Pfizer Inc., which completed acquisition of Hospira US operations, has suffered heavy setback during the fourth quarter ended December 2015 due to foreign currency losses related to Venezuela, higher purchase accounting adjustments, acquisition-related costs, restructuring charges, etc. Its net profit declined by 50 per cent to $613 million from $1,228 million in the corresponding quarter of last year. Its revenues, however, moved up by 7 per cent to $14,047 million from $13,118 million. EPS moved down to $0.10 from $0.20 in the last period. The company completed acquisition of Hospira, the world’s leading provider of injectable drugs and infusion technologies and a global leader in biosimilars, during September 2015.
Pfizer manages its commercial operations through two distinct businesses viz., an Innovative Products business and an Established Products business. The Innovative Products business is composed of two operating segments like the Global Innovative Pharmaceutical segment (GIP) and the Global Vaccines, Oncology and Consumer healthcare segment (VOC). The Established Products business consists of the Global Established Pharmaceutical segment (GEP), which includes all legacy Hospira commercial operations.
The sales of GIP increased by 3 per cent to $3,862 million during the quarter from $3,748 million and that of VOC increased by 45 per cent to $1,917 million from $1,318 million in the corresponding quarter of last year. The sales of GEP declined sharply by 21 per cent to $5,082 million from $6,407 million. The sales of Hospira was at $1,282 million during the quarter under review. R&D expenditure increased by 14 per cent to $2,318 million from $2,093 million.
For the full year ended December 2015, Pfizer's revenues declined by 1.5 per cent to $48.9 billion from $49.6 billion in the previous year. Its net profit declined by 15.2 per cent to $7.7 billion from $9.1 billion. EPS worked out to $1.24 as against $1.42. Its sales in US increased by 14 per cent to $21.7 billion from $19.1 billion. However, its international sales declined by 11 per cent to $27.1 billion from $30.5 billion in the previous year. Its sales in developed Europe declined 17 per cent to $9,714 million from $11,719 million and that in Developed Rest of World sales declined by 14 per cent to $6,298 million. Its sales in emerging market declined by 3 per cent to $11,136 million from $11,499 million.
The sales of major products like Enbrel (outside US and Canada) declined by 13 per cent to 3,333 million from $3,850 million, Lipitor by 10 per cent to $1,860 million from $2,061 million, Premarin family by 5 per cent to $1,018 million from $1,076 million. Lyrica GEP by 35 per cent to $1183 million from $1,818 million, Zyvox by 35 per cent to $883 million from $1,352 million and Celebrex by 69 per cent to $830 million from $2,699 million. However, sales of Lyrica GIP increased by 9 per cent to $3,655 million from $3,350 million, Viagra GIP by 10 per cent to $1,297 million from $1,181 million and Prevnar family by 40 per cent to $6,245 million from $4,464 million.
The sales of Innovative Products improved by 11.7 per cent to $26.8 billion from $24 billion in the previous year. The sales of GIP improved marginally by 0.6 per cent to $13,965 million from 13,861 million. Global Oncology sales went up sharply by 33 per cent to $2,954 million from $2,218 million and that of global vaccines moved up by 44 per cent to $6,454 million from 4,480 million. Consumer healthcare sales declined to $3,395 million from $3,446 million.
The sales of Established Products declined by 14.2 per cent to $21.6 billion from $25.1 billion. The sales GEP declined sharply by 20 per cent to $20.1 billion from $25.1 billion. Hospira added sales of 1,513 million during 2015. R&D expenditure for the year 2015 increased by 7 per cent to $7,653 million from $7,153 million.
Ian Read, chairman and CEO, said, “The just completed year was very productive in terms of business momentum, pipeline advancement and business development activity. I am particularly pleased with the performance of our Prevnar 13 adult and Ibrance launches in the US. In addition, Eliquis, Zeljanz and the Hospira portfolio, among other assets, along with operational growth in emerging markets, meaningfully enhanced the strength of our businesses.”
“I believe that we are well positioned to deliver another strong year in 2016 as we expect that our key in-line products will continue to perform well while we expect to advance our product pipeline, notably our potential registrational programmes in key therapeutic areas such as oncology, vaccines, cardiovascular and metabolic diseases.”
Frank D'Amelio, chief financial officer, said, “We believe the completion of the Hospira acquisition and the pending Allergan combination will strengthen our core businesses and better position the company for sustainable revenue growth in the future. Today we are also providing our 2016 financial guidance, including ranges of reported revenues of $49 to $51 billion and adjusted diluted EPS of $2.20 to $2.30.”