Replies to post #250048 on Biotech Values

[DewDiligence]

PFE 2024-guidance addendum—2024 non-GAAP EPS guidance of $2.05-2.25 includes a negative $0.40 hit from the SGEN acquisition.

Almost all of this $0.40 EPS hit stems from the incremental interest expense on the $43B of net debt ($31B in new debt [#msg-171926253] plus $12B cash usage) to finance the SGEN acquisition. Excluding the incremental interest expense, SGEN’s 2024 contribution to PFE’s 2024 EPS will be close to breakeven.

[Mufaso]

PFE - Mask Mandates are coming back as Covid cases and hospitalizations rise.

(PFE) Anticipates Approximately $8 Billion in Revenues for Comirnaty and Paxlovid

Mask mandates have been reinstated in healthcare systems across several U.S. states as cases and hospitalizations of respiratory illnesses—including Covid, the flu and RSV–continue to increase nationwide.

https://www.forbes.com/sites/ariannajohnson/2024/01/04/heres-where-mask-mandates-are-coming-back-as-covid-cases-and-hospitalizations-rise/

Illinois: After the Illinois Department of Public Health recommended masks in healthcare facilities and advised these facilities to “step up” their efforts in December, several hospital systems like Cook County Health—which includes Chicago—and Endeavor Health began requiring masks, and Chicago-based Rush University Medical Center announced Tuesday it will require all visitors, patients and staff to wear masks in some areas on campus like hospital waiting rooms.

Massachusetts: Berkshire Health System in Massachusetts announced it would begin requiring masks in its facilities starting Wednesday due to “significant levels” of respiratory illnesses; almost 17% of the 65,956 emergency room visits in the state were related to respiratory illnesses between Dec. 17, 2023 and Dec. 23, 2023.

New York: New York City reinstated a mask mandate in all of its 11 public hospitals, 30 health centers and five long-term care facilities, New York City Health Commissioner Ashwin Vasan...

California: Los Angeles County—which requires masking in healthcare settings when the county reaches the medium level for Covid hospitalizations (defined by the Centers for Disease Control as between 10-19.9 new COVID hospital admissions per 100,000 over seven days)—reinstated the mandate last month when it hit that level.

[DewDiligence]

PFE reports 4Q23 results—re-iterates 2024 guidance:

https://www.pfizer.com/news/press-release/press-release-detail/pfizer-reports-full-year-2023-results-and-reaffirms-full

4Q23 revenue was $14.2B, -42% YoY—but +8% YoY excluding COVID-related revenue. 4Q23 COVID-related revenue was $2.2B, down from $13.2B in 4Q22.

4Q23 GAAP and non-GAAP EPS were ($0.60) and $0.10, respectively. Both the GAAP and non-GAAP figures include a ($0.54) hit from the previously reported $3.5B reversal of Pavlovid sales to the US government; 4Q23 GAAP EPS (but not non-GAAP EPS) also includes a $1.4B non-cash writedown for Etrasimod (due to more conservative assumptions about new indications) and a $1B non-cash writedown for Prevnar-13 (which is now an obsolete product due to Prevar-20).

2024 guidance remains as per PFE’s press release of 12/13/23 (#msg-173417828). 2024 non-GAAP EPS guidance of $2.05-2.25 includes a negative $0.40 hit from SGEN, most of which stems from the net interest expense on the $43B of net debt PFE took on to fund the acquisition.

Note: The SGEN acquisition closed on 12/14/23, so SGEN’s sales and earnings were included in PFE’s 4Q23 results for only about 15% of the period, contributing ~$200M to sales.


4Q23 CC slides:
https://investors.pfizer.com/files/doc_financials/2023/q4/Q4-2023-Earnings-Charts-FINAL.pdf

CC prepared remarks (synched with slides):
https://s28.q4cdn.com/781576035/files/doc_financials/2023/q4/Q4-2023-Earnings-Conference-Call-Prepared-Remarks-FINAL.pdf