Before the market opened on Tuesday, Pfizer Inc. (NYSE:$PFE) reported its quarterly revenue. Unfortunately, the revenue missed Wall Street estimates. Many speculate the miss in quarterly revenue was caused by a lower demand for Enbrel – rheumatoid arthritis treatment – and Prevnar, a pneumonia vaccine.
Let’s dive into the numbers!
Enbrel sales, which the New York City-based company sells outside the U.S. and Canada, fell roughly 19.5% to $617 million due to competition from biosimilars. On the other side of the equation, sales of Prevnar dropped 8.2% to $1.15 billion, while sales of Ibrance – a breast cancer treatment – earned $853 million. This is significant as it is up from $514 million in the 2016 quarter.
In the quarter, sales of Pfizer’s copycat generics and biosimilars dropped 13.5% to $5.23 billion, and revenue from its patent-protected drugs increased roughly 8% to $7.67 billion.
All together, quarterly revenue dropped to $12.9 billion from $13.15 billion. Again, this is significant as it is below analysts’ estimates of $13.08 billion, according to Thomson Reuters. That said, net income increased $3.07 billion (51 cents per share) from $2.05 billion (33 cents per share) in 2016.
Not including certain items, Pfizer earned 67 cents per share, thus beating out the average analysts’ estimate by a cent.
As a result, thanks to the approaching patent expirations on Viagra, Lyrica and tumbling Prevnar sales, Pfizer has decided to push analysts to prescribe deals to revive the company’s growth.
“Over the next five years, we project the potential for approximately 25 to 30 approvals, of which up to 15 have the potential to be blockbusters,” Ian Read, Chief Executive of Pfizer, said on Tuesday.
Last but not least, Pfizer narrowed its 2017 adjusted earnings estimates to between the range of $2.54 per share to $2.60 per share. Before, the drugmaker had forecast a range of $2.50 per share to $2.60 per share.
Before the opening bell on Tuesday, Pfizer shares were up slightly at $33.30.
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