Pfizer Inc (NYSE:PFE, ETR:PFE)’s reliance on a rebound in demand for Covid-19 products in expectation-beating third-quarter results likely hit sentiment, according to Bank of America analysts.
Though the drug maker hiked guidance on better-than-estimated revenue on Tuesday, shares fell by 1.8% following the results.
This was “likely due to lingering concerns surrounding the durability of the Covid business and limited excitement surrounding current pipeline assets,” analysts noted.
Indeed, a $1.5 billion uplift to forecasted revenue over the year to between $61 billion and $64 billion was set to reflect combined revenue of $10.5 billion from Pfizer’s Comirnaty and Paxlovid Covid-19 products, the company had said.
Bank of America noted a range of Pfizer’s newer brands had gained traction over the third quarter, such as migraine medicine Nurtec, nerve disease product Vyndaqel and respiratory virus vaccine Abrysvo.
Obesity treatment remained the focus though, analysts said, highlighting Pfizer’s unveiling of a gastric inhibitory polypeptide receptor antagonist in its post-earnings call.
“This is still in the early phases and little is known on the profile,” the bank said, adding an update on Pfizer’s lead obesity asset Danuglipron was expected early next year.
Bank of America lifted its earnings and revenue forecasts for 2024 to $63.0 billion and $2.87 per share respectively, from $60.8 billion and $2.60, on the back of the update.
Analysts reiterated a ‘neutral’ rating alongside a $35 share price target, but noted adjustments were made for the likes of stronger Covid sales.
Shares traded flat at $28.50 on Wednesday.