Pfizer revenues dips by 6.7% to $15 bn in Q4, Lipitor sales declines by 59% in 2012
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Pfizer revenues dips by 6.7% to $15 bn in Q4, Lipitor sales declines by 59% in 2012
Pfizer Inc., a leading pharmaceutical major with revenues of $59 billion, has posted lower revenue during the fourth quarter ended December 2012 primarily due to the loss of exclusivity of Lipitor and Geodon. Its revenues declined by 6.7 per cent to $15,068 million from $16,141 million in the corresponding period of last year. The company's net profit from continuing operations improved by 5.5 per cent to $1,490 million from $1,413 million. However, after selling its nutrition business to Nestle, it reported gain of $4.8 billion and its net income increased to $6,315 million from $1,439 million in the similar period of last year.
Pfizer's US revenues declined sharply by 9 per cent to $5.8 billion and its international revenues declined by 5 per cent to $9.3 billion. US revenues represented 38 per cent of total revenues in the fourth quarter ended December 2012 compared with 39 per cent in the similar period of last year, while international revenues represented 62 per cent of total revenues compared with 61 per cent in the year-ago quarter. The revenues of biopharmaceutical viz., primary care, specialty care, emerging markets, established products and oncology, declined by 9 per cent to $12,893 million from $14,136 million.
For the full year ended December 2012, Pfizer's revenues declined by 10 per cent to $58,986 million from $65,259 million in the previous year. Its net profit from continuing operations increased by 13.4 per cent to $9,518 million from $8,395 million. However, after added income from sale of Nutrition business of $4,831 million the actual net profit went up by 45.6 per cent to $14,570 million from $10,009 million. Its R&D expenditure also declined by 11.8 per cent to $16,616 million from $18,832 million in the previous year.
The revenues from US for the full year declined sharply by 14 per cent to $23.1 billion and its Its international revenues also declined by 6 per cent to $35.9 billion mainly due to loss of exclusivity of Lipitor. US sales represented 39 per cent of total revenues in full-year 2012 compared with 41 per cent in the previous year, while international revenues represented 61 per cent of total revenues compared with 59 per cent in the last year.
The sales of Lipitor declined sharply by 59 per cent to $3,948 million from $9,577 million in the previous year. Similar, the sales of Norvasc declined by 7 per cent to $1,349 million from $1,445 million. The company lost blockbuster status for its Xalatan/Xalacom product and its sales declined to $832 million from $1,250 million. Lyrica became the leading product during 2012 and its sales increased by 13 per cent to $4,158 million from $3,693 million.
Ian Read, chairman and CEO, said, “In 2012, we generated attractive returns for our shareholders and made meaningful progress in positioning Pfizer for anticipated sustained value creation. Notable achievements during 2012 included approvals of five important new products in key markets, realizing significant value through the sale of our Nutrition business, preparation for our potential initial public offering of up to a 19.8 per cent stake in Zoetis in order to further unlock value, as well as returning almost $15 billion to our shareholders through dividends and share repurchases. In addition, many of our key innovative products reported solid operational growth and our emerging market s business generated strong growth.”
“During 2013, we will continue to foster our two distinct operating models in order to best support our innovative and value-driven businesses and position them to generate peak performance. We also look forward to successful launches for Xelijanz for he treatment of moderate-to-severe rheumatoid arthritis and, together with our partner Bristol-Myers Squibb, Eliquis for the prevention of stroke and systemic embolism in patients with nonvalvular atrial fibrillation,” Read added.
Frank D'Amelio, CFO, said, “The company expects to report revenues in the range of $56.2 billion to $58.2 billion and adjusted diluted EPS of $2.20 to $2.30 during 2013 on account of cost-reduction initiatives. The company is likely to continue to deploy significant capital to share repurchases during the year.”
Source: Pharmabiz.