Summary
Pfizer Inc. reported revenues of $12,131 million for the third quarter of 2020, a decrease of 4% compared to the same period in the prior year, primarily driven by an 18% operational decline in the Upjohn segment due to Lyrica's U.S. loss of exclusivity and lower sales of Lipitor and Norvasc in China. The Biopharma segment, however, showed a 4% operational growth, supported by key brands like Ibrance, Eliquis, and Xeljanz. The company's net income attributable to Pfizer Inc. was $2,194 million, or $0.39 per diluted share, compared to $7,680 million, or $1.36 per diluted share, in the prior year's quarter. This significant year-over-year decrease in net income was largely due to the non-recurrence of a substantial gain from the Consumer Healthcare JV transaction in Q3 2019. The company also highlighted ongoing R&D efforts, including a collaboration with BioNTech for a COVID-19 vaccine candidate, and provided updated financial guidance for the full year 2020. The company is progressing with its planned combination of Upjohn with Mylan, expecting the transaction to close in November 2020.
Financial Highlights
55 data points| Revenue | $10.28B |
| Cost of Revenue | $2.01B |
| Gross Profit | $8.27B |
| SG&A Expenses | $2.66B |
| Operating Income | $5.98B |
| Interest Expense | $345.00M |
| Net Income | $1.47B |
| EPS (Basic) | $0.26 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 5.56B |
| Shares Outstanding (Diluted) | 5.63B |
Key Highlights
- 1Total revenues for Q3 2020 decreased by 4% to $12,131 million, primarily impacted by a significant decline in the Upjohn segment.
- 2Biopharma segment revenues grew operationally by 4% in Q3 2020, driven by strong performance in key brands like Ibrance, Eliquis, and Xeljanz.
- 3Upjohn segment revenues saw an operational decline of 18% in Q3 2020, largely due to the loss of exclusivity for Lyrica in the U.S. and pricing pressures in China.
- 4Net income attributable to Pfizer Inc. decreased significantly to $2,194 million ($0.39/diluted share) from $7,680 million ($1.36/diluted share) in Q3 2019, mainly due to the absence of a large one-time gain from the Consumer Healthcare JV transaction in the prior year.
- 5Pfizer is actively involved in the development of a COVID-19 vaccine in collaboration with BioNTech, advancing to Phase 3 clinical trials.
- 6The company reaffirmed its full-year 2020 financial guidance for Total Company and New Pfizer, reflecting ongoing operational performance and the impact of COVID-19.
- 7Pfizer is nearing the completion of its plan to combine its Upjohn business with Mylan, with the transaction expected to close in November 2020.