By Steve Gelsi
Pfizer’s stock rallies after drug giant cites strength in its COVID-19 drugs and Vyndaqel heart medication
Pfizer Inc.’s stock was rallying Tuesday after the drug giant lifted its 2025 adjusted profit estimate on the heels of a 10% jump in second-quarter revenue on strength in its Vyndaqel heart medication and its COVID-19 drugs.
Pfizer (PFE) increased its 2025 profit outlook by 10 cents a share to a range of $2.90 to $3.10 a share, citing continued cost cuts, a lower tax rate and “confidence” that strength seen in the first half of the year will continue.
The $3-a-share midpoint of its new estimated earnings range would put it just below the FactSet consensus estimate of $3.02 a share for adjusted 2025 earnings.
The company said the outlook “absorbs the impact of the current imposed tariffs [on products] from China, Canada and Mexico,” along with potential price changes based on President Donald Trump’s July 31 letter regarding cuts in drug prices.
The company declined to provide any details on “active discussions” it’s having with the Trump administration regarding a move by the Centers for Disease Control and Prevention to pull back recommendations for adult COVID-19 vaccination, but said the talks have been productive thus far.
The stock rose 5.3% to $24.36 on Tuesday afternoon.
Turning to some of the bright spots in the quarter, Pfizer said its Elrexfio myeloma medicine delivered rapid growth in Spain, the U.K. and Japan.
Its drug pipeline includes sigvotatug vedotin for treatment of non-small-cell lung cancer as well as the Hympavzi hemophilia drug and a Lyme disease vaccine.
Edward Jones analyst John Boylan reiterated a buy rating on Pfizer and said the company’s results were driven by “effective cost control” as well as stronger-than-expected sales of its COVID-19 medicines.
“Our outlook is that over the next year or two Pfizer’s significant cost-reducing measures along with new products in the next several years should help Pfizer return to predictable growth,” he said. “We do not believe this positive outlook is reflected in the price of the shares.”
Pfizer maintained its expectation for 2025 sales of $61 billion to $64 billion, despite uncertainty around the severity of the coming winter and its potential impact on demand for COVID-19 medicines, Boylan said.
Among the other achievements in the quarter, Pfizer delivered better-than-expected sales of its Padcev cancer medicine, “as it appears the drug is gaining traction with doctors,” he said.
On the downside, the company’s migraine medicine, Nurtec, missed sales projections, he said.
Pfizer lowered its estimate for 2025 selling, information and administrative expenses by $200 million to a range of $13.1 billion to $14.1 billion and cut its expected 2025 costs for research and development by $300 million to a range of $10.4 billion to $11.4 billion.
For the second quarter, Pfizer said profit rose to $2.9 billion, or 51 cents a share, from $41 million, or a penny a share, in the year-ago quarter.
Adjusted second-quarter profit rose to 78 cents a share from 60 cents a share in the year-ago quarter, handily beating the analyst estimate of 58 cents a share.
Revenue rose 10% to $14.65 billion, well ahead of the analyst estimate of $13.56 billion.
Pfizer cited strength in sales of its Vyndaqel heart-drug family, Comirnaty COVID-19 vaccine, Paxlovid antiviral medicine, Padcev urothelial-cancer drug and Eliquis blood thinner.
Pfizer said it’s on track to hit its $7.2 billion cost-savings goal by the end of 2027 as it focuses on growing margins and boosting productivity.
Through Monday, Pfizer’s stock has fallen 11.3% in 2025, while the S&P 500 SPX has gained 7.6%.
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
08-05-25 1444ET
Copyright (c) 2025 Dow Jones & Company, Inc.