Pfizer's share price jumped by 1 per cent in premarket trading as the company said third-quarter net profit soared on the strong performance of its vaccine manufacturing arm, which prompted the drug maker to raise its 2021 forecast.
New York-based Pfizer’s net profit increased to $8.15 billion in the three months to the end of September, from $1.46bn in the same period last year, beating analyst estimates. It was up 46.4 per cent on a quarterly basis.
Revenue more than doubled annually to more than $24bn, exceeding analysts’ estimates of $22.8bn. The company raised its coronavirus vaccine sales forecast for 2021 to $36bn.
“While we are proud of our third-quarter financial performance, we are even more proud of what these financial results represent in terms of the positive impact we are having on human lives around the world,” said Albert Bourla, Pfizer’s chairman and chief executive.
Pfizer said it remains on track to achieve its goal of delivering at least two billion Pfizer-BioNTech vaccine doses, marketed as Comirnaty, to low- and middle-income countries by the end of 2022.
“At least one billion [doses] to be delivered this year and one billion next year, with the possibility to increase those deliveries if more orders are placed by these countries for 2022,” Mr Bourla said.
One billion of these doses will be supplied to the US government at a not-for-profit price to be donated to the world’s poorest nations.
“Our ultimate goal is to help bring this pandemic to an end as quickly as possible, but also to apply the lessons we have learnt through our work on the vaccine to all of our therapeutic areas. We look forward to providing future updates on these efforts,” Mr Bourla said.
More than 75 per cent of the sales the company recorded through the third quarter for Comirnaty have come from supplying countries outside the US.
Pfizer’s vaccine manufacturing arm added more than 60 per cent to the overall revenue. It registered 749.3 per cent year-on-year jump in sales to $14.6bn in the third quarter.
Its internal medicine unit sales surged 1 per cent yearly to more than $2bn in the three-month period. Revenue from the oncology unit increased by almost 12 per cent on an annual basis to more than $3bn.
The company’s hospital unit contributed almost $2.4bn in sales, almost 32 per cent more than the prior year period.
All units of Pfizer showed good growth in the third quarter, except the company’s inflammation and immunology department that added more than $1bn in sales, a yearly drop of 7 per cent.
The company now expects its full-year revenue in the range of $81bn to $82bn, compared with $78bn to $80bn announced earlier.
Adjusted earnings per share are projected to reach $4.1 to $4.2, up from the previous prediction of $3.9 to $4. The company expects to deliver more than 2.3 billion vaccine doses this financial year, earning $36bn.
“We continue to make progress on advancing our internal pipeline across all therapeutic areas while also prudently deploying our capital through partnerships and bolt-on acquisitions,” said Frank D’Amelio, chief financial officer and executive vice president for global supply at Pfizer.
It will help the company “to gain access to cutting-edge platforms, science and technologies that could potentially bolster our growth in the latter half of this decade”, he added.
During the first nine months of the fiscal 2021, Pfizer paid $6.5bn of cash dividends, or $1.17 per share of common stock, which represents an increase in dividends per share of 3 per cent compared to the same period last year.
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Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Also on December 7 to 9, the third edition of the Gulf Car Festival (www.gulfcarfestival.com) will take over Dubai Festival City Mall, a new venue for the event. Last year's festival brought together about 900 cars worth more than Dh300 million from across the Emirates and wider Gulf region – and that first figure is set to swell by several hundred this time around, with between 1,000 and 1,200 cars expected. The first day is themed around American muscle; the second centres on supercars, exotics, European cars and classics; and the final day will major in JDM (Japanese domestic market) cars, tuned vehicles and trucks. Individuals and car clubs can register their vehicles, although the festival isn’t all static displays, with stunt drifting, a rev battle, car pulls and a burnout competition.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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What is 'Soft Power'?
Soft power was first mentioned in 1990 by former US Defence Secretary Joseph Nye.
He believed that there were alternative ways of cultivating support from other countries, instead of achieving goals using military strength.
Soft power is, at its root, the ability to convince other states to do what you want without force.
This is traditionally achieved by proving that you share morals and values.
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