BIG PHARMA EARNINGS WATCH: PFIZER & GLAXOSMITHKLINE

Big Pharma Giants Continue Q4 Earnings Besting Wall Street Expectations

Pfizer and GlaxoSmithKline (GSK) are the latest Big Pharma giants to report Wall Street-besting earnings for the fourth quarter of 2023. Both companies topped analysts’ expectations after hiking prices on blockbuster products throughout the year. One key area for both companies was their recently launched respiratory syncytial virus (RSV) vaccines, which brought in massive profits for both firms. Both companies targeted their RSV vaccines with price increases even before they were widely available to patients.

Pfizer

• Pfizer announced first quarter earnings that topped Wall Street’s expectations.
• The pharmaceutical giant posted revenue of $14.25 billion for the quarter.
• Excluding Covid products, revenue grew 8 percent in Q4.
• Pfizer’s RSV vaccine Abrysvo performed particularly well, bringing in $515 million for the company.
• Other strong performers included blood thinner Eliquis, which brought in $1.61 billion, and Vyndaqel, a drug that treats cardiomyopathy, which brought in an additional $961 million.

GlaxoSmithKline

• GlaxoSmithKline reported sales and earnings that bested Wall Street analysts’ estimates for Q4.
• The company brought in $10.22 billion for the fourth quarter, up from $9.21 billion the year prior.
• Sales of the company’s RSV vaccine Arexvy reached $671 million in the quarter, and over $1.5 billion for the year, making Arexvy a “blockbuster in its first year on the market.”
• The success of Arexvy helped GSK’s vaccine division “deliver a 25 percent increase in sales” year over year.

The strong earnings come as both drug makers have launched significant price hikes in recent years – including at the start of this year. Both companies have also engaged in a scheme to increase prices “in lockstep” on their new RSV vaccine products.

 Pfizer

• Pfizer has already hiked prices on almost 100 prescription drugs this year.
• Price hikes so far this year include a 6 percent increase on breast cancer drug IBRANCE, a 7 percent increase on cardiomyopathy drug Vyndaqel and a 4.9 percent increase on arthritis drug Xeljanz.
• In 2023, Pfizer hiked drug prices on 122 medications and in 2022 the company hiked prices on 168 prescription products in their portfolio.

GlaxoSmithKline

• GSK has already hiked prices on more than 23 prescription drugs this year, including on its blockbuster Shingrix vaccine product by 7 percent.
• In 2023, GSK hiked prices on 39 products, and in 2022, increased prices on over 40 products.

Pfizer & GlaxoSmithKline’s RSV Vaccine Price Hike Scheme

• The U.S. Food and Drug Administration (FDA) approved two RSV vaccines for older Americans last May, GSK’s Arexvy and Pfizer’s Abrysvo.
• Ahead of Arexvy’s approval, GSK said it anticipated pricing the shot somewhere between $60 and $185. Immediately following FDA approval, GSK indicated their price would land in the higher end of the range, above $120.
• Then, as Pfizer shared a price range of $180 to $270 with advisors for the U.S. Centers for Disease Control (CDC), GSK shared a new range, increasing their projected price to be between $200 and $295 — despite indicating a high-end of $185 just weeks before.
• At the CDC advisor meeting, Pfizer also hinted at further increases to the price of their shot by refusing to even commit to staying within the range they offered. “Among other concerns, some of the committee members were unhappy that Pfizer would not commit to a price for its vaccine,” CNN reported.

Read more on Q4 earnings from Johnson & Johnson HERE.

Read more on Pfizer and GSK’s RSV vaccine price hiking scheme HERE.

And stay tuned as we continue to monitor earnings calls from Big Pharma for Q4 of 2023 over the next few weeks.

Learn more about solutions to lower prescription drug prices and hold Big Pharma accountable HERE.