Pfizer sales flat as Lipitor revenues decline
pharmafile | May 4, 2011 | News story | Sales and Marketing | Pfizer
Pfizer’s sales decreased slightly in the first quarter after rising revenues in specialty care and emerging markets failed to offset poor performance in the company’s largest business segment.
Primary care sales fell 7% to $5.4 billion, pulled down by declining revenues from Lipitor. The blockbuster cholesterol treatment’s loss of exclusivity outside the US continued to erode its dominance and sales were down 13% in the first three months of this year to $2.4bn.
Overall revenue dropped from $16.58bn last year to $16.5bn this time, but the company was still able to produce profits of $2.22 billion in the first quarter, up from $2.02bn for the same period in 2010, following a rigorous cost-cutting programme.
Chief executive Ian Read said the results were “solid” and pointed to expected filings in the US and Europe by the end of 2011 for various products.
These include arthritis drug tofacitinib – although last month four deaths were reported in a late-stage study – and the blood-thinner Eliquis, which it is developing with Bristol-Myers Squibb.
It has been a busy few months for the company: in December, Pfizer’s chief executive Jeffrey Kindler unexpectedly stepped down, leaving the way clear for Read, then head of the company’s global biopharma operations, to take over.
2011 has already been a tricky year for Pfizer as it weathered a political and media storm over its decision to close its major European research centre in Sandwich, Kent, with the loss of 2,400 jobs.
The company says it expects to spend 30% less on R&D this year than last, dropping from its pipeline 15 drug projects, including four late-stage ones.
The company also faces some well-signposted troubles ahead, not least this November’s loss of US patent protection for its blockbuster Lipitor.
However, last month the company agreed to sell its drug delivery unit Capsugel for $2.38 billion, in part to fund its ongoing share buyback programme, which Pfizer says will see the company repurchasing between $5bn and $7bn of its common stock this year.
There is still no direct word from senior management on speculation that Pfizer intends to focus on its pharma business, and will get rid of its animal, nutritional and consumer health activities at some point.
Read would only say that the company is “focused on continuing the evaluation of our business portfolio to determine the optimal mix of businesses”. “We expect to complete this evaluation during the second half of 2011,” he concluded.
Adam Hill
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