Summary
Pfizer Inc. reported revenues of $13.05 billion for the third quarter of 2016, a 7.7% increase year-over-year, driven by operational growth and the inclusion of Hospira's results. Net income attributable to Pfizer Inc. for the quarter was $1.32 billion, down from $2.13 billion in the prior year, largely due to a $1.4 billion impairment charge related to the divestiture of the Hospital Infusion Systems (HIS) business and higher costs. For the nine months ended October 2, 2016, revenues increased by 12.6% to $39.20 billion, while net income attributable to Pfizer Inc. decreased by 11.2% to $6.36 billion. The company completed significant acquisitions during the period, including Medivation for approximately $14.3 billion and Anacor for approximately $4.9 billion, bolstering its oncology and dermatology portfolios respectively. Pfizer also announced its intention to divest its global infusion therapy net assets (HIS) to ICU Medical for approximately $1 billion. Management highlighted strong operational growth in key innovative health products like Ibrance and Xeljanz. However, the Essential Health segment faced continued pressure from the loss of exclusivity on several products. The company reaffirmed its financial guidance for the full year 2016, anticipating revenues between $52.0 and $53.0 billion. The report also details ongoing legal proceedings and restructuring charges related to acquisitions and cost-reduction initiatives.
Key Highlights
- 1Q3 2016 revenues reached $13.05 billion, an increase of 7.7% year-over-year, driven by operational growth and the inclusion of Hospira's operations.
- 2Net income attributable to Pfizer Inc. was $1.32 billion for Q3 2016, a decrease from $2.13 billion in Q3 2015, impacted by a $1.4 billion impairment charge related to the HIS business.
- 3The company completed the acquisition of Medivation for approximately $14.3 billion and Anacor for approximately $4.9 billion, strengthening its oncology and dermatology segments.
- 4Pfizer announced the planned divestiture of its Hospital Infusion Systems (HIS) business to ICU Medical for approximately $1 billion.
- 5Innovative Health (IH) segment revenues grew 9% to $7.33 billion, driven by strong performance in Ibrance, Xeljanz, and Eliquis.
- 6Essential Health (EH) segment revenues increased 7% to $5.71 billion, significantly boosted by the inclusion of Hospira's operations.
- 7Diluted EPS for Q3 2016 was $0.21, down from $0.34 in the prior year period.