through cost alignment, slightly offset by the $0.40 diluted impact expected from the Seagen acquisition, mainly attributable to the transaction’s financing costs.
A detailed reconciliation compares Pfizer’s 2023 financial guidance to its projections for 2024, reflecting various influential factors, including the impacts of the Seagen acquisition and the change in royalty reporting:
– 2023 Guidance Range: $58.0 – $61.0 billion in revenues, Adjusted SI&A Expenses of $13.3 – $14.3 billion, Adjusted R&D Expenses of $11.9 – $12.9 billion, an effective tax rate on Adjusted Income of approximately 12%, and Adjusted Diluted EPS of $1.45 – $1.65.
– 2024 Guidance Range: $58.5 – $61.5 billion in revenues (inclusive of Seagen impact and royalty reclass), Adjusted SI&A Expenses of $13.8 – $14.8 billion, Adjusted R&D Expenses of $11.0 – $12.0 billion, an effective tax rate on Adjusted Income of approximately 15%, and Adjusted Diluted EPS of $2.05 – $2.25 (reflecting Seagen acquisition impacts).
This guidance aims to inform investors about Pfizer’s financial trajectory in light of its growth strategy and recent business developments. The accompanying presentation is available on Pfizer’s website for more comprehensive information.
Jon Napitupulu is Director of Media Relations at The Clinical Trial Vanguard. Jon, a computer data scientist, focuses on the latest clinical trial industry news and trends.
