Pfizer reported a dip in profits on Tuesday, primarily due to lower sales of its Covid-19 therapeutic drug, Paxlovid. According to AFP, sales of Paxlovid experienced a significant decline of 75 percent, attributed to reduced Covid-19 infections and decreased government purchases of the medication.

Despite the drop in Paxlovid sales, Pfizer saw increased revenues from its Covid-19 vaccine and other products, including the heart medication Vyndaqel and the cancer drug Padcev. However, the overall impact resulted in a five percent decrease in profits for the first quarter, amounting to $3.0 billion. Revenues also fell by eight percent, totaling $13.7 billion.

Pfizer Chief Executive Albert Bourla addressed the company's decision to discontinue the Danuglipron obesity drug earlier in the month. This decision was made after a participant in a trial experienced a liver injury, which subsequently cleared up after the treatment was stopped. Bourla emphasized that it was the right call and indicated that Pfizer is actively developing other medications for obesity and related areas. The company is also open to exploring external opportunities such as partnerships or acquisitions.

In addition to obesity treatments, Pfizer is focusing on developing treatments for various other ailments, including bladder cancer and multiple myeloma. Bourla stated that the company is on track for a strong year of anticipated pipeline catalysts.

The drugmaker has maintained its full-year sales forecast of between $61-64 billion. In 2024, Pfizer's revenues were $63.6 billion. However, the projection does not currently include any potential impact related to future tariffs and trade policy changes, which the company is unable to predict at this time.

Pfizer also announced that it is on track to deliver $4.5 billion in cost savings through the end of 2025. The company is implementing a reorganization of its research and development efforts, as well as a manufacturing optimization program. Following the announcement, shares rose 0.5 percent in pre-market trading.