In 2023, Pfizer reported total revenues of $58.5 billion, a significant decrease of 42% compared to 2022. This decrease was primarily driven by substantial declines in revenues from their products Comirnaty and Paxlovid, including a non-cash revenue reversal for Paxlovid recorded in the fourth quarter of 2023. Excluding contributions from Comirnaty and Paxlovid, total revenues actually increased by 7% operationally.
The net cash flow from operations in 2023 was $8.7 billion, representing a 42% decrease compared to 2022 and a 70% decrease compared to 2021. This decline in cash flow from operations is a significant metric to watch, as it indicates the company's ability to generate cash from its core business activities.
The reported diluted earnings per share (EPS) for 2023 was $0.37, while the adjusted diluted EPS (non-GAAP) was $1.84. The adjusted diluted EPS saw a decrease of 93% compared to 2022 and a decrease of 72% compared to 2021.
The company's income from continuing operations before provision for taxes on income decreased to $1.1 billion in 2023 from $34.7 billion in 2022. This significant decrease was primarily due to lower revenues, higher intangible asset impairment charges, and increases in restructuring charges and certain acquisition-related costs, amortization of intangible assets, and selling, informational, and administrative expenses.
Pfizer's 2023 performance was impacted by challenges in their operating environment, including regulatory pressures, patent expirations, and government price constraints. The company is also facing industry-specific challenges related to pipeline productivity, intellectual property rights, and collaboration/licensing rights.
To address these challenges and drive future growth, Pfizer is focusing on achieving world-class oncology leadership, delivering the next wave of pipeline innovation, maximizing the performance of their new products, expanding margins by realigning their cost base, and allocating capital to enhance shareholder value.
In 2023, Pfizer completed the acquisition of Seagen and made changes in their commercial organization to incorporate Seagen and improve focus, speed, and execution. They also began taking steps through their "Transforming to a More Focused Company" restructuring program to optimize their R&D operations and launched a multi-year, enterprise-wide cost realignment program to realign their costs with longer-term revenue expectations.
Overall, Pfizer's 2023 financial performance reflects the impact of various internal and external factors on their operations and the measures they are taking to navigate these challenges and drive future growth. As a result of these announcements, the company's shares have moved -0.4% on the market, and are now trading at a price of $27.57. For more information, read the company's full 10-K submission here.
