Pfizer Inc. (NYSE:PFE) stock fell 1.02% (As on May 3, 11:45:10 AM UTC-4, Source: Google Finance)  after the company reported higher-than-expected first-quarter revenue and profit, buoyed by demand for its COVID-19 products, and reaffirmed its 2023 earnings forecast as it banks on newer drugs to contribute to growth later this year. The company would become more balanced with allocating capital after a string of deals in the last two years once its recent $43 billion buyout of Seagen closes. COVID-19 vaccine sales plunged 77% to $3.06 billion in the quarter, but topped diminished estimates of $2.37 billion, according to Refinitiv data. Sales of antiviral Paxlovid nearly tripled to $4.07 billion, bolstered by demand in China. Analysts’ had estimated $3.13 billion for the quarter.

PFE in the first quarter of FY 23 has reported the adjusted earnings per share of $1.23, beating the analysts’ estimates for the adjusted earnings per share by 25 cents. The company had reported 29 percent fall in the adjusted revenue growth to $18.3 billion in the fourth quarter of FY 20, beating the analysts’ estimates for revenue of $16.59 billion.

The company expects 2023 to be a low point for COVID product sales, before potentially returning to growth in 2024. But sales of both its vaccine and oral antiviral treatment came in above Wall Street estimates. Pfizer still expects significantly lower sales of COVID products in the second quarter. Pfizer is pumping billions of dollars into research and acquisitions to mitigate an anticipated $17 billion hit to revenue by 2030 from patent expirations for top drugs, and a decline in demand for COVID products.

Pfizer remains on track to achieve its goal of 7% to 9% non-COVID revenue growth this year, driven by newer drugs. Given that many launches are expected to occur in the third- and fourth-quarters of 2023, the company anticipates that the non-COVID revenues will grow more quickly in the back half of the year. The company is preparing to launch an RSV vaccine, an ulcerative colitis treatment and a hair loss drug by the end of this year, pending U.S. approval.

Pfizer expects a 2023 profit of $3.25 to $3.45 per share and COVID products sales of about $21.5 billion.

In addition, the company has announced that the Alliance between Merck KGaA, Darmstadt, Germany, (Merck KGaA) and Pfizer to co-develop and co-commercialize Bavencio (avelumab) will terminate.