Pfizer Inc, the second largest drug maker in the world, has suffered setback during the fourth quarter ended December 2013 on account of separation of animal health business, unfavourable foreign exchange rates, expiration of the collaboration agreement for Enbrel in North America, continued erosion for branded Lipitor and expiration of the Spiriva collaboration in certain countries.
Its revenue declined by 2 per cent to $13,558 million during the fourth quarter ended December 2013 from $13,891 million in the corresponding period of last year. Its net profit declined sharply by 59 per cent to $2,568 million from $6,315 million. Earnings per share worked out to $0.39 as against $0.85 in the last period.
The sales of primary care declined by 10 per cent to $3,442 million during the fourth quarter from $3,833 million and that of specialty care declined by 7 per cent to $3,397 million from $3,668 million. Its revenue in emerging market improved by 4 per cent to $2,749 million from $2,370 million. Its R&D expenditure declined by 5 per cent to $1,790 million from $1,884 million.
Pfizer forecast 2014 adjusted profit of $2.20 to $2.30 per share and revenue of about $50.2 billion, despite expecting another $3 billion in revenue losses due to generic competition.
Ian Read, chairman and CEO, stated, “The just-completed year was highlighted by solid financial performance and shareholder-friendly capital allocation, a strengthening of our innovative core as well as the formation of our new commercial structure designed to enable each business to have a sharper focus on its distinct market opportunities and challenges.”
Read continued, “During 2014, we expect to report on several, important clinical data readouts for our mid- and late-stage pipeline compounds. In the near term, we expect to report top-line results for the phase 2 study for palbociclib in patients with post-menopausal, ER-positive, advanced breast cancer and for the CAPiTA study for Prevnar 13 in adults age 65 and older. In addition, we anticipate data presentations at upcoming medical conferences of phase 2b data for Bococizumab, our PCSK9 inhibitor for LDL cholesterol reduction, and phase 2a data for our staphylococcus Aureus vaccine. During the second quarter, we anticipate reporting top-line results for two pivotal phase 3 studies for Xeljanz in psoriasis.”
Frank D’Amelio, chief financial officer, said, “We completed two important strategic initiatives in 2013: the separation of our Animal Health business through the disposition of Zoetis, and the formation of the new commercial structure that was successfully implemented at the start of 2014. Finally, we delivered significant shareholder value through share repurchases and dividends. With our strong operating cash flow as well as the proceeds generated from the separations of our nutrition and animal health businesses, we repurchased $16.3 billion of our common stock in 2013.”
“We are also providing our 2014 financial guidance, including ranges for adjusted revenues of $49.2 billion to $51.2 billion and for adjusted diluted EPS of $2.20 to $2.30. We expect adjusted R&D expenses to be between $6.4 billion and $6.9 billion, which reflects the late-2013 and early-2014 initiations of phase 3 clinical programmes for certain pipeline compounds.” D'Amelio added.
For the full year ended December 2013, Pfizer's revenue declined by 6 per cent to $51,584 million from $54,657 million in the previous year due to continued erosion for branded Lipitor, expiration of the Spiriva collaboration in certain countries and expiration of the collaboration agreement for Enbrel in North America. Its sales were positively impacted by the operational growth of Lyrica, Celebrex, Inlyta and Xalkori globally, Eliquis and Xeljanz in the US, as well as the contribution from the collaboration with Mylan Inc. to market generic drugs in Japan.
The revenue of primary care declined by 15 per cent to $13,272 million from $15,558 million and that of specialty care declined by 6 per cent to $13,288 million from $14,151 million. The sales of established products declined by 8 per cent to $9,457 million from $10,235 million.
Its total revenue in US declined by 5 per cent to $20,274 million from $21,313 million and international revenue by 6 per cent to $31,310 million from $33,344 million.
Its total revenue from biopharmaceutical products declined by 7 per cent to $47,878 million from $51,214 million in the previous year and the same in US went down by 6 per cent to $18,570 million from $19,708 million. Sales of Lyrica, its leading product, moved up by 11 per cent to $4,595 million from $4,156 million and that of Celebrex increased by 7 per cent to $2,918 million from $2,719 million. The sales of Prevnar family, the second largest product as per sales, declined by 3 per cent to $3,974 million from $4,117 million. Lipitor sales declined sharply by 41 per cent to $2,215 million from $3,948 million and that Viagra declined by 8 per cent to $1,881 million. The sales of other major blockbuster products like Norvasc and Sutent also declined by cent and 3 per cent respectively.
Its net profit, however, improved by 51 per cent to $22,003 million from $14,570 million in the previous year mainly due to the gain associated with the full disposition of Zoetis, income from a litigation settlement with Teva Pharmaceuticals and Sun Pharmaceutical Industries for patent-infringement damages, the gain associated with the transfer of certain product rights to its joint venture in China, and lower charges related to the legal matters.