Pfizer's Paxlovid Powers Profit Surge Amidst Activist Pressure

Pfizer reported higher-than-expected profits driven by strong Paxlovid sales, offsetting a decline in COVID vaccine sales. The company raised its annual forecasts following these results, signaling confidence amidst activist investor scrutiny. Despite past challenges, Pfizer remains focused on cost-cutting and bolstering business through strategic deals.

Pfizer, the U.S. pharmaceutical giant, announced unexpectedly robust profits on Tuesday, primarily fueled by strong sales of its COVID treatment Paxlovid. This development is seen as a crucial victory for Chief Executive Albert Bourla, amid mounting pressure from activist investor Starboard.

The company has faced declining sales of its COVID vaccine and antiviral Paxlovid since the heights of the pandemic, which prompted them to initiate a cost-cutting program and pursue strategic deals to strengthen their business. In response, Pfizer noted that the surge in Paxlovid sales was a result of higher infection rates and effective commercial execution.

Despite setbacks, including disappointing data for an experimental obesity drug, Pfizer continues to explore new opportunities in an evolving market. The firm has already increased its full-year revenue forecast for its COVID products, indicating renewed investor confidence and aiming to deliver substantial cost savings this year.

(With inputs from agencies.)