Lipitor woes take toll on Pfizer
pharmafile | July 19, 2007 | News story | Sales and Marketing |Â Â Â
Sales of Pfizer's flagship brand Lipitor suffered in the second quarter, contributing to a 20% drop in profits.
The company began a widespread cost-cutting and reorganisation programme in January, that included substantial cuts to its salesforce and, as a result, rep productivity has been hit.
US patent expiries on its former blockbusters Zoloft and Norvasc and the timing of some R&D expenses also dragged Pfizer's figures down. Profits fell by 20% to $2.94 billion and revenues dropped by 6% to $11.1 billion in the second quarter.
The company said it had faced difficult challenges in the period but that the results did not changes its financial expectations for 2007 and 2008.
Chief executive Jeffrey Kindler said: "Notwithstanding the second quarter, our year-to-date 2007 revenues were comparable to the same period in 2006 and I am encouraged by the progress we are making on the immediate priorities we outlined last January to strengthen our near and long-term performance."
Worldwide Lipitor sales declined 13% to $2.7 billion in the second quarter of 2007 compared to the same period last year. Sales suffered most in the US, where they fell by 25% – half of which was due to changes in wholesaler inventory levels.
Products that did perform well in sales included Caduet (up 50%), Lyrica (49%), Aromasis (22%) and Zyvox (21%). But the company said it continued to be disappointed with the performance of its inhaled insulin Exubera, which made $4 million of sales in the quarter.
During the second quarter, the company was also obliged to make payments to Bristol-Myers Squibb in connection with their agreement to develop and commercially collaborate on cardiovascular drug Apixaban.
Apixaban is being developed for the prevention and treatment of venous and arterial thrombotic conditions. Late-stage clinical trials are underway and BMS expects to file for US approval of the first indication in the second half of 2009.
