Pfizer, the second largest pharmaceutical company in the world, has suffered setback during the second quarter ended June 2015 and its net profit as well as revenues declined due to unfavourable impact of foreign exchange, loss of exclusivity and competition. Its net profit declined by 9.8 per cent to $2,626 million from $2,912 million in the corresponding period of last year. Its revenues also moved down by 7.2 per cent to $11,853 million from $12,773 million. EPS worked out $0.43 as against $0.46 in the last period. R&D expenditure remained almost same at $1,732 million.
The company manages its commercial operations through two distinct businesses viz., innovative product business and an established products business. The innovative products business is composed of two operating segments viz., 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).
The sales of innovative products improved by 8 per cent to $6,630 million during the quarter under review from $6,126 million in the similar period of last year. The global vaccines sales improved by 44 per cent to $1,580 million from $1,097 million and that of global oncology increased by 25 per cent to $713 million from $570 million. The sales of GIP declined 1.4 per cent to $3,497 million from $3,547 million. However, the sales of established products declined by 22 per cent to $5,090 million from $6,513 million. The sales of GEP declined sharply by 22 per cent to $5,090 million from $6,513 million. Its sales in emerging markets improved by 6 per cent operationally.
Ian Read, chairman and chief financial officer said, “Our second-quarter and year-to-date financial performance is the result of continued business momentum, driven by solid execution of recent product launches in our innovative products business, notably Ibrance and Prevnar 13 in adults in the US, along with continued growth from Eliquis and Xeljanz, increased focus on and support of growth initiatives within our established products business as well as shareholder-friendly capital allocation. For the remainder of 2015, we look forward to completing the pending acquisition of Hospira, Inc., which we expect will meaningfully enhance our established products business.”
Pfizer's revenue for the first half ended June 2015 declined by 5.8 per cent to $22,717 million from $24,126 million in the corresponding half of last year. Its net profit declined by 4.6 per cent to $5,002 million from $5,241 million. EPS declined slightly to $0.81 from $0.82 million. The sales of innovative products improved by 17 per cent to $12,368 million from $11,376 million and that of established products declined by 19 per cent to $10,104 million from $12,503 million. Its R&D expenditure increased by 9 per cent to $3,609 million from $3,324 million.
The company's US sales of biopharmaceutical improved by 2 per cent to $8,494 million from $8,293 million. However, its biopharmaceutical sales in Europe declined by 20 per cent to $4,691 million from $5,803 million. The sales in emerging markets remained stagnant at $5,033 million. Lipitor worldwide sales declined by 5 per cent to $950 million and that of Enbrel by 16 per cent to $1,582 million from $1,891 million. Zyvox sales declined by 21 per cent to $530 million. Similarly sales of Celebrex moved down to $428 million from $1,86 million.
The company projected revenues of $45 to $46 billion for the full year 2015 and EPS in the range of $1.38 to $1.47. Frank D'amelio, chief financial officer, said, “Overall, I am very pleased with our second-quarter 2015 financial results. We were able to grow revenues by one per cent excluding the impact of foreign exchange, marking the third consecutive quarter of operational revenue growth, despite the continued significant negative impact from product losses of exclusivity, primarily Celebrex and Zyvox in the US and Lyrica in certain developed Europe markets.”