Pfizer has posted lower net profit as well as revenues during the third quarter ended September 2013 on account of loss of product exclusivity and the challenging operating environment. Its net profit declined by 19.3 per cent to US$ 2,590 million from $3,208 million in the corresponding period of last year. Its revenues also declined by 2.4 per cent to $12,643 million from $12,953 million to lower sales of Lipitor, Viagra, and the ongoing expiration of the Spiriva collaboration in certain countries, and decreased government purchases of Prevnar and Enbrel in certain emerging markets.
The sales of primary care declined by 9.7 per cent to $3,259 million during the quarter under review from $3,610 million in the same period of last year. The sales of specialty care division moved down to $3,349 million from $3,406 million. Oncology product sales increased by 24 per cent to $407 million from $329 million.
The company's revenues in emerging markets improved by 5 per cent due to volume growth in China. However, the revenues were negatively impacted by decreased government purchases of Prevnar and Enbrel and cost-containment measures in emerging markets. Full-year 2013 operational revenue growth in emerging markets is expected to be a mid-single-digit percentage.
Ian Read, chairman and CEO, stated, “Overall, I am very pleased with our continued and steady progress, on many fronts, to drive greater value for our shareholders. We continue to generate solid financial results on an operational basis, despite the impact of product losses of exclusivity and the ongoing expiration of the Spiriva collaboration in certain countries as well as the challenging operating environment. Within our innovative businesses, during third-quarter 2013, revenues from our oncology business increased 26 per cent operationally due to the continued strong performance of new products, primarily Inlyta and Xalkori in several major markets. In addition, other key patent-protected products performed well operationally, notably Lyrica, which grew 11 per cent, and Celebrex, which grew 13 per cent.”
“Over the next several months, we expect to report key clinical data read-outs that will more clearly characterize the strength of our late-stage pipeline. These data read-outs will be across a broad range of both additional indications for currently marketed products and novel compounds, including Prevnar 13 in adults, Xeljanz (psoriasis), dacomitinib, palbociclib, and the staphylococcus aureus vaccine, among others.”
Pfizer announced plans to internally separate its commercial operations into three businesses, which will be called the Global Innovative, Pharmaceutical business, The global vaccines, oncology and consumer healthcare business, and the global established pharmaceutical business. Each of the three business will include developed markets and emerging markets. In most countries, the changes will be implemented in fiscal 2014.
For the nine months ended September 2013, Pfizer's revenues declined by 6.7 per cent to $38,026 million from $40,766 million in the similar period of last year. Its net profit increased sharply to $19,435 million from $8,255 million basically due to divestment of its animal health business which generate income of $10,719 million. R&D expenditure declined by 10.9 per cent to $4,867 million from $5,461 million. The sales of Lipitor and Viagra declined by 18 per cent ad 28 per cent during the nine months period to $455 million and $166 million respectively. Similarly, sales of Prevnar family declined by 4 per cent to $490 million from $509 million
Frank D’Amelio, chief financial officer, stated, “For the first nine months of 2013, our financial performance has been in line with our expectations. Given these results and our continued confidence in the business, we are narrowing the ranges for certain components of our 2013 financial guidance. Also, with our continued strong operating cash flow and proceeds generated from the separations of our nutrition and animal health businesses, we continue to expect to repurchase in the mid-teens of billions of dollars of our common stock this year, with $13.1 billion repurchased through October 28. Additionally, we will pay approximately $6.5 billion in dividends.”