Pfizer Inc., has suffered a setback during the second quarter ended June 2016 and its net profit declined by 23.1 per cent to US$ 2,019 million from $2,626 million in the similar period of last year. Its revenues, however, increased by 10.9 per cent to $13,147 million from $11,853 million. EPS declined to $0.33 from $0.43 in the last period. The figures are not strictly comparable as the company acquired Hospira Inc during September 2015 and previous period do not include any contribution from Hospira operations.
The sales of innovative health division increased by 7 per cent to $7,105 million from $6,6630 million and that of essential health division increased by 16 per cent to $6,042 million from $5,223 million. The sales of Hospiria amounted to $1,138 million. Excluding Hospiria sales, Pfizer's sales improved 1.3 per cent.
Ian Read, chairman and CEO, said, “Our continued sharp focus on executing against the distinct strategies for both our Innovative health and essential health businesses has delivered a strong financial performance during the second quarter as well as for the first half of 2016. This performance was driven by all areas of the company, reflecting ongoing strength from our recent product launches and key in-line products, the contribution of legacy Hospira products, continued improvement in the revenue profile for our standalone essential health business, the advancement of our product pipeline and sound capital allocation choices.”
“Furthermore, I see our product pipeline along with the assets obtained from our recent business development initiatives as positioning the company competitively in those areas where I believe Pfizer's strengths can generate significant shareholder value over time while also benefiting patients,” Read added.
For the first half ended June 2016, Pfizer's net sales increased by 15.1 per cent to $26,152 million from $22,717 million in the corresponding period of last year. Its net profit improved only by 0.7 per cent to $5,036 million from $5,002 million with EPS of $0.82 as against $0.80 in the last period. Its R&D expenditure declined to $3,478 million from $3,620 million.
The sales of innovative health business improved by 14 per cent to $14,139 million during the first half ended June 2016 from $12,368 million in the same period of last year. The sales of essential health business increased by 16 per cent to $12,013 million from $10,348 million. Hospira sales amounted to $2,337 million in the current period.
The company's sales in US increased by 37 per cent to $12,960 million from $9,428 million in the similar half of last year and its international sales declined by one per cent to $13,192 million from $12,289 million. The sales of Prevnar/Prevenar 13 declined to $2,766 million from $2,808 million and that of Enbrel (outside the US and Canada) declined by 5 per cent to $1,500 million from $1,581 million. The sales of Lipitor also declined by 8 per cent to $872 million from $950 million. However, the sales of Lyrica IH increased by 17 per cent to $2,059 million from $1,753 million.
The company projected total revenue of $51 billion to $53 billion in 2016 with EPS in the range of $2.38 to $2.48.