San Francisco Frontiers - Pfizer shares drop on quarterly loss

The big US drugmaker pointed to another drop in quarterly revenues tied to Covid-19 products, as well as $4.4 billion in asset impairments that were needed "due to changes in development plans and updated long-range commercial forecasts," Pfizer said in its press release.

Pfizer pointed to 20 planned trials in 2026 for pharmaceuticals under development and said it achieved sales growth in several leading products, including blood-thinner Eliquis in spite of competition from generics in some markets.

But investors punished the stock following the earnings announcement, which signaled that the company again plans no share repurchases in 2026 as it works to limit its debt while funding a research and development plan intended to offset the hit from lost patent advantages.

The negative market reaction also suggested investors may have been hoping for a quicker return on Pfizer's R&D program than the one implied by the results.

Pfizer reported a loss of $1.6 billion compared with profits of $410 million in the fourth quarter of 2024. Revenues fell two percent to $62.6 billion.

Chief Executive Albert Bourla said Pfizer's 2025 "solid" performance provides a "foundation for future growth."

Bourla said 2026 "will be an important year rich in key catalysts, including our expectation for approximately 20 key pivotal study starts, and continued strategic investment to maximize our opportunities for industry-leading growth at the end of the decade."

In the fourth quarter, the drugmaker experienced a 35 percent drop in revenues from Covid-19 vaccine Comirnaty and a 75 percent decline in sales tied to therapeutic Paxlovid.

Since the pandemic, Pfizer has completed acquisitions of oncology drug specialist Seagen and Metsera, which is known for weight loss products.

Pfizer said half of the 20 trials in 2026 are for "ultra-long-acting obesity assets" acquired from Metsera.

In prepared remarks released with the results, Pfizer Chief Scientific Officer Chris Boshoff called a range of clinical results to date on anti-obesity products "encouraging," but said the company was targeting the first of government approvals only in 2028.

While Pfizer continued to pay a dividend in 2025, it did not undertake any share repurchases, in line with its plan to pay off debt "in a prudent manner," the company said.

"Current financial guidance does not anticipate any share repurchases in 2026," said Pfizer, which anticipates research and development expenses of between $10.5 and $11.5 billion in 2026.

Pfizer spent $10.4 billion on R&D in 2025.

Pfizer projected 2026 revenues of $59.5 to $62.5 billion, a bit below the $62.6 billion last year. The company's overall outlook for 2026 was in line with Pfizer's December projections.

This outlook includes around a $1.5 billion revenue hit from anticipated generic products coming on line in 2026.

Shares dropped 3.2 percent in morning trading.

M.Gonzalez--SFF