Leading pharmaceutical research development company Pfizer Inc. (PFE, Financial) has released solid revenue for the fourth quarter alongside some lofty expectations for 2021.
On Tuesday, the company reported fourth-quarter revenue of $11.68 billion, a 12% year-over-year increase, that beat Refinitiv estimates of $11.43 billion. Adjusted earnings per share failed to beat estimates despite a 14% year-over-year increase to 42 cents.
"2020 has been a transformational year, not only for Pfizer, but also in the life of every patient in every community that we serve," Dr. Albert Bourla, chairman and CEO, said. "As a company, we saw the culmination of Pfizer's decade-long conversion into a pure-play, science and innovation-focused company. Right away, our ability to move quickly and utilize cutting-edge science to help address the world's most important medical challenges was put to the test by the Covid-19 pandemic. Our record-breaking success at developing a vaccine against Covid-19, along with our partner BioNTech (BNTX), is just one example of what we believe this new Pfizer is capable of achieving. As the world looks forward to 2021 with renewed hope for better days ahead, we also look forward with renewed confidence and resolve in our ability to fulfill our purpose, to deliver breakthroughs that change patients' lives."
Fourth-quarter revenue saw benefits from the operational growth of many of the drugs and treatments under Pfizer's banner. One of the biggest jumps came from the company's Vyndaqel/Vyndamax drug that was up 96% operationally. Drugs that target illness and diseases affected by the ongoing pandemic also saw significant operational growth, which was partially offset by lower sales from the company's Chantix and Enbrel drugs.
Alongside their partner BioNTech, Pfizer worked to create a treatment for Covid-19 that was granted emergency use authorization in the U.S. in December. The new treatment contributed $154 million in sales during the fourth quarter.
The new Covid-19 treatment is also set to make waves for the company moving into 2021. Pfizer announced assumptions that the treatment would bring in approximately $15 billion in revenue throughout the year. However, the company has struggled to meet demands for the treatment. According to CNBC, Pfizer expects to deliver 200 million doses of the vaccine by the end of July to the U.S.
On Feb. 2, Pfizer shares were trading at $35.80 with a market cap of $198.99 billion. According to the GF Value Line, the stock is trading at fair value.
Top invested gurus include the T Rowe Price Equity Income Fund (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Richard Pzena (Trades, Portfolio), the Vanguard Health Care Fund (Trades, Portfolio) and Kahn Brothers (Trades, Portfolio).
Disclosure: Author owns no stocks mentioned.
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