Pfizer lifts profit view on cost cuts, smaller drop in Paxlovid demand

Pfizer has raised its annual profit forecast following better-than-expected first-quarter results, driven by effective cost reductions and robust sales of its pneumonia vaccine and cancer treatment Padcev. Despite a significant drop, Paxlovid sales still surpassed expectations, contributing to the optimistic outlook.

The pharmaceutical giant is focusing on post-COVID growth, highlighted by its acquisitions, such as the $43 billion deal for Seagen, and a comprehensive $4 billion cost-cutting plan. However, challenges remain, including lower-than-expected sales of its new RSV vaccine and some cancer therapies. Pfizer's shares saw a slight increase in premarket trading following the announcement.