Pfizer, the world's largest pharmaceutical entity from US, has clocked net profit of US$ 14,095 million during the second quarter ended June 2013 as against $3,253 million in the corresponding period of last year on account of separation of Animal Health Business (Zoetis). Its profit from continuing operations (without taking into consideration income from Animal Health Business) increased by 19 per cent to $3,575 million from $3,000 million. However, its revenues declined by 7 per cent to $12,973 million from $13,968 million.
The company repurchased $3.3 billion of common stock in second quarter and its EPS worked out to $1.98 as against $0.43 in the same quarter of last year.
The sales of primary care division declined by 17.1 per cent to $3,333 million from $4,018 million and that specialty care declined by 3 per cent to $3,378 million from $3,497 million. The sales of established products also declined by 11 per cent to $2,385 million. Its revenues in US declined by 4 per cent to $5,090 million and that in international markets declined by 9 per cent to $7,883 million. Similarly its sales in developed Europe declined by 11 per cent to $2,913 million. Emerging market sales moved up by one per cent to $2,862 million.
The sales of Lipitor declined to $545 million during the second quarter ended June 2013 from $ 1,220 million in the same period of last year. Lipitor sales in US declined sharply by 71 per cent $86 million from $296 million. The sales of Norvasc and Prevnar/Prevenar family declined by 10 per cent and 3 per cent respectively during the quarter. The sales of Lyrica moved up by 10 per cent to $1,134 million
Ian Read, chairman and CEO said, “I am pleased with our recent accomplishments focused on creating greater value for our shareholders, including the completion of the full disposition of Zoetis which generated over $17 billion in value as well as the announcement of our new commercial model. The new model represents the next step in Pfizer's journey to further revitalize our innovative core, enhance the value of our consumer and off-patent established brands and maximize the use of our capital to create value for Pfizer and our patients, consumers and shareholders.”
“Within our innovative businesses, during second quarter 2013, revenues in our Oncology business increased 28 per cent operationally due to the uptake of new products, primarily Inlyta and Xalkori in several major markets, and various key products performed well, notably Lyrica, which grew 14 per cent operationally in developed markets, and Celebrex, which grew 13 per cent in the US. WE continue to expect our Emerging Markets business growth to accelerate in the second half of the year, led by China.
The company has announced plan to create separate, internal, global innovative and value businesses into three business segments, two of which will include innovative business lines and a third which will include the value business line. Each of the three segments will include developed markets and emerging markets. The changes will be implemented in fiscal 2014 in countries that do not require a consultation wit works councils or unions. Beginning with the first-quarter 2014 financial results, the company will provide greater financial transparency for each segment.
For the first half ended June 2013, Pfizer's revenue declined by 9 per cent to $25,383 million from $27813 million in the similar period of last year. It reported net profit of $16,845 million as against $5,047 million. Net income, without considering discontinued operations, moved up by 36 per cent to $6,191 million.