Financial Reports: Pfizer 2Q11

Pfizer 2Q11

2Q Revenues: $17.0 billion (-1%)

2Q Earnings: $2.6 billion (+5%)

YTD Revenues: $33.5 billion (-1%)

YTD Earnings: $4.8 billion (+7%)

Comments: Currency exchange rates (+4%) and revenues from the King Pharmaceuticals acquisition (+2%) kept revenues from a significant drop. Primary Care revenues for 2Q11 were $5.9 billion (-1%), Specialty Care revenues were $3.7 billion (-2%), sales in Emerging Markets grew 7% to $2.4 billion, Established Products sales dropped 15% to $2.3 billion, and Oncology revenues were down 3% to $339 million. Primary sales were impacted by earlier patent expirations of Lipitor (Canada and Spain) and Aricept (U.S.). Expirations of Vfend and Xalatan hurt Specialty sales. Emerging Markets were boosted by Enbrel, Prevnar, Lyrica and Vfend, but hurt by Lipitor’s expirations in Brazil and Mexico and Viagra’s expiration in Brazil. The Animal Health unit, which the company considers non-core and is considering spinning off, posted its first $1.0 billion quarter in 2Q11, up 18%. “Other” revenues, which are primarily from Pfizer CentreSource, the company’s CMO business, were up 17% to $75 million. Lipitor sales fell 8% in 2Q to $2.6 billion and is -11% YTD at $5.0 billion.