The American multinational pharmaceutical company Pfizer presented its first-quarter revenue report on Tuesday and even though the numbers were able to beat the Wall Street prediction and forecast, there has been a steady decline by more than one-fourth of the revenue when compared to the same time back in 2022.
The major reason behind the decline in the revenue of the company is associated with the declining sales of the COVID-19 vaccine developed by the company, which had been their biggest source of revenue generation.
During the peak time of the pandemic, Pfizer was able to generate a considerable amount of revenue through the sales of their COVID-19 vaccine and the oral antiviral pill Paxlovid.
As the effects of the pandemic have started to subside, there has been a massive decrease in the demand for vaccines against COVID-19. The diminished demand meant that the products did not meet the sales to generate the profit that they once used to generate for the company.
The company also gathered a huge number of investors during the time of the pandemic. People who were focused on the work of the company during the pandemic are eager and waiting to see what the company has to offer in order to keep up the momentum that they had.
The company and the investors of the company are currently focussing on their new drugs that are to be released into the market this year.
The executives of the company stated on Tuesday that the new drugs from the company that is expected to hit the market soon will be playing a big role in the coming future of the pharmaceutical company.
According to the CEO of Pfizer Albert Bourla, the majority of the new drugs from the company are expected to be released in the second half of the year and they are just waiting for the needed security approval from the concerned organizations. Bourla also added that the company is expecting its non-COVID drugs to generate an income and grow faster in the second half of the year.
While the company is expected to take the market and keep up its momentum through the newly developed drugs. It should also be noted that the majority of the new drugs that are expected to reach the market from Pfizer will have to face a string of competition from other different drugs that are already in the market.
Among the new drugs that are to be released from the pharmaceutical company, the pneumococcal shot Prevnar is one of the major ones.
The company has launched a new 20-strain version of the shot and the company was also successful in getting the approval of the Food and Drug Administration approval in infants and children for the shot last week. The company is also expected to receive an all-clear certificate for its RSV vaccine which is mainly aimed at older adults and pregnant women.
Not only are they mentioned but there are a few more strong competitors that await the new drugs from Pfizer in the market. Among some of the most prominent competitors, the biological drug elranatamab is a drug that will face serious competition from its rival.
The drug is still waiting for its approval and if it is to win the approval, the drug is expected to treat multiple myeloma. While it is a breakthrough in the field of medicine, it should be noted that one of the major competitors of the company, Johnson & Johnson has also already launched a drug in the same class named Tecvayli. So, even if the drug from Pfizer gets approval, it sure is expected to face huge competition once it reaches the market.
Similarly, the company has also developed another drug named etrasimod for the treatment of ulcerative colitis, which is currently waiting for approval. But the drug will also have serious competition from another drug named Zeposia which is developed by the New York-based pharmaceutical company Bristol Myers Squibb.
Some of the major drugs that are marketed by Pfizer became a part of the company through different accusations and buyouts from the company. Among such drugs, estrasimod became a part of the company through the buyout of Arena Pharmaceutical by Pfizer in 2021 from a reported sum of $6.7 billion.
Similarly, the oral pill Nurtec, which is used to treat migraine in adults also came to the company as a result of a buyout of Biohaven for a reported sum of $11.6 billion.
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Oxbryt is a drug from Pfizer that is used in the treatment of sickle cell disease and the company gained its access to the drug through a $5.4 billion takeout of Global Blood Therapeutics.
Even though the company has a strong presence in the market in terms of its non-COVID drugs, the sale of Nurtec and Oxbryta was disappointing, says the analysis of the sales in the first quarter for the company. The Sales of Nurtec were marked at $167 million and the sales of nOxbryta were marked at $71 million.
While these numbers seem promising, it should be noted that they missed their expected target by a mark of 26% and 9% respectively. After presenting the report regarding the revenue of the company in the first quarter of the year, the shares of the pharmaceutical company fell by 1% by mid-day Tuesday.
It should be noted that Pfizer was one of the most successful pharmaceutical companies in the world during the time of the pandemic.
The company had a clear global dominance in the pharmaceutical market but it is ironic to note that Pfizer is the only vaccine company that was not able to get a boost in their stock just like their balance sheet from the pandemic.
The CEO of the company even stated that he was not happy with the current stock price of the company and is hoping that there will be a boost in the revenue generated by the company in the second half of the year as different drugs from the company are awaiting their approval in order to be made available in the market.
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