Pfizer reports Q2 results; internal company split

Pfizer has reported its financial results for the second quarter of 2013. The global pharma company’s revenue fell by 7% to US $13 billion, while its adjusted income fell 10% to $4 billion or 56 cents a share. This slightly beat analysts’ predictions of 55 cents a share, according to Thomson Reuters.

Pfizer saw a strong volume growth in the emerging markets in the second quarter, particularly in China where sales of Lipitor and Prevnar attributed to a revenue increase of 4%. Operational revenue growth in emerging markets is expected to accelerate in the second half of 2013.

Pfizer also reported a 5% increase in Consumer Healthcare, primarily due to strong global growth of multivitamin brand, Centrum, which was launched in several key international markets.

“I am pleased with our recent accomplishments focused on creating greater value for our shareholders.

“Within our innovative businesses, during second-quarter 2013, revenues in our Oncology business increased 28% operationally due to the uptake of new products, primarily Inlyta and Xalkori in several major markets, and various key products performed well, notably Lyrica, which grew 14% operationally in developed markets, and Celebrex, which grew 13% in the U.S. We continue to expect our Emerging Markets business growth to accelerate in the second half of the year, led by China. From a total company view, we are tracking to our expectations for the full year and continue to capitalize on the investments we are making to better position Pfizer for long-term success.”

Ian Read, Chairman and Chief Executive Officer, Pfizer.

In addition, second quarter reported earnings were also favorably impacted by the gain associated with the full disposition of Zoetis and income from litigation settlements with Teva and Sun for patent-infringement damages.

“Overall, I am pleased with our financial performance so far this year, despite the continued impact of product losses of exclusivity and a challenging operating environment. We are reaffirming all components of our 2013 adjusted financial guidance, which reflects our performance to date, confidence in the business, financial flexibility and a rigorous expense-management process.”

Frank DAmelio, Chief Financial Officer, Pfizer.

Pfizer has also announced new plans to internally separate its commercial operations into three business segments (two Innovative, one Value) from January 2014.

One of the Innovative business segments will include products across multiple therapeutic areas that are expected to have market exclusivity beyond 2015, including inflammation and immunology, CV / metabolic, neuroscience, rare diseases and women’s /men’s health.

The other Innovative business segment will include vaccines, oncology and Consumer healthcare, while the Value business segment will include products that generate strong, consistent cash flow, and will be positioned to provide patients access to effective, lower-cost, high-value treatments.

“This represents the next steps in Pfizer’s journey to further revitalize our innovative core, enhance the value of our consumer and off-patent established brands and maximize the use of our capital to create value for Pfizer and our shareholders.

“Through this evolution, we will enable greater independence and focus for the Innovative and Value businesses. Our new commercial operating model will provide each business with an enhanced ability to respond to market dynamics, greater visibility and focus, and distinctive capabilities optimized to deliver value to patients and shareholders in the coming years.”

Ian Read, Chairman and Chief Executive Officer, Pfizer.

 

 

Related news:

Drugmaker Pfizer’s earnings just top forecasts (Reuters)

Pfizer Beats Estimates as Company Prepares for Split (Bloomberg)

Reference links:

Pfizer press release (Seeking Alpha)

Pfizer press release – company split

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