Loss of exclusivity hits Pfizer sales
Profit rises by 5% to US$2.61bn
US pharmaceutical giant Pfizer has reported a fall of 1% in second-quarter 2011 sales to US$17.0bn, owing to the loss of exclusivity for several products in some regions and healthcare reform in the US.
Net profit rose 5% to $2.61bn up from $2.48bn a year earlier.
US revenues were down 9% to $6.7bn, compared with the year-ago quarter, while International revenues were up 5% to $10.3bn.
Pfizer is exploring ‘strategic alternatives’ for non-pharmaceutical assets, including the animal health and nutrition businesses. The company has completed the sale of its Capsugel business to Kohlberg Kravis Roberts for $2.4bn.
‘We are currently evaluating the best structure for each of these businesses to deliver the greatest after-tax return for our shareholders,’ said chief executive Ian Read.
Read added that Pfizer would continue to invest in areas that would ‘enhance our presence, expand the breadth of our portfolio and position our businesses to better capitalise on high-growth opportunities’.
Primary Care unit revenues were driven by growth from certain patent-protected products, including Lyrica, Spiriva and Pristiq, as well as the addition of $124m, or 2%, from legacy King Pharmaceuticals products.
However, the loss of exclusivity for cholesterol blockbuster Lipitor in Canada and Spain in May and July 2010, respectively, as well as the loss of exclusivity of Aricept in the US in November 2010, reduced Primary Care unit revenues by $586m, or 10%, in comparison with second-quarter 2010.
There was strong growth in the Prevenar franchise in Japan and Europe, but Prevnar 13 revenues in the US were hit by changes in purchasing patterns for the private sector.
Specialty Care unit revenues were affected by the loss of exclusivity for Vfend and Xalatan in the US in February and March 2011, which cut revenues in this unit by $181m, or 5%.
While key brands Enbrel, Prevenar, Lyrica and Vfend helped revenue growth in the Emerging Markets business, the loss of exclusivity for Lipitor in Brazil and Mexico in August and December 2010, respectively, and Viagra in Brazil in June 2010 reduced unit revenues by $59m, or 3%.
Established Products unit revenues were mainly impacted by the US loss of exclusivity and resulting increased competition for Effexor, Protonix and Zosyn, which taken together, reduced unit revenues by $631m, or 23%. This decline was partially offset by $146m, or 5%, from the addition of legacy King products.
Read said the performance was inline with expectations and although losses of exclusivity in several key products had a negative impact on sales, many core products, primarily Lyrica, Enbrel and the Prevnar/Prevenar franchise, continued to perform well overall.
During the second quarter, Pfizer completed US and Japanese filings for crizotinib in ALK-positive non-small cell lung cancer and US and EU filings for axitinib in advanced renal cell carcinoma.
The company also reported positive Phase III clinical data for tofacitinib in rheumatoid arthritis and for Eliquis in stroke prevention in patients with atrial fibrillation. Full data presentations are anticipated later this year. Pfizer expects regulatory submissions for both of these medicines in these indications in the US and EU by the end of 2011.