Pfizer Q2 Profit Tops Estimates; Raises 2018 Earnings Guidance

Pfizer Inc. (PFE) reported second-quarter adjusted EPS of $0.81, an increase of 21% from previous year. On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $0.74 for the quarter. Analysts’ estimates typically exclude special items. Adjusted income was up 19% year-over-year to $4.83 billion. For the second-quarter, reported net income increased 26% to $3.87 billion. EPS was $0.65 compared to $0.51.

Second-quarter revenues were $13.5 billion, an increase of 4%, compared to the prior-year quarter, reflecting the favorable impact of foreign exchange of 3%, and operational growth of 2%. Analysts expected revenue of $13.31 billion for the quarter.

Innovative Health revenues increased 5% operationally in second-quarter 2018 to $8.27 billion, primarily driven by continued growth from key brands including Eliquis, Ibrance and Xeljanz globally, Prevnar 13/Prevenar 13 primarily in emerging markets and the U.S., as well as Xtandi in the U.S. Operational revenue growth for Eliquis, Ibrance, Xeljanz and Xtandi was 42%, 19%, 37% and 21%, respectively. Global Prevnar 13/Prevenar 13 revenues increased 7% operationally in second-quarter 2018. Second-quarter Essential Health revenues declined 4% operationally to $5.19 billion.

Ian Read, CEO, stated, “We reported solid second-quarter 2018 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. The performance of these growth drivers was partially offset by product losses of exclusivity, a decline in legacy Established Products in developed markets and ongoing legacy Hospira supply shortages. Regarding our investment in innovation, we continue to advance our pipeline, and 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.”

For 2018, Pfizer raised guidance for adjusted EPS by $0.05, and now expects to be in the range of $2.95 to $3.05, revised from previous guidance range of $2.90 to $3.00. The company lowered the midpoint of 2018 revenue guidance range by $500 million solely to reflect recent unfavorable changes in Foreign Exchange rates. Revenues are now projected to be in the range of $53.0 to $55.0 billion, revised from previous guidance range of $53.5 to $55.5 billion.

Separately, Pfizer Inc. announced the European Commission has approved TRAZIMERA, a biosimilar to Herceptin (trastuzumab), for the treatment of human epidermal growth factor overexpressing breast cancer and HER2 overexpressing metastatic gastric or gastroesophageal junction adenocarcinoma. TRAZIMERA is Pfizer’s fourth biosimilar, and the first oncology biosimilar, to receive European approval.

by RTTNews Staff Writer

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