Pfizer reported an adjusted profit of 77 cents a share, nine cents above estimates, while raising its cumulative cost-savings target to $9.7 billion through 2029 as it works to offset the COVID revenue cliff. The GAAP result was a loss of four cents a share, dragged down by a $3.8 billion impairment on the experimental lung cancer therapy sigvotatug vedotin and acquisition-related charges. Shares slipped about half a percent in early trading.
The GAAP loss and the Seagen writedown
The impairment stems from the $43 billion Seagen acquisition. In June, sigvotatug vedotin failed to improve overall survival in a late-stage trial of previously treated lung cancer patients. Pfizer says it remains confident in the drug for patients with only one prior line of therapy and is testing it with Keytruda as a first-line treatment. The writedown makes the GAAP number noisy; the adjusted figure is what the Street traded.
Eliquis and Padcev carry the quarter
Sales of Eliquis, shared with Bristol Myers Squibb, rose about 21 percent to $2.43 billion, well above the $1.93 billion consensus. Padcev sales climbed 23 percent to $667 million, beating the $634 million estimate. The two drugs together absorbed the hit from declining COVID product demand. CEO Albert Bourla said launched and acquired products performed well, a phrasing that conveniently sidesteps the Seagen asset that just generated a multibillion-dollar charge.
Obesity pipeline and the Metsera bet
The $10 billion Metsera acquisition is meant to plant a flag in an obesity market analysts see reaching $150 billion annually. Berobenatide, the once-monthly injection, delivered up to 12.3 percent weight loss in non-diabetic patients but raised tolerability questions. In June its side-effect profile looked similar to Wegovy in a mid-stage trial. Bourla described the program as advancing with meaningful momentum, which is the standard script when the data are mixed and the competition is entrenched.
Guidance tweaks and the CFO search
Full-year sales guidance moved to $60.5 billion to $62.5 billion from $59.5 billion to $62.5 billion previously. The 2026 profit forecast of $2.80 to $3.00 a share was reaffirmed despite a $650 million upfront payment for the Innovent Biologics licensing deal in May. Pfizer expects a return to stronger growth after 2028, a timeline that coincides with a wave of patent expirations. Guggenheim called the near-term story challenging. Meanwhile, the company is hunting for a new CFO before Dave Denton departs later this month.