Pfizer Inc., has posted net profit growth of 2.9 per cent during the third quarter ended September 2014 to $2,666 million from $2,590 million in the corresponding period of last year. Its revenues declined by 2.2 per cent to $12,361 million from $12,643 million. EPS improved marginally to $0.42 from $0.39 in the last period. 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).
Its adjusted net income declined by 5 per cent during the third quarter to $3,655 million from $3,859 million due to 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 loss of exclusivity and subsequent multi-source generic competition for Detrol LA in the US.
Its revenues in developed markets were favorably impacted by the growth of certain key products, including Lyrica, Prevnar, Eliquis, Xeljanz, Xalkori, Inlyyta, as well as Nexium 24 HR primarily in the US as a result of its recent launch. Revenues in emerging markets increased by 9 per cent operationally, including strong operational growth from Prevenar as well as from Lipitor, primarily in China.
The sales of GEP declined by 7 per cent to $6,239 million from $6,675 million and that of GIP declined by 4 per cent to $3,490 million from $3,640 million. However, sales of global vaccines moved up sharply by 19 per cent to $1,140 million from $954 million. Similarly, global sales of Oncology went up by 16 per cent to $551 million from $473 million. Its R&D expenditure increased by 10 per cent to $1,788 million from $1,625 million.
Ian Read, chairman and chief executive officer, said, “Our key in-line products continued to perform well with our most recent product launches exhibiting further momentum during the quarter. We also generated solid revenue growth in emerging markets and see these geographies as continuing to offer attractive growth opportunities for the company. Regarding our development pipeline, we were pleased that the US FDA accepted our breast cancer compound, palabociclib, for review and also granted it priority review status.”
For the first nine months ended September 2014, Pfizer's revenues declined by 4.1 per cent to $36,487 million from $38,026 million in the similar period of last year. However, its net profit declined by 59.3 per cent to $7,907 million from $19,435 million basically due to discontinued operations gain of $10,719 million in the last period with disposition of its animal health business Zoetis Inc.. Adjusted net profit declined by 10 per cent to $ 7,932 million from $8,779 million. Its R&D expenditure for the nine months increased by 6.5 per cent to $5,184 million from $4,867 million.
The sales of Lyrica increased by 13 per cent to $3,783 million during the first nine months of 2014 from $3,335 million in the same period of last year. Similarly, sales of Prevnar family went up by 11 per cent to $3,163 million from $2,855 million. Enbrel and Celebrex registered sales growth of 3 per cent and one per cent respectively. The sales of Lipitor declined by 13 per cent to $1,489 million from $1,704 million and that of Viagra declined by 13 per cent to $1,227 million from $1,405 million. Its total sales in US declined by 8 per cent to $14,023 million from $15,190 million.
Frank D'Amelio, CFO, said, “Overall, I am pleased with our third-quarter 2014 financial results despite the continued negative impact from product losses of exclusivity and the termination of certain co-promotion collaboration. Additionally, the board of directors last week authorised a new $11 billion share repurchase program, to be utilised over time, in addition to the $1.3 billion of authorisation remaining under the company's current share repurchase program. We continue to expect to repurchase app. $5 billion of our share this year.”