Global pharmaceutical company Pfizer has reported a decline in its first-quarter profit, attributing the drop to increased spending on research and development as it accelerates efforts to expand its pipeline of new treatments.
In its latest financial update released Tuesday, the company posted a nine per cent drop in profit to $2.7 billion, despite recording a five per cent increase in revenue, which rose to $14.5 billion during the period.
The company said stronger sales from key products, including the blood thinner Eliquis and bladder cancer therapy Padcev, helped cushion the impact of a sharp decline in revenue from COVID-19-related products, which had previously driven earnings.
Chief Executive Officer Albert Bourla said the company is making steady progress in developing new therapies, particularly in oncology and obesity treatment, areas it considers critical to its long-term growth strategy.
He highlighted contributions from Pfizer’s acquisition of oncology-focused firm Seagen, noting that ongoing clinical work is advancing treatments for conditions such as multiple myeloma and breast cancer. The company is also building on its November 2025 Metsera transaction, which is focused on developing weight-loss drugs.
According to Bourla, these initiatives are aimed at positioning Pfizer as a leading player in the next generation of obesity therapies, a rapidly growing segment of the global pharmaceutical market.
The company’s research and development expenditure rose by 12 per cent in the first quarter, reflecting intensified investment in new drug development, particularly in cancer and metabolic disease treatments.
Despite the decline in profit, Pfizer maintained its full-year financial outlook and expressed confidence in its future growth trajectory. Chief Financial Officer David Denton said the company’s ongoing product launches and pipeline advancements are expected to support sustained growth in the coming years.
While Pfizer continues to reward shareholders through dividend payments, it has paused share buyback programmes and indicated that no repurchases are planned for 2026.
Shares of the company recorded a modest 0.6 per cent increase in pre-market trading following the announcement, reflecting cautious investor optimism about its long-term strategy.
