Pfizer reported fourth-quarter earnings and revenue that beat expectations, driven by stronger-than-expected Covid product sales and cost-cutting efforts.

The company posted adjusted earnings per share of 63 cents, surpassing the expected 46 cents, with revenue reaching $17.76 billion, higher than the $17.36 billion forecasted.

Shares of Pfizer rose 2% in premarket trading.

The company has been cutting costs to recover from the decline of its Covid business and expects $500 million in savings this year.

Fourth-quarter net income was $410 million, or 7 cents per share, compared to a $3.37 billion loss a year ago.

Pfizer reiterated its 2025 outlook, forecasting sales between $61 billion and $64 billion but warned that Medicare changes would reduce revenue by $1 billion.

Wall Street is focused on Pfizer’s long-term financial health and its potential entry into the weight loss drug market with its obesity pill, danuglipron.

The company avoided a proxy battle with activist investor Starboard Value, which holds a $1 billion stake.

Covid product sales exceeded estimates, with Paxlovid generating $727 million, driven by U.S. demand and a government contract, CNBC has reported.

Pfizer’s Covid vaccine brought in $3.4 billion, down $2 billion from the previous year due to lower global vaccination rates.

Written by B.C. Begley