Pfizer Dodges a Bullet on Earnings

The drug giant actually made a profit of $2.38 billion in the first quarter on a net basis. It also reported that it repurchased roughly $6 billion in stock in the first quarter, $5 billion of which was accelerated.

Pfizer gave the breakdown in unit revenues as follows:

• Global Innovative Pharmaceutical at $3.08 billion, up 7%
• Global Established Pharmaceutical at $5.01 billion, down 16%
• Global Vaccines $1.33 billion, up 44%

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Pfizer called its proposed acquisition of Hospira, which it later called the world’s leading provider of injectable drugs and infusion technologies and a global leader in biosimilars, an excellent strategic fit that will accelerate the growth trajectory of its Global Established Pharmaceuticals business. Ian Read, Pfizer’s chairman and chief executive officer, said about the quarter:

We began the year with good performance on both the top and bottom line and I believe the company is well-positioned in terms of in-line products, recent product launches, geographic reach and product pipeline. During the first quarter of 2015, our new products delivered strong performances. We continued to see strong uptake for our Prevnar 13 vaccine in older adults in the U.S. Ibrance, our recently approved therapy for first-line advanced breast cancer in the U.S., performed very well following its February launch. We also announced this month that a Phase 3 trial of Ibrance for recurrent breast cancer had met its primary endpoint of progression-free survival. Additionally, Eliquis delivered another strong quarter of growth as adoption among cardiologists continues to improve globally.

Pfizer shares closed down 1.9% at $34.59 ahead of earnings. The early trading indications were up 1% or so at $34.95 on Tuesday morning. Pfizer’s 52-week trading range is $27.51 to $35.53, and its consensus analyst price target is $36.60.