Pfizer provides full-year 2025 guidance

US pharma giant Pfizer (NYSE: PFE) has provided its full-year 2025 guidance and reaffirmed its October 29, 2024 full-year 2024 guidance, which was largely in line with expectations but still pushed its shares up 4.7% to $26.43 by close of trading on Tuesday.

The company says it anticipates full-year 2025 revenues to be in the range of $61.0 to $64.0 billion, which includes the expectation of revenues from its COVID-19 products in 2025 being largely consistent with 2024 after excluding around $1.2 billion of non-recurring revenue for the covid treatment drug Paxlovid (nirmatrelvir/ritonavir) in 2024. Pfizer expects full-year 2025 operational revenue growth, year-over-year, in a range of approximately flat to 5% from the midpoint of 2024 baseline guidance, which excludes 2024 non-recurring items.

Pfizer noted that the 2025 Revenue guidance takes into consideration the anticipated net unfavorable impact to revenue of approximately $1 billion, year-over-year, related to the Inflation Reduction Act (IRA) Part D Redesign changes that take effect in 2025. The IRA makes significant changes to the Medicare Part D benefit design, which will impact Pfizer revenue in 2025, including: an expected favorable impact from the $2,000 annual out-of-pocket cap and new Prescription Payment Plan, more than offset by an expected unfavorable impact from the sunsetting of the Coverage Gap Discount Program and the addition of new manufacturer discounts in the initial and catastrophic coverage phases.