May 2, 2017
By Mark Terry, Breaking News Staff


There was plenty of interesting information in Pfizer (PFE)’s first-quarter financial report. Total revenues for the quarter were down 2 percent from $13.005 billion in the first quarter in 2016 to $12.779 billion this quarter. Reported net income was up 3 percent from $3.038 billion in the first quarter of 2016 to $3.121 billion this quarter.

The first of the axed projects is PF-06291874, a glucagon receptor antagonist that was being evaluated in patients with type 2 diabetes. What is perhaps most surprising about this program being chopped was that it was in Phase II. Ben Adams, writing for FierceBiotech, noted, “It’s not unusual to see Phase I meds disappear from view, but the Phase II diabetes med may well have not come through in testing, or, given the saturated market, may not have been deemed commercially viable.”

The two other programs that were cut were both in Phase I testing. They were PF-06815345 for hyperlipidemia and PF-06412562 for cognitive disorders. The cognitive disorder in question was schizophrenia.

The company also reaffirmed its 2017 financial guidance, projecting revenues for 2017 from $52 to $54 billion, adjusted cost of sales as a percentage of revenues of 20 percent to 21 percent, and adjusted R&D expenses of $7.5 to $8 billion.

“I was pleased with our first-quarter 2017 financial performance, which was in line with our expectations, and it reinforces our confidence in the business going forward,” Ian Read, Pfizer chairman and chief executive officer, said in a statement. “I believe each of our businesses is well positioned without their individual markets with strong portfolios, highly skilled and accomplished leadership and focused strategies. Innovative Health’s core franchises—Prevnar 13, Lyrica, Ibrance, Eliquis, Xeljanz and Xtandi—have strong leadership positions in their respective therapeutic categories and are complemented by new product launches, including Eucrisa and Bavencio, as well as meaningful pipeline progress. Essential Health’s growth opportunities—Sterile Injectables, Biosimilars and Emerging Markets—continue to perform in line with our expectations while we refine the business and position it for potential sustainable revenue growth.”

It’s notable that the company’s Prevnar 13/Prevenar 13, a pneumococcal conjugate vaccine for disease caused by the bacterium Streptococcus pneumoniae, marked a decline of revenues by 7 percent. In the U.S., Prevnar 13 revenues dropped 9 percent. Per Pfizer, this was due primarily to the “continued decline in revenues for the Adult indication due to a smaller remaining ‘catch up’ opportunity compared to the prior-year quarter, partially offset by the favorable impact from the timing of government purchases for the pediatric indication.” Internationally, Prevenar 13 revenues decreased 4 percent operationally.

The company’s Essential Health (EH) brands showed a decline in revenues of 9 percent, marked mostly by a 23 percent operational decline from Peri-LOE Products, which in the U.S. includes Pristiq, which lost U.S. market exclusivity last month. The company also includes, “Lyrica in most developed Europe markets and Zyvox in developed Europe and in the U.S., a 68 percent decline in HIS revenues, reflecting its February 3, 2017 divestiture, and a 5 percent operational decline from Legacy Established Products (LEP).”

They were partially offset by operational growth of 3 percent from its Sterile Injectable Pharmaceuticals (SIP) portfolio and a 62 percent operational growth from Biosimilars, mostly Inflectra in parts of Europe and in the U.S.



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