Pfizer sales shrink 9 per cent
pharmafile | April 30, 2013 | News story | Sales and Marketing | Ian Read, Lipitor, Pfizer
Pfizer endured another painful cut to its revenues in the first quarter of 2013, with sales down $1.4 billion, or 9 per cent, compared to the same period last year.
The decline reflects an operational fall of $1.3 billion, or 8%, and the unfavourable impact of foreign exchange of $118 million, or one per cent. The sales decline was largely down to continued erosion of Lipitor sales in the second quarter of 2012 in developed Europe and Geodon in March 2012 in the US, the impact of purchasing patterns of Prevnar/Prevenar 13 in various markets, plus other setbacks in emerging markets.
Ian Read, chairman and chief executive, said: “As we begin 2013, we continue to generate attractive returns for our shareholders. We are clearly seeing the benefits of the investments we’ve been making in our innovative core, as evidenced by recent key product launches, including Eliquis, Xeljanz and various oncology products, as well as significant progress within our mid-to-late stage product pipeline, most notably palbociclib.
Read added that he was pleased with the successful completion of the Zoetis IPO and a related debt offering. This has allowed the company to return $8 billion to shareholders in dividends and share repurchases so far this year. The firm says ‘significant additional capital’ is expected to be allocated to these activities for the rest of the year.
Primary Care revenues were also hit by the loss of exclusivity and near-term expiration of co-promotion agreements for Aricept and Spiriva, respectively. These were partially offset by the strong performance of Lyrica in the US and developed Europe.
Meanwhile in emerging markets, revenues grew 6% operationally, mainly thanks to strong volume growth in China, which was partially offset by the the timing of government purchases of Enbrel and the Prevenar franchise in certain emerging markets. Some product rights were transferred to the Pfizer-Hisun joint venture, which also depressed the figures.
Pfizer cut operating costs by $545 million, or 7% across the business, including a reduction in the field force and more streamlined corporate support functions and manufacturing network.
Progress in cardiovascular and oncology
One of the most significant events in the first three months was the launch of Eliquis in the US, UK, Germany, Denmark and Japan. The new treatment for reducing risk of stroke and systemic embolism in patients with non-valvular atrial fibrillation is one of the firm’s most important new drugs, and is expected to be a blockbuster.
There was further good news when the US Patent and Trademark Office granted Pfizer a reissue patent covering Celebrex. The reissue patent will expire in December 2015, while the basic patent will expire in May 2014, in each case including six months of pediatric exclusivity. Pfizer has initiated legal proceedings against several generic companies to enforce the reissued patent.
One promising area of growth is in oncology, where revenues increased 31% operationally. This was driven by the recent launches of new products, most notably Inlyta and Xalkori in several major markets.
Palbociclib received the special ‘Breakthrough Therapy’ designation from the FDA for the potential treatment of patients with breast cancer. Meanwhile a Phase III study of palbociclib in combination with letrozole for first line treatment of post-menopausal women with ER+/HER2- advanced breast cancer began enrolling patients in February.
However, there was bad news from Europe’s Committee for Medicinal Products for Human Use (CHMP). The EMA committee adopted a negative opinion for Xeljanz for the treatment of adult patients with moderate-to-severe active RA.
Andrew McConaghie
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