Pfizer (PFE) Beats Q2 on Top and Bottom Line; Looks to IPO 20% of Animal Health Unit

July 31, 2012 9:06 AM EDT
Pharmaceutical giant, Pfizer Inc. (NYSE: PFE), reported second quarter earnings this morning. The company's Q2 EPS were reported at $0.62, slightly better than annually estimates which called for EPS of $0.54. Revenue for the quarter came in slightly higher than anticipated, at $15.1 billion versus the consensus estimate of $14.9 billion.

In the second quarter of 2011, the company reported $16.5 billion in revenue, 9 percent higher than in the second quarter of 2012. The decline in year-over-year revenue was a result of lower sales of Lipitor, and was widely anticipated by investors. U.S. branded Lipitor revenues decreased to $296 million, from $1.4 billion reported in second-quarter 2011, due to the loss of exclusivity and the entry of multi-source generic competition in May 2012.

EPS for the second quarter increased 5 percent compared to the same period last year.

Emerging Markets unit revenues grew 14 percent operationally in comparison with second-quarter 2011, primarily due to volume growth mainly in China and Russia as a result of more targeted promotional efforts for key products, including Lipitor, Norvasc and Lyrica.

Animal Health unit revenues increased 7 percent operationally in comparison with the same quarter last year, largely due to increased demand across the companion animal and global livestock portfolios in key geographies. Consumer Healthcare unit revenues increased 11% operationally in comparison with second-quarter 2011, primarily due to the addition of products from the acquisitions of Ferrosan Consumer Health in December 2011 and Alacer Corp. in February 2012.

Pfizer reaffirmed 2012 guidance of $58.0 to $60.0 billion in revenue and $2.14 to $2.24 in adjusted diluted EPS.

On the Animal Health unit, Pfizer sees filing a registration statement with the U.S. SEC for an IPO of a 20 percent stake in the unit. The filing is expected to be made in mid-August, or thereabouts.

Ian Read, Chairman and Chief Executive Officer, stated, “We delivered solid results this quarter. This performance was achieved despite the $1.8 billion, or 11%, negative impact on revenues of product losses of exclusivity compared with the year-ago period, primarily Lipitor in most major markets. Worldwide revenues from many of our key medicines, including Celebrex, Enbrel, Lyrica and the Prevnar/Prevenar franchise, increased and our Emerging Markets unit generated 14% operational revenue growth, driven primarily by our targeted investments in China and Russia.”

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