New York-based drug giant Pfizer Inc (NYSE:PFE) posted better-than-expected second quarter profits Tuesday, driven by higher sales of pneumonia vaccine Prevnar and arthritis drug Xeljanz.
For the quarter ended June 2018, the drugmaker posted earnings of US$0.81 per share on revenue of US$13.5bn. It beat the consensus earnings estimate of US$0.75 per share on revenue of US$13.3bn. Revenue grew 4.4% on a year-over-year basis.
Pfizer shares were down 1.2% to US$38.15 in premarket trade.
“We reported solid second-quarter financial results, with total company revenues up 2% operationally, driven by the continued growth of key brands such as Eliquis, Ibrance and Xeljanz, as well as biosimilars and emerging markets,” said Pfizer CEO Ian Read.
The CEO said the performance of “these growth drivers” was offset by a decline in legacy established products in developed markets, more generic competition and lower sales of off-patent medicines, and reduced production of some sterile injectable painkillers and other medicines at its Hospira unit.
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The CEO acknowledged that slowdown while Pfizer upgrades a Kansas factory has been causing disruptive shortages in hospital supplies for the past year.
Strengthening dollar could play spoilsport
Pfizer boosted its 2018 profit forecast raising its full-year adjusted earnings per share forecast to between US$2.95 and US$3.05, from US$2.90 to US$3.00 earlier.
However, Pfizer trimmed its sales forecast, warning that weakening currencies in Europe and Asia could nick revenue in coming quarters. The company lowered its 2018 revenue expectation to between US$53bn and $55bn, from $53.5bn to $55.5bn, due to a strengthening dollar.
Pfizer's push into lucrative oncology area
Pfizer which ranks as the biggest drugmaker in terms of prescription drug sales is trying to muscle into the lucrative oncology area. Sales of cancer medicines jumped 15% to US$1.82bn, led by Ibrance at US$1.03 billion. Pfizer is looking to add to Ibrance’s success.
“We are looking ahead to several potential near-term opportunities in core therapeutic areas, and continue to see the potential for approximately 25-30 approvals through 2022, of which up to 15 have the potential to be blockbusters,” said Read.
“We continue to believe our pipeline positions us to deliver life-changing medicines to patients while enhancing shareholder value.”
Contact Uttara Choudhury at uttara@proactiveinvestors.com
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