By Mariam Sunny and Christy Santhosh
May 5 (Reuters) - Pfizer said on Tuesday that it expects to return to stronger growth after 2028, driven by obesity drugs in development, a patent extension for its heart drug Vyndamax and a favorable European court ruling on its COVID-19 vaccine.
The New York-based drugmaker also beat Wall Street expectations for first-quarter revenue and profit, buoyed by strong demand for its blood thinner Eliquis and recently acquired products, as it faces looming patent expirations
and fading COVID product sales amid tighter U.S. vaccine recommendations.
While there are several drugs in the company's pipeline "that could make the story more interesting over time," investors will need to see more clinical data and reduced risk around those programs before sentiment improves, J.P.Morgan analyst Chris Schott said.
OBESITY PUSH
Pfizer's first obesity drug from its $10 billion purchase of Metsera, if successful in trials, would not reach the market before 2028.
"We have unique capabilities as a company to win in this area both in terms of our ability to activate consumers and patients in very different ways," Chief U.S. Commercial Officer Aamir Malik said of the obesity market some analysts see exceeding $100 billion a year in the next decade.
He noted that Pfizer sales teams already deal with almost 60% of the physicians who are likely to write obesity-drug prescriptions.
CEO Albert Bourla said Pfizer was surprised by "how big the international market is" after seeing weight-loss market leader Eli Lilly's quarterly report last week.
Lilly reported sales of its GLP-1 obesity and diabetes products that far exceeded Wall Street expectations, driven by higher volumes across markets, including overseas.
Pfizer expects to tap growth in emerging markets such as Brazil and Mexico, where it has a strong primary-care presence.
Pfizer's first-quarter results saw a boost from new and acquired medicines, including cancer drug Padcev and migraine treatment Nurtec ODT.
Citi analyst Geoff Meacham said the 22% growth in newly launched and acquired products demonstrates "the commercial portfolio's ability to offset ongoing COVID franchise declines."
Total sales of $14.45 billion for the first quarter topped estimates of $13.79 billion.
The company settled patent disputes with three generic drugmakers over Vyndamax last week, effectively delaying cheaper copies from entering the market through mid-2031.
Bourla said the settlements have the potential to change the growth profile of the company significantly after 2028, giving it confidence it will achieve a high-single-digit compounded annual growth rate for a five-year period beginning in 2029.
Last month's COVID court ruling in Europe, which requires Poland and Romania to accept 1.9 billion euros ($2.22 billion) worth of COVID vaccines made by Pfizer and partner BioNTech, will also help.
Pfizer said on Tuesday it will advance a next-generation pneumococcal vaccine for adults, designed to protect against 35 strains of the bacteria, with clinical development expected to begin this year.
BEAT BUT NO RAISE
The company posted an adjusted profit of 75 cents per share, topping Wall Street estimates by 3 cents.
Despite the modest profit beat, Pfizer maintained its full-year forecast of $59.5 billion to $62.5 billion in revenue and a profit of $2.80 to $3.00 per share, and shares were down less than 1%.
"The beat buys credibility and should drive near-term support... but Pfizer remains a catalyst story, not an earnings story," RBC Capital analyst Trung Huynh said.
Sales of blood thinner Eliquis, which Pfizer sells with Bristol Myers Squibb, came in at $2.17 billion, compared with estimates of $1.76 billion.
Vyndamax generated $1.6 billion in sales in the first quarter, slightly below expectations.
Sales of COVID vaccine Comirnaty were $232 million, down 59% from a year earlier and below expectations of $434 million.
($1 = 0.8554 euros)
(Reporting by Mrinalika Roy, Mariam Sunny and Christy Santhosh in Bengaluru and Michael Erman in New Jersey; Editing by Anil D'Silva and Bill Berkrot)
