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Pfizer Q2 2013 revenues decreased $995 million

Staff writer |
Pfizer reported financial results for Q2 2013. Revenues decreased $995 million, or 7%, which reflects an operational decline of $603 million, or 4%.

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"I am pleased with our recent accomplishments focused on creating greater value for our shareholders, including the completion of the full disposition of Zoetis(1) which generated over $17 billion in value as well as the announcement of our new commercial model," said Ian Read, chairman and chief executive officer.

"Within our innovative businesses, during second-quarter 2013, revenues in our Oncology business increased 28% operationally due to the uptake of new products, primarily Inlyta and Xalkori in several major markets, and various key products performed well, notably Lyrica, which grew 14% operationally in developed markets, and Celebrex, which grew 13% in the U.S.," added Mr. Read.

"Overall, I am pleased with our financial performance so far this year, despite the continued impact of product losses of exclusivity and a challenging operating environment. We are reaffirming all components of our 2013 adjusted financial guidance, which reflects our performance to date, confidence in the business, financial flexibility and a rigorous expense-management process.

"We continue to expect to repurchase in the mid-teens of billions of dollars of our common stock this year, with $8.7 billion repurchased through July 29, given our strong operating cash flow and proceeds generated from our portfolio actions," said Frank D'Amelio, chief financial officer.

Revenues decreased $995 million, or 7%, which reflects an operational decline of $603 million, or 4%, and the unfavorable impact of foreign exchange of $392 million, or 3%. The operational decrease was primarily the result of the losses of exclusivity of Lipitor in developed Europe in second-quarter 2012, as well as the impact of multi-source generic competition for Lipitor in the U.S. beginning in late-May 2012.

Primary Care revenues decreased 15% operationally, Specialty Care revenues were flat operationally, emerging markets revenues grew 4% operationally, established products revenues decreased 7% operationally, and consumer healthcare revenues increased 5% operationally.

The diluted weighted-average shares outstanding declined by approximately 420 million shares, primarily due to the company's ongoing share-repurchase program.

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