The House That Paxlovid Built
My dears, Pfizer’s first quarter reads like the memoir of an ageing baron who, though past his gallant duels, still commands a formidable estate. Revenues fell 8%—a retreat largely traced to Paxlovid’s diminished returns now that the pandemic has ceased its starring role. But do not mistake contraction for collapse. Beneath the surface, one sees a firm tightening its corset, realigning costs and redistributing its wealth from old battles to future campaigns.
Adjusted EPS rose a crisp 12% to $0.92. Vyndaqel, Lorbrena, and even Comirnaty staged a revival. Xeljanz and Ibrance, alas, were not so lucky—bludgeoned by Medicare reforms and generics nipping at their heels. Still, Pfizer’s $4.5 billion cost-cutting scheme—augmented by an additional $1.2 billion in expected savings—signals not desperation but discipline. The capital is not squandered; it is being diverted prudently into the R&D stables, where fresh fillies like Padcev and Abrysvo await the track.
I shall watch closely whether these horses gallop or stumble, but for now, Pfizer remains a sound holding—an aristocrat in transition, downsizing the manor but preserving the land. And that, as any good banker knows, is where the true value lies.
Granny’s Verdict:Despite shrinking Paxlovid sales, Pfizer's pipeline pulses with promise and prudent cost controls—one applauds such restraint.
