Pfizer reports $11.4 billion profit in Dutch operations despite post-pandemic decline

Pharmaceutical giant Pfizer has recorded 11.4 billion dollars in profit from its Dutch subsidiary, C.P. Pharmaceuticals International C.V., during the fiscal year ending November 2023. While this represents a significant decline from pandemic-era earnings, the company's profits remain robust, driven by its global operations.

According to Pfizer’s latest annual report, the Dutch subsidiary oversees activities in around 60 countries, spanning from Algeria to Vietnam. The profits from these nations are funneled through the Netherlands, which acts as a financial hub for Pfizer’s operations outside the United States.

Pfizer’s global revenue fell sharply from 74.4 billion dollars in 2022 to 46.9 billion euros over the past year. The decrease is attributed to a substantial drop in demand for the company’s COVID-19 vaccine, Comirnaty, and its antiviral medication, Paxlovid. During the pandemic, governments worldwide purchased these products in bulk to combat the virus’s spread.

"The waning threat of COVID-19 is evident in the sales figures," the report states. Pfizer's Dutch arm, which had reported 19.9 billion dollars in profits in 2021/2022 and 18.7 billion dollars in 2020/2021, has now returned to pre-pandemic profit levels similar to 2019, when it earned 11.9 billion dollars.

Despite declining demand, COVID-19 vaccine sales continued to contribute significantly to Pfizer’s revenues. In 2023, the Dutch government purchased additional doses from Pfizer as part of its pandemic response efforts. Between 2020 and 2023, the Netherlands acquired 102 million doses of COVID-19 vaccines from multiple manufacturers at a total cost of 1.8 billion euros. More than half of these doses were supplied by Pfizer.

Pfizer projects reduced sales to governments in 2024 but plans to target commercial markets, particularly in lower-income countries where public procurement programs have largely ceased. In 2023, the company had already begun selling its COVID-19 vaccines directly to private entities in these regions.

Meanwhile, the sale of Paxlovid showed signs of recovery during a surge in COVID-19 cases in the United States in late 2023, boosting Pfizer's revenue in the fourth quarter.

With profits stabilizing at 11.4 billion dollars, Pfizer’s Dutch subsidiary is now on par with earnings reported before the pandemic, when the company was primarily known for producing Viagra. The figures highlight the transition of Pfizer's business model from pandemic-driven vaccine sales to a broader focus on other pharmaceutical products.