Alright, let's get one thing straight: Pfizer's Q3 earnings are out, and everyone's wetting their pants over the fact that they "beat expectations." Give me a break.
So, yeah, they made $0.87 per share when everyone thought they'd only scrape together $0.63. Revenue was also slightly above estimates at $16.65 billion. But before we start popping champagne, let's remember that revenue decreased 6% compared to last year. A decrease! And net income? Down from $4.47 billion to $3.54 billion. So, they're making less money, but we're supposed to be impressed?
I mean, seriously, are we all just going to ignore the elephant in the room? The COVID gravy train is slowing down. Comirnaty sales are down 19%, and Paxlovid got hammered, dropping 55%. Sure, Eliquis and Vyndaqel are picking up the slack, but is that sustainable? Can they really keep squeezing blood thinner profits to make up for the pandemic cash cow drying up? I don't know, can they?
And what's with the full-year profit guidance? They raised it, but kept revenue guidance the same. Translation: they're cutting costs like a bunch of maniacs to prop up the bottom line. Which brings me to...
Pfizer is patting themselves on the back for being on track to slash $7.7 billion in costs by 2027. $4.5 billion of that is supposed to happen by the end of 2025. Great. So, what does that really mean? Layoffs? R&D cuts? Less investment in future innovation? I'm betting on all three. They expect us to believe this nonsense, and honestly...
It's like rearranging deck chairs on the Titanic, ain't it?
Oh, and let's not forget the little bidding war they're in with Novo Nordisk for Metsera, the obesity biotech company. And the two lawsuits Pfizer filed against Novo Nordisk, claiming anticompetitive behavior. Pfizer's CEO, Albert Bourla, thinks Novo Nordisk's offer is "illusory" and violates antitrust law. Maybe he's right, maybe he's just pissed he's losing out. Either way, it smells like desperation.
Then there's the deal with President Trump to sell medications for less. A three-year grace period from pharmaceutical-specific tariffs in exchange for investing $70 billion in U.S. manufacturing. Sounds good on paper, right? Reshoring jobs, lowering drug prices... But it's going to dilute their 2026 outlook. And Eliquis is going to face new negotiated prices in Medicare.
Is this some kind of attempt to score points with the government? A way to look like the good guys while quietly raking in billions? Offcourse it is.
Meanwhile, members of Congress have been trading $PFE stock like it's going out of style. Three purchases, four sales in the last six months. Rep. Gilbert Ray Cisneros, Jr., Rep. Lisa C. McClain, Senator Ron Wyden, Rep. Josh Gottheimer, Rep. Robert Bresnahan... the list goes on. Are they betting on Pfizer's success, or are they just cashing out before the whole thing implodes? Maybe I'm just being cynical.
Look, Pfizer tops estimates, raises profit guidance even as sales fall - CNBC might have "beat expectations" this quarter, but the writing's on the wall. The COVID boom is over, and they're scrambling to find the next big thing. Cost-cutting, acquisitions, political maneuvering... it's all a smokescreen. The stock is hovering near key resistance levels, but it's down 7% for the year. Investors are "closely watching for a potential breakout," but I wouldn't hold my breath. This ain't a breakout; it's a slow, agonizing decline.
