Boston, MA 07/23/2013 (wallstreetpr) – Despite increase in profits by 53% and revenues over 6% from emerging markets during the first quarter, Pfizer Inc. (NYSE:PFE) has cut its full-year diluted EPS guidance from $1.50-$1.65 to $1.44-$1.59. Stiff competition, loss of exclusivity on its bestsellers, slower than expected sales of new products and currency fluctuations with regards to weakening yen seems to be fundamental considerations behind this guidance.
PFE’s revenues has also dropped by 9% quarter-over-quarter and hence the company has decided to refocus on its high profit prescription drug business and divesting or selling off its non-pharmaceutical and generic drug businesses. This considerationwas also evident,most recently,in divestment of its animal healthcare company Zoetis.All these may help PFE to focus on its new drugs’ sales growth and overall profitability.
Considering PFE’s frontline drug sales, patent expiration of its bestsellers Lipitor (lipid-lowering drug) and Viagra(world renowned drug brand for erectile dysfunction) coupled with below estimate sales of Prevnar-13 and Enbrel, are impacting its revenue. Though company has not reported sales of two new drugs in its first-quarter results, the estimates of lower sales growth of Eliquis (blood thinner) and Xeljanz (drug for Rheumatoid Arthritis) does not seem to offset the falling sales from existing drugs.Sales of Eliquis are estimated to be 50% lower than analyst expectations.
However PFE is keen on maintaining its revenues and high trends in its net income and is positive on sales growth of Xeljanz which has been approved for sales in several countries around the world, including Agrentina, Kuwait, Russia, Switzerland and the UAE. It is expected to be a blockbuster drug for millions of patients who don’t adequately respond to existing treatments.
PFE’s high dividend payouts of 3.3% and focused strategies on its prime prescription drug business seem to maintain shareholders’ confidence for long-term value investment.
