(Reuters) -Pfizer reported a surprise quarterly profit on Tuesday, helped by its cost-cutting measures and as the U.S. government returned fewer courses of COVID treatment Paxlovid than it had expected.
The U.S. drugmaker recorded a $3.5 billion revenue reversal related to the treatment during the period for the return of about 6.5 million courses.
Pfizer had forecast a $4.2 billion non-cash charge based on the return of around 7.9 million courses at the end of 2023.
The company earned 10 cents per share on an adjusted basis for the fourth quarter. Analysts on average had expected a loss of 22 cents per share, according to LSEG data.
Investors fled Pfizer last year as pandemic worries declined and billions of dollars in COVID vaccine and treatment sales disappeared.
The exodus worsened with a setback in its experimental obesity drug, driving shares down to levels seen during the pandemic sell-off of 2020 and wiping out $100 billion in market capitalization in 2023.
Revenues from its COVID products, antiviral treatment Paxlovid and COVID vaccine Comirnaty, came in at $12.5 billion for 2023, meeting the company’s own targets for the year.
However, sales for the products were down 78% from their $57 billion peak in 2022.
Pfizer makes the Comirnaty vaccine with German partner BioNTech.
The drugmaker is targeting a return to profitability through a $4 billion cost-cutting program and internal restructuring.
With the cuts in place, it expects to grow revenue through its cancer treatments, including from its $43 billion acquisition of cancer drugmaker Seagen, and its new RSV vaccine.
Pfizer recorded research expenses of $2.82 billion in the quarter, down 22% from a year earlier.
Shares of the company were up 1.2% in premarket trading.
(Reporting by Bhanvi Satija and Sriparna Roy in Bengaluru and Michael Erman in New York; Editing by Sriraj Kalluvila)
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