Pfizer's Eliquis Price Gains Cover COVID Drop: Rapid Earnings Reaction

Pfizer (NYSE: PFE) reported flat third-quarter revenue of $16.6 billion and raised its full-year outlook. Shares slipped about 0.2% in premarket trading. Eliquis and other newer drugs offset the drop in COVID and Prevnar sales, but the growth leaned on price, and adjusted earnings held only because offsetting items balanced out.

Key numbers

• Revenue: $16.6 billion, relatively flat versus a year ago.

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• Revenue excluding Comirnaty and Paxlovid: up 7% operationally.

• Reported diluted EPS: $0.56, versus $0.62.

• Adjusted diluted EPS: $0.87, versus $0.87.

• Full-year revenue guidance: raised to $62.0 billion to $64.0 billion, from $60.5 billion to $62.5 billion.

• Full-year adjusted diluted EPS guidance: raised to $2.95 to $3.05, from $2.80 to $3.00.

What it means

Paxlovid and Comirnaty sales fell on fewer infections and narrower vaccine recommendations, and the Prevnar family also declined. Eliquis, Padcev, Vyndaqel, Nurtec, and Lorbrena grew enough to offset that drop, according to the release. Excluding Comirnaty and Paxlovid, revenue grew 7% operationally.

Image source: Getty Images.

Eliquis deserves a closer look. It brought in $2.52 billion, up 25% year over year, beating the roughly $2.40 billion analysts expected. The release credits higher U.S. net price, driven by lower rebates and better channel mix, as a key driver. A price gain can be harder to repeat than a demand gain, especially with the Medicare negotiated price now in effect for 2026.

Adjusted earnings held because offsetting items balanced out. Reported diluted EPS fell to $0.56 from $0.62, while adjusted diluted EPS stayed at $0.87. The company's guidance raise reflects both the quarter and the higher cost-cutting target, roughly $9.7 billion in net savings through 2029.

What to watch next

Watch whether Eliquis's U.S. growth holds, since the Medicare negotiated price is in effect this year and the release says Pfizer expects no material incremental impact from the Part D redesign. Also track research spending and the progress on the late-stage pipeline, which Pfizer says includes eight key pivotal study starts, one pivotal readout, and two regulatory decisions this quarter.

Savannah Maxwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.