Pfizer has failed to generate positive growth in sales and profits during the first quarter ended March 2014. Its net profit declined sharply by 15 per cent to $2,329 million from $2,750 million in the corresponding period of last year. Its net sale also moved down by 9 per cent to $11,353 million from $12,410 million. With lower net profit, its EPS declined to $0.35 from $0.36 in the last period.
For the beginning of fiscal year 2014, the company began managing its commercial operations through a new global commercial structure consisting of three operating segments viz., the global innovative pharmaceutical segment (GIP), the global vaccines, oncology and consumer healthcare segment (VOC), and the global established pharmaceutical segment (GEP).
The sales of GEP declined by 13 per cent to $5,990 million from $6,861 million and that of GIP declined by 7 per cent to $3,076 million. The sales declined primarily due to the expiration of the co-promotion terms of the collaboration agreement for Enbrel in the US and Canada, the ongoing expiration of the Spiriva collaboration in certain countries, erosion of branded Lipitor in the US, and most other developed markets due to generic competition. Global vaccines sales remained stagnant at $925 million. Its oncology segment grew by 7 per cent to $488 million from $456 million.
Lipitor sales declined by 27 per cent to $457 million from $626 million and that of Viagra declined by 19 per cent to $374 million from $461 million. Similarly, sales of Norvasc nosedived by 8 per cent to $278 million from $301 million. However, the sales of Lyrica increased by 8 per cent to $1,150 million from $1,066 million in the similar quarter of last year. The company's R&D expenditure moved down slightly to $1,612 million.
Ian Read, chairman and chief executive officer, said, “We recently implemented our new commercial structure and I see each segment as comprised of an attractive mix of marketed products and new producer opportunities with strong management teams and financial discipline. I believe this new commercial structure and the additional financial transparency for each segment will foster a heightened level of strategic focus and discipline within each business.”
"Despite continuing revenue challenges due to ongoing product losses of exclusivity and co-promotion expirations, I look forward to the remainder of the year given the strength of our mid-and late-stage pipeline, the continued growth opportunities for our recently launched products as well as opportunities for upcoming product launches.” he added.
The company expects its adjusted revenues for the year 2014 in the range of $49.2 billion to $51.2 billion and EPS at $2.20 to $2.30.