New York-based drugmaker Pfizer has reported its first quarterly loss since 2019, while revenue also missed estimates, as the company was hit by charges linked to its COVID-19 treatments.

Pfizer reported financial results for the third quarter of 2023. The company reaffirms its 2023 revenue guidance range of US$ 58 billion to US$ 61billion and its outlook for adjusted diluted EPS of $1.45 to $1.65 provided on October 13, 2023.

In a statement, Pfizer flagged that it was ‘significantly impacted’ by US$ 5.6 billion in non-cash inventory write-offs and other charges related to its COVID products, including US$ 4.7 billion for its Paxlovid antiviral treatment and US$ 900 million for Comirnaty, a vaccine co-developed with Germany's BioNTech.

Revenue in the three months ended on Oct. 1 also slipped by 42% to US$ 13.23 billion.

Meanwhile, Pfizer reaffirmed its annual revenue forecast, which it had reduced by 13% earlier this month due to lower-than-projected sales of its COVID vaccines and treatments. A post-pandemic drop in vaccination rates and an uptick in population-wide immunity have cooled the once red-hot clamor for the company's COVID offerings. The drugs previously fueled a spike in revenue to record levels in 2021 and 2022.

Dr. Albert Bourla, Chairman and Chief Executive Officer, stated: “We are encouraged by the strong performance of Pfizer’s non-COVID products in the third quarter of 2023, including significant contributions from new launches and robust year-over-year growth for several key in-line brands. We also have achieved several recent milestones that speak to the underlying strength and breadth of our scientific pipeline, including the U.S. and European Commission (EC) approval and launch of Abrysvo in pregnant individuals, and EC approval and launch of Abrysvo in older adults; the U.S. approval and launch of Elrexfio; U.S. approvals of Penbraya, Velsipity and of the Braftovi+Mektovi combination in BRAF-mutated metastatic non-small cell lung cancer; and EC approval of Litfulo.

“In addition, we continue to make progress toward our proposed acquisition of Seagen, a global leader in discovering, developing and commercializing transformative oncology medicines that we believe can help us conquer cancer in the coming years—and earlier this month, we received unconditional antitrust clearance from the EC on the proposed acquisition, a decision we believe confirms our view that the transaction is procompetitive, reflective of our complementary portfolios and good for patients.

“With a significant uncertainty removed by our recently announced amended Paxlovid supply agreement with the U.S. government, our expectation of additional clarification on global vaccination and treatment rates by the end of the year, and the breakthroughs continuing to emerge from our pipeline, we look forward to concluding 2023 with positive momentum that showcases Pfizer’s long-term growth potential.”

David Denton, Chief Financial Officer and Executive Vice President, stated: “We are extremely pleased by the strong 10% operational revenue growth of Pfizer’s non-COVID products in the third quarter of 2023. With expected contributions from our new product launches, this puts us squarely on track to meet our full-year nonCOVID operational revenue growth target of 6% to 8%. In addition, we launched our cost realignment program, from which we expect to achieve at least $3.5 billion of net cost savings by the end of 2024. Combined with the momentum of our non-COVID product portfolio and U.S. commercialization of Paxlovid, we expect the program to yield improved operating margins this year and help drive Pfizer’s growth through the end of the decade and beyond.”