Summary
Pfizer Inc.'s (PFE) Q2 2020 report shows a decline in revenue compared to the prior year, primarily due to the ongoing impact of the Consumer Healthcare joint venture divestiture and the continued loss of exclusivity for Lyrica in the U.S. The Biopharma segment demonstrated resilience with operational growth driven by key brands like Ibrance, Eliquis, and Xeljanz, as well as strong performance in rare disease treatments. However, the Upjohn segment experienced a significant revenue decrease, largely attributed to generic competition. Despite the revenue challenges, Pfizer reported a net income attributable to Pfizer Inc. of $3.426 billion, or $0.61 per diluted share. The company also provided updated financial guidance for 2020, anticipating total revenues between $48.6 to $50.6 billion and adjusted diluted EPS between $2.85 to $2.95. Pfizer highlighted its ongoing efforts to combat COVID-19 through collaborations and advancements in vaccine development.
Financial Highlights
54 data points| Revenue | $9.86B |
| Cost of Revenue | $1.83B |
| Gross Profit | $8.04B |
| SG&A Expenses | $2.66B |
| Operating Income | $5.07B |
| Interest Expense | $367.00M |
| Net Income | $3.49B |
| EPS (Basic) | $0.63 |
| EPS (Diluted) | $0.62 |
| Shares Outstanding (Basic) | 5.55B |
| Shares Outstanding (Diluted) | 5.62B |
Key Highlights
- 1Total revenues decreased by 11% to $11.8 billion in Q2 2020 compared to Q2 2019, primarily due to the divestiture of the Consumer Healthcare business and the U.S. loss of exclusivity for Lyrica.
- 2Biopharma segment revenues increased by 4% operationally, driven by strong performance in key products like Ibrance, Eliquis, and Vyndaqel/Vyndamax.
- 3Upjohn segment revenues decreased by 32% operationally, largely due to the impact of generic competition on Lyrica.
- 4Net income attributable to Pfizer Inc. was $3.426 billion ($0.61 per diluted share) for the quarter, a decrease from $5.046 billion ($0.89 per diluted share) in the prior year.
- 5Research and Development (R&D) expenses increased by 16% due to collaborations on a COVID-19 vaccine with BioNTech and a Lyme disease vaccine with Valneva.
- 6Pfizer updated its full-year 2020 financial guidance, projecting revenues between $48.6 billion and $50.6 billion and adjusted diluted EPS between $2.85 and $2.95.
- 7The company is actively involved in developing a COVID-19 vaccine in partnership with BioNTech, with potential for significant future revenue if successful.