Pfizer Inc, a second largest pharmaceutical company in the world after Novartis, has suffered heavy setback during the second quarter ended June 2014 on account of one time income received from sell of animal health business, Zoetis Inc., for a consideration of $10.4 billion in the last period. The net profit declined by 79.3 per cent to $2,912 million from $14,095 million in the corresponding quarter of last year. Its revenues also declined by 1.5 per cent to $12,773 million from $12,973 million due to multi-source generic competition for Celebrex in the US and destocking by wholesaler and retailer.
The company began managing its commercial operations through a new global commercial structure consisting of three operating segments viz., Global Innovative Pharmaceuticals Segment (GIP), Global Vaccines, Oncology and Consumer Healthcare segment (VOC) and Global Established Pharmaceutical segment (GEP).
The GEP sales declined by 6 per cent to $6,513 million from $6,921 million and that of GIP sales declined by 5 per cent to $3,547 million from $3,726 million. However, its sales of global vaccines and consumer healthcare improved by 13 per cent and 14 per cent respectively to $1,097 million and $912 million. Its sales of global oncology went up by 16 per cent to $570 million from $493 million. R&D expenditure increased by 13 per cent to $1,714 million from $1,521 million.
The expiration of the co-promotion term of the collaboration agreement for Enbrel in the US and Canada, the ongoing termination of the Spiriva collaboration in certain countries as well as the loss of exclusivity and subsequent multi-source generic competition for Detrol La in the US put pressure on additional burden on sales growth.
Ian Read, chairman and CEO, said, “I am pleased with our operating performance. Our recently launched products continued to gain traction during the quarter while our mid-and-late-stage pipeline continued to progress with a regulatory submission in the US completed for our meningitis B vaccine candidate and our palbociclib regulatory submission in the US underway.”
Frank D'Amelio, chief financial officer, said, “Overall, I am pleased with our second-quarter 2014 financial results despite the continued negative impact from product losses of exclusivity and the termination of certain co-promotion collaborations. We updated our 2014 adjusted revenue guidance to reflect the anticipated negative impact associated with competition for Celebrex in the US.”
For the first half ended June 2014, Pfizer's net sales declined by 5 per cent to $24,126 million from $25,383 million and its net profit declined sharply by 68.9 per cent to $5,241 million from $16,845 million. Exceptional income of $10,708 million was shown in the second quarter of last year. Though the sales of Lyrica increased by 12 per cent to $2,465 million during the first half from $2,200 million in the similar quarter of last year, the sales of Lipitor, Viagra, Zyvox Sutent and Norvasc declined significantly. Lipitor sales amounted to $1,000 million as against $1,171 million. Its R&D expenditure improved slightly by 4 per cent to $3,382 million from $3,240 million in the corresponding half of last year.