Pfizer Inc. posted quarterly revenue that missed estimates on Wall Street Tuesday, hurt from the drop in demand for Prevnar its blockbuster vaccine for pneumonia, along with other older drugs.
Prevnar sales were down by 8.2% ending the quarter at $1.15 billion due in large part on the timing of purchases made by the government for pediatric indication.
The sales for biosimilars and copycat generics were down 13.5% during the quarter ending at $5.23 billion.
The ambition of Pfizer to stabilize the business looks off said one analyst as revenue from its drugs that are patent protected increased 8% to end the quarter at $7.67 billion.
Sales of key drugs at Pfizer, including Xeljanz its treatment for rheumatoid arthritis and Ibrance its treatment for breast cancer beat estimates by analysts.
However, the company’s revenue overall was down ending the quarter at $12.9 billion from last year during the same quarter of $13.15 billion, or below the estimate by analysts of $13.07 billion.
Analysts said the results showed that the growth drivers at Pfizer are not efficient enough to drive meaningful growth in sales against the erosion made by generic competition.
Attributable net income to the largest drug maker in the U.S. increased to over $3.07 billion equal to 51 cents a share compared to the same period one year ago of $2.05 billion equal to 33 cents a share.
Excluding certain items, Pfizer’s per share earnings reached 67 cents beating analyst estimates by one penny.
Looming expiration of the patents for Viagra the treatment for sexual dysfunction, Lyrica the pain drug and falling sales for Prevnar pushed the company into coming up with ways to revive the growth of the company.
Over the upcoming five years, the company projects a potential for between 25 and 30 approvals, with as many as 15 of them having the potential to one day be blockbusters said Ian Read the Pfizer CEO.
In 2016, Pfizer acquired Medivation another drug maker for the price of $14 billion and decided not to split into two entities, one with patent protected drugs and one with generic drugs.
Pfizer also trimmed its forecast for adjusted earnings to between $2.54 and $2.60 a share. It previously had forecasted a range of between $2.50 a share and $2.60 a share.
Shares of the company were slightly down prior to the opening bell on Wall Street Tuesday morning.